I’ve been meaning to declutter my credit card collection for some time. I had been putting it off because I don’t enjoy dealing with banks, and my wife Sharon really dislikes talking on the phone. Since the credit cards are under both our names, there’s a 50% chance that a card I want to cancel will be in her name. While some banks offer the option to cancel through chat or secure message, it usually requires a phone call if I’m looking to downgrade or negotiate a retention offer.
I’m going through our cards as the anniversary dates arrive and calling before the annual fee is charged to prevent the need to ask for a credit. Each bank has different rules about refunding yearly fees, so closing a card before the fee hits leaves one less thing to worry about.
However, one does not simply close a reward credit card. Depending on the type of card, you need to take care of things before calling the bank to cancel. Since I just canceled my Ink Preferred card, here are five things to do when canceling a Chase card.
Transferring/Using Your Ultimate Rewards Balance
Chase Sapphire, Ink Business, and Freedom cards earn Ultimate Rewards points. This is Chase’s program, and earned points are linked to each card. If you have another Chase card that earns Ultimate Rewards, you can transfer points from the account you’re closing to your other card. From the Chase website:
If you’re planning on closing a Chase credit card account and you have another open Chase credit card, be sure to switch your points over to the open account before closing. Otherwise, you will lose the unused points in your closed account. Closing your card account is one of the only ways to lose your Chase Ultimate Rewards points.
I’d suggest doing this before closing your account, but you’ll have at least 30 days from closing your account to use your points. If you’re canceling your last Chase card, you’ll need to use your points by transferring them to one of Chase’s travel partners or using them to book travel.
Paying Off Your Balance
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Hopefully, you’re not carrying a balance on your credit card because paying interest isn’t worth using a credit card to earn travel points. If you’re paying off your card every month, it makes sense to pay it off before closing your account. This isn’t necessary, but it will help make the final step easier.
Move Recurring Payments
If you’re going to close an account, you need to change the payment method for any recurring charges set to that card. I have one monthly charge for my Chase Ink Preferred, so I must move that to another card.
Shift Your Credit Limit
If you have another Chase card, you can ask if they will move your current credit limit to one of your other cards. I believe this is only available for business-to-business cards or between personal cards, meaning you can’t move the credit limit from your Ink card to your Sapphire Preferred or vice versa.
Keep Checking Your Account
While the account will be closed, it should remain online. This way, you can make sure no charges are showing on the account, like recurring charges you forgot about. Also, if you cancel your card near the renewal date, you want to be sure that the annual fee wasn’t charged to your account.
Final Thought
When canceling a credit card, it’s important to take several steps to ensure a smooth process. This includes transferring or using any reward points, paying off the balance, moving recurring payments to another card, shifting credit limits if possible, and keeping a close eye on the closed account to monitor for any unexpected charges. By being proactive, you can minimize any potential issues that may arise when canceling a credit card.
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