American Express credit cards are one of the most beneficial cards available, but there might come a time when you will have to cancel the card. It may be because you want to reduce the number of yearly fees, simplify your finances, or change to another credit card. Cancelling your American Express credit card, if done properly, is quite easy. Here in this guide, let’s discuss how to cancel an American Express credit card effectively with the least impact on your credit score.
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Things to Consider Before Cancelling Your Amex Card
Before you proceed with canceling your American Express credit card, consider these key factors:
1. Check Any Outstanding Balance
Be sure your balance is fully paid. American Express will not allow you to close your account until all debt is paid unless transfers are done to another card.
2. Use Your Rewards Points
Make sure to spend any remaining points left on the Amex before canceling. After cancellation, you will probably lose those points for good.
3. Consider Downgrading Instead of Canceling
If this cancellation is due to an annual fee, perhaps you could downgrade the card to a no-fee version so that you could maintain your history with Amex.
4. Understand the Impact on Your Credit Score
Closing a credit card can affect how the credit utilization ratio and other areas of your credit history balance out. That could, in turn, lead to a decrease in the rating.
How to Cancel an American Express Credit Card
If you’ve decided to cancel your American Express credit card, follow these simple steps:
Step 1: Contact American Express Customer Support
- Call the customer service number on the back of your card.
- Alternatively, visit the American Express website and use their secure chat feature.
Step 2: Verify Your Identity
Amex representatives will ask for the following:
- Your full name
- Credit card number
- Security details (such as billing address or last transactions)
Step 3: Request Cancellation
Think through the reasons behind the request for cancellation you are requesting. The representative may try to give you reasons for keeping your card, so make sure to think about them carefully before accepting or rejecting those options.
Step 4: Get a Confirmation
Ask for a written confirmation via email or mail to ensure your request has been processed.
Step 5: Destroy Your Physical Card
Once your card is canceled, cut it up and dispose of it securely to prevent fraud.
Related read:
Alternative Ways to Cancel an Amex Card
If you prefer not to call, you can also cancel your American Express credit card via:
- Live Chat: Log into your Amex account and use the online chat service.
- Mail: Send a written cancellation request to American Express Customer Service.
Will Canceling an Amex Card Affect Your Credit Score?
Yes, closing an Amex card may impact your credit score due to:
- Credit Utilization: If you happen to have some outstanding credit elsewhere, then closing that one account will just increase your utilization ratio.
- Credit History Length: If the Amex card happens to be one of the oldest accounts in your portfolio, it will certainly reduce your credit history.
To minimize the impact, consider paying down balances on other credit cards or keeping other older accounts open.
Can You Cancel an American Express Credit Card Online?
Yes, you can cancel via live chat on the Amex website or by calling customer service.
Can You Cancel an Amex Card and Reopen It Later?
By and large, an Amex card cannot be reopened once it is canceled. However, there may be chances to apply for a new account in the future.
Is There a Fee for Canceling an American Express Credit Card?
No, American Express does not charge a fee for canceling a credit card.
For more details on Amex card policies, visit the official American Express website.
Conclusion
Canceling an American Express card is straightforward, but one must consider whether the cancellation may affect your finances and credit score. Be sure to redeem rewards, pay any balances, and consider downgrading before deciding to cancel. Closing accounts is accomplished with great ease as long as these checks are observed to protect your financial health.
