Can I Cancel A Credit Card Application?

Applying for a new credit card and then realizing it’s not what you want can turn an exciting moment into one that’s stressful.

You might be able to cancel a card application depending on where it is in the approval process, starting with contacting the credit card issuer. But it’s not the only solution if you regret clicking “Submit.” Here’s how to cancel a credit card application, what to do if you can’t and whether you should cancel a new card you no longer want.

When to cancel a credit card application

There are a few situations you may run into in which you might want to cancel your credit card application. Sometimes, credit card issuers offer two credit cards with similar names, making it easy to choose the wrong one. This can be common with cards aimed at those with fair or bad credit or when an issuer decides to update card names.

Or maybe you found a better sign-up bonus on another card or even a limited-time offer on the same card shortly after applying. If the welcome offer was a deciding factor for choosing the card, it might be worth it to try to cancel.

Another reason to cancel a credit card application is if you realize you don’t need the card. Whether its due to you having cards that cover most of your expenses, realizing the annual fee is too high for your budget or wanting to avoid the hard inquiry on your credit report, an unnecessary card can do more harm than good to your finances.

How to cancel a credit card application

No matter what the reason, it’s best to make sure that you cancel as soon as possible. Canceling a credit card application is possible, but you’ll need to act fast. Most credit card issuers conduct a hard check on your credit report within a few minutes of applying. Each new credit application registers a hard credit inquiry on your credit report, which can lower your credit score by up to 10 points. That might not sound like much, but keeping hard inquiries to a minimum is to your advantage. And after the application is approved or denied, it’s too late to cancel.

First, check the status of your application by logging in to the online account or app you used to apply. If the decision is still pending or under review, you may be able to cancel your application by calling customer support and requesting your application to be canceled.

Unfortunately, it’s likely your credit card application will be approved or denied before you have the opportunity to cancel it. Credit issuers make application decisions very quickly — often within minutes or even immediately, if you’re preapproved — so when you apply for a new credit card, it’s important to make sure you’re applying for a card you really want. Otherwise, you’ll waste a precious hard credit check and risk losing a few points from your credit score.

What to do if you can’t cancel a credit card application

If you missed your window to cancel your card application, you have three options to make the most of the situation.

1. Use the new credit card

Even if it doesn’t have the best credit card rewards or the sign-up bonus you saw on another credit card, you can still benefit from keeping and using the credit card.

Using the new card can add to your credit history when you spend responsibly. As long as you’re mindful of making timely payments and maintaining a credit utlization ratio under 30 percent, you could see improvements to your credit score.

If you’re concerned about accumulating debt and sticking to healthy spending habits, request that a high credit limit be lowered to help curb spending. By using your credit card responsibly and paying off your statement balances before your grace period expires, you won’t have to pay interest on your purchases.

2. Request a credit card swap

If your new credit card charges an annual fee, for example, you could request to switch credit cards to a no-annual-fee version of the same card through the customer service line. You might even be able to swap a travel rewards credit card for a cash back credit card, as long as both cards are offered by the same issuer. You could still pay the annual fee for the year, but you’ll be off the hook going forward.

Requesting a swap typically doesn’t trigger another credit check unless you want to switch to a more exclusive card with higher credit requirements. To take advantage of this option, you simply need to contact your card issuer’s customer support and ask.

3. Cancel the card

If you don’t want to keep or use the new credit card, and there are no other credit cards from the credit issuer to fit your needs, your last option should be to cancel the new credit card.

To do that, call the card’s customer service number and talk to a representative about how to close your account. Tell them you want to cancel your card and make sure there will be no other fallout from this closure. For one, if this is a card that charges an annual fee, ask whether you’re responsible for paying this fee. Also, pay off any outstanding balance on the card and verify that there are no pending charges to avoid any additional interest.

Keep a record of this interaction and ask for confirmation of the closure. The card issuer should send you a follow-up letter about the account closing. You could also check your credit report to see that the account has been closed.

Risks of canceling a newly approved credit card

Canceling a new credit line might be the right move if you’re worried about going into debt you can’t pay off. Or if you have a strong credit history and credit score high enough to handle the impact without diminishing your ability to qualify for other cards.

If you missed the short window to cancel your application and are considering closing your newly approved credit card, weigh how it might affect your overall credit and use ratios.

• You may need to pay upfront fees first. If you mistakenly signed up for a credit card with an annual fee, it’s likely to show up as an immediate charge to your new account. That means you’re responsible for paying off the annual fee plus any accrued or residual interest before you can close the card.
• Closing your card can skew the length of your credit history. The age of your credit history makes up 15 percent of your credit score, and part of that calculation is the age of all your credit accounts. A short account on your credit report could skew the calculation for this aspect of your score.
• It might signal risk for future lenders. Planning to get another credit card after closing this one? Closing a card quickly after opening tells potential lenders that you’re a higher risk for credit churning — or opening (and closing) cards solely to earn introductory offers. This can affect your chance of approval for a new card with better benefits and perks.
• It reduces your available credit. Canceling your new line of credit will reduce the total amount of credit available to you, which has negative effects on your credit score. Your credit utilization ratio accounts for 30 percent of your FICO credit score. Closing a new credit card could raise your credit utilization ratio and decrease your score.

How to cancel a newly approved credit card

To cancel a new credit card, start by checking your balance and then call your card issuer:

1. Make sure any outstanding balances on the credit card are paid off in full or transferred to another card.
2. Call the number on the back of your card and speak with a representative to request to close the account.
3. Request a certified letter from the card issuer confirming your request to cancel.
4. Check your credit reports with the three major credit bureaus — Experian, Equifax and TransUnion — to confirm that your account is reported as closed.
5. Destroy the credit card to prevent future fraud or misuse.

After you’ve successfully confirmed that the credit card is closed, you might be tempted to apply for a card with better terms, rewards and benefits soon after. Yet, it’s best to wait three to six months before applying for another card to increase your chance of being accepted.

The bottom line

Can you actually cancel a credit card application? Maybe — but only if you’re able to contact customer service before the bank or credit issuer makes an approval decision. In many cases, credit card applications are approved or declined within minutes, making it difficult to cancel an application in time.

If you apply for a credit card, are approved and decide you no longer want the card, you can request to swap the card for another card offered by the same issuer. Or cancel the new credit card — just be aware of potential negative effects on your credit score. Keeping the credit card and using it responsibly might be your best option.

Frequently asked questions

• Do I have to accept a credit card if I apply for it?
  

  Applying for a credit card is unlike a loan, where applying results in a loan offer that you can either accept or decline. Approval for the credit card is the offer itself, and by submitting an application, you’re accepting the terms of that credit card. However, just because you’re approved for the card doesn’t mean you’re required to keep it or use it. You can also choose to close the card if the benefits outweigh the consequences for you.

• Can canceling a new credit card affect my credit score?
  

  Yes, canceling a new credit card can have a negative impact on your credit score by affecting factors like your credit utilization and age of credit history.

• What can I do if I don’t want to cancel a new credit card?
  

  If you don’t want to cancel a new credit card, you can choose to keep the card and use it responsibly, or keep it and avoid using it to bolster your available credit. You could also request a credit card swap through your credit issuer’s customer service department and switch to a credit card that better suits your needs.