Having a credit card in your wallet is a great way to build healthy credit, which will open the doors to many financial products, including loans and mortgages. Credit cards also make online shopping and booking travel easy.
But there may come a time when you no longer have any use for your credit card and may want to cancel it. But the question is, can your National Bank credit card be cancelled online?
Why Cancel Your Credit Card?
You may have a very good reason to close out your National Bank credit card, including one of the following:
- Your credit card was lost or stolen
- Your credit card has been used fraudulently
- You haven’t been using your credit card lately
- Your credit card has a high annual fee and APR
- Your credit card doesn’t offer rewards for expenditures
- You want to cut back on your spending
- You need to pay off your mounting debt
Important Steps To Take Before Cancelling Your National Bank Credit Card
No matter what your reason may be for wanting to cancel your credit card, there are a few important steps you should take first.
Pay Down Your Outstanding Balance
You won’t be able to cancel your credit card until the balance owing is paid off. Otherwise, the outstanding balance could be listed as a default on your credit report. In turn, your credit score could suffer.
Spend Any Remaining Points
If the credit card you are cancelling is a rewards card, make sure that any remaining points are redeemed before you close the account. Otherwise, you’ll lose those points. Alternatively, you may transfer the points to another credit card, if your intention is to close out your current credit card and take out another in its place.
Inform Authorized Cardholders
It’s common for other family members to be on the same credit card account. If that’s the case for you, be sure to inform them of your intention to cancel the credit card. Once the account is formally closed, collect the other cards and dispose of them securely.
Cancel Recurring Payments
Many subscription services and bills are paid automatically by leaving your credit card on file. Make sure to update your credit card information accordingly to avoid any interruption in services.
Go Over Your Final Credit Card Statement
Make sure to look over your final credit card statement carefully to check for any incorrect charges on the account before it’s officially closed. If you find any, have them rectified and taken off, or else you’ll be stuck paying for them unnecessarily.
Put The Card Away Before The Account Is Officially Closed
Resist the temptation to make one final transaction before the credit account is closed. If you are the type to give in to the temptation to spend, take the card out of your wallet and put it somewhere that would make it inconvenient for you to use it.
Can You Close Your National Bank Credit Card Account Online?
You won’t be able to cancel your National Bank completely online just by clicking a few buttons. Instead, you can initiate the cancellation process by submitting a request to close your credit card account online. Alternatively, you can call customer support at 1-888-622-2783 to cancel your credit card via telephone.
If you cancel your card by phone, take note of the time and date of your conversation, and mark down the name of the person you spoke with. Further, you’ll want to obtain written confirmation of the credit card cancellation to keep for your records, then cut up your card and dispose of it securely.
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READ ARTICLECan Cancelling A Credit Card Can Affect Your Credit Score?
Having a good credit score can afford you plenty of financial freedoms and products. With a good score, your chances of securing a mortgage, car loan, personal loan, and credit card are much greater than a low credit score. But can canceling a credit card harm your credit score?
Yes, it is possible your credit score can take a hit when you cancel a credit card. Just keep in mind that everyone’s credit score is different and reacts differently. Cancelling a credit card may affect your score differently than someone else who cancels a card.
Your Credit Utilization Ratio May Be Impacted
Credit bureaus look at a variety of factors when calculating your credit score and credit utilization is one of them. Your credit utilization ratio is a measure of the amount of credit available to you compared to how much of that credit you use.
If the credit limit on your credit card is $10,000, for instance, and you spend $8,000 one month, your credit utilization ratio would be 80%. But if you only spend $1,000 that month, the ratio would be 10%. Lower credit utilization ratios are better for your credit score than higher ratios. It’s generally recommended that your credit utilization ratio should be no more than 30% to keep your credit score up.
But cancelling a credit card — particularly one that has a high credit limit available to you — can increase your credit utilization ratio by reducing your credit availability. It’s possible this will have a negative impact on your credit score. Just keep in mind that everyone’s credit scores react differently.
The Number Of Credit Accounts Will Be Reduced
Credit bureaus also like to look at the number of credit accounts you have, as well as how old they are. Generally speaking, a mix of different credit accounts is a good thing for your credit score. And the older they are, usually the better.
If the credit card you are cancelling is one of your older accounts that has been in good standing, you could be hurting your credit score. Taking a credit card out of the mix will leave one less credit account on your profile, which will also lower the average age of all your accounts.
Having said all that, it may still be a better idea to cancel your National Bank credit card if your debt is getting out of hand and you’re unable to make timely payments every month. In this case, your credit score may be affected more negatively than it would by cancelling your card.
Final Thoughts
If you have a valid reason to cancel your National Bank credit card, be sure to take the necessary steps to close the account securely. And before you cancel the card, there are a few things you’ll need to take care of first. While you may be able to submit your request to cancel online, you may have to eventually get on the phone to officially cancel your card.
