This may have also happened to you when applying for a credit card, getting approved, and realizing it’s not the best option.
In this case, you will certainly want to get rid of that card and obtain another one that suits your needs and spending patterns.
Sometimes, you get approved for a credit card of your choice, but the issuer closes your account. It’s important to understand if a credit card can be canceled after approval.
We will help you understand this in this article. Keep reading for more information.
What does it mean to be approved for a credit card?
Some people consider pre-approval equivalent to credit card approval, but these terms are a bit different.
Banks or card issuers may send offers for pre-approved credit cards when you meet basic eligibility criteria.
However, the final decision is made by the issuers when you apply for the card, and they thoroughly analyze your credit profile.
On the other hand, approval is the confirmation that you will receive a certain credit card.
When you apply for a credit card, the issuer checks your basic eligibility, income, credit score, etc., and approves or rejects your application.
Only if you meet all the requirements, you will get approved for a credit card.
Is it possible to cancel a credit card after approval?
Yes, it is possible to cancel a credit card after being approved. Both the card issuer and the cardholder have the right to cancel a credit card if they find it appropriate. Let’s understand both cases in detail:
Getting approved for a credit card doesn’t mean you will always be able to use it, especially if you don’t act responsibly.
Card issuers may approve your application, but if you don’t use the card responsibly, they may consider you a high-risk borrower.
If you frequently delay or miss credit card bill payments, there’s a high chance the bank might close your card or reduce the credit limit.
So, if you want to avoid credit card closure, make sure to pay all bills on time and maintain a good credit score so that over time, you can get better offers.
From the cardholder’s side
If you’ve just received approval for a credit card and realize it’s not a good fit for you, it’s always possible to cancel the card by contacting the issuer.
Just ensure there’s no outstanding balance on the credit card. It’s also possible that you got approved for one credit card and receive a better offer from another issuer.
In this case, you can try keeping both accounts if you believe you can manage multiple cards.
This will help maintain a healthy credit utilization rate, which will further improve your credit score. Otherwise, simply request the card issuer to close the account.
Closing a credit card is not recommended unless it’s truly unnecessary. If your current card doesn’t have a very high annual fee, consider using it in conjunction with another credit card.
Closing a credit account affects two important factors in determining your credit score: credit utilization rate and average age of credit accounts.
So, keep this in mind whenever considering canceling a credit card account.
This may have also happened to you when applying for a credit card, getting approved, and realizing it’s not the best option.
In this case, you will certainly want to get rid of that card and obtain another one that suits your needs and spending patterns.
Sometimes, you get approved for a credit card of your choice, but the issuer closes your account. It’s important to understand if a credit card can be canceled after approval.
We will help you understand this in this article. Keep reading for more information.
What does it mean to be approved for a credit card?
Some people consider pre-approval equivalent to credit card approval, but these terms are a bit different.
Banks or card issuers may send offers for pre-approved credit cards when you meet basic eligibility criteria.
However, the final decision is made by the issuers when you apply for the card, and they thoroughly analyze your credit profile.
On the other hand, approval is the confirmation that you will receive a certain credit card.
When you apply for a credit card, the issuer checks your basic eligibility, income, credit score, etc., and approves or rejects your application.
Only if you meet all the requirements, you will get approved for a credit card.
Is it possible to cancel a credit card after approval?
Yes, it is possible to cancel a credit card after being approved. Both the card issuer and the cardholder have the right to cancel a credit card if they find it appropriate. Let’s understand both cases in detail:
Getting approved for a credit card doesn’t mean you will always be able to use it, especially if you don’t act responsibly.
Card issuers may approve your application, but if you don’t use the card responsibly, they may consider you a high-risk borrower.
If you frequently delay or miss credit card bill payments, there’s a high chance the bank might close your card or reduce the credit limit.
So, if you want to avoid credit card closure, make sure to pay all bills on time and maintain a good credit score so that over time, you can get better offers.
From the cardholder’s side
If you’ve just received approval for a credit card and realize it’s not a good fit for you, it’s always possible to cancel the card by contacting the issuer.
Just ensure there’s no outstanding balance on the credit card. It’s also possible that you got approved for one credit card and receive a better offer from another issuer.
In this case, you can try keeping both accounts if you believe you can manage multiple cards.
This will help maintain a healthy credit utilization rate, which will further improve your credit score. Otherwise, simply request the card issuer to close the account.
Closing a credit card is not recommended unless it’s truly unnecessary. If your current card doesn’t have a very high annual fee, consider using it in conjunction with another credit card.
Closing a credit account affects two important factors in determining your credit score: credit utilization rate and average age of credit accounts.
So, keep this in mind whenever considering canceling a credit card account.
Check out here the best credit cards to apply for
If possible, you can also request your current card issuer to upgrade your credit card to another of your choice.
If you have any questions about the information provided above, feel free to ask in the comments section below!
If possible, you can also request your current card issuer to upgrade your credit card to another of your choice.
If you have any questions about the information provided above, feel free to ask in the comments section below!