Can I Cancel The Credit Card After Submission?

Last Updated on May 4, 2025 by Amrita Das

Applying for a credit card is often a carefully planned move, especially when you’re tracking sign-up bonuses, reward points, or credit-building opportunities. But what happens if you change your mind after clicking “Submit”? Is it possible to cancel your credit card application?

In this blog post, I will share how you can cancel a credit card application, what alternatives you have if it’s too late, and the potential impact on your credit score. So, let’s read this guide, “Can I Cancel The Credit Card After Submission?”

Table of Contents

Why Might You Want to Cancel a Credit Card Application?

Submitting a credit card application isn’t something to take lightly. There are several reasons why you may regret applying and consider cancelling:

Wrong Card Chosen

Sometimes credit card issuers have multiple versions of cards with similar names, making it easy to apply for the wrong one. For example, a card may seem ideal until you realize it doesn’t align with your intended purpose, like earning specific types of rewards.

A Better Offer Was Found

Discovering a credit card with a more lucrative sign-up bonus or rewards program right after you apply can leave you rethinking your decision.

Reassessment of Costs

Perhaps you realize the annual fee and associated costs don’t fit your budget. High fees may outweigh the benefits the card offers.

Prevention of a Hard Credit Inquiry

Each new credit card application triggers a hard inquiry on your credit report, which can lower your credit score. If avoiding a hard inquiry is urgent, you might reconsider your application.

Change in Financial Needs

Upon reflection, you may decide you don’t actually need the card. Applying for a credit card that you might never use can unnecessarily complicate your credit file.

Steps to Take Before Canceling Your Credit Card

If you’re certain canceling is the right move, make sure you take these critical steps first:

Review the Card Terms

Read through the details of your new card. Did you receive the credit limit and APR (annual percentage rate) you expected? If not, consider contacting the card issuer to negotiate better terms before deciding to cancel. Many issuers offer no-fee card options or other benefits as an alternative.

Evaluate Alternatives

Instead of canceling outright, ask if the issuer allows you to:

Downgrade the Card: Transition to a no-annual-fee version of the same card. This can help preserve your credit history without any financial commitments.
Adjust Features: Some issuers may modify terms, such as lowering APR or waiving an annual fee.

Settle Any Outstanding Charges

If you’ve received your card and made any initial transactions, pay off the balance and confirm there are no pending charges. This ensures you won’t face residual interest.

Consider Future Credit Needs

Keep in mind how cancelling may affect you if you need other forms of credit (e.g., a mortgage or car loan) soon. A lower credit score could lead to higher loan interest rates.

Can You Actually Cancel a Credit Card Application?

The ability to cancel largely depends on where your application is in the approval process.

If the Application Decision Is Pending

If the issuer hasn’t yet approved or denied your application, you may have a chance to cancel. Decisions for online applications are often nearly instant, but some issuers take longer to review applications that require additional verification. A paper or mail-in application has an even larger window of opportunity to cancel while it’s in transit.

Steps to Cancel a Pending Application:

Check the Status: Log into your online account or use the issuer’s app to see if the application is still under review.
Call Customer Support: Contact the issuer immediately, provide the necessary details (full name, date of birth, Social Security number), and request to cancel your application.

Application Has Been Approved

If your card has already been approved and issued, follow these steps to cancel it:

Contact the Issuer:

Call the number provided on the back of the card or in your approval email.
Clearly state that you wish to cancel the card.

Verify Balance and Charges:

Ensure your account balance is $0 and no additional payments are pending.

Request Confirmation:

Ask for a written or email confirmation of the account closure for documentation purposes.

Check Your Credit Report:

After a few weeks, verify your credit report to confirm the account has been closed.

If the Application Is Denied

If the issuer denies the application, you can’t “cancel” it but can avoid further action. The hard inquiry will still remain on your credit report, but you won’t need to worry about closing an account.

How to Cancel a Credit Card You Already Have?

If you’ve decided that it’s time to cancel a credit card, it’s important to follow the proper steps in order to avoid any potential issues. Here is a step on how to successfully cancel a credit card you already have.

Contact Customer Service – The first step is to reach out to the customer service department of your credit card issuer. This can usually be done by finding their contact information on their website or by calling the number listed on the back of your credit card.
Verify Your Identity – To ensure that no one else is trying to cancel your credit card, customer service may ask you several security questions before proceeding with the cancellation process. Be prepared to provide personal information, such as your full name, credit card number, and date of birth.
Request Cancellation – Let the customer service representative know that you wish to cancel your credit card. They may ask for a reason for cancellation, but you are not obligated to provide one.

Why Cancelling a Credit Card Requires Careful Consideration

While canceling a credit card might feel freeing, it can have lasting effects on your financial profile. Here’s why:

Impact on Credit Utilization: Your credit utilization ratio is the amount of credit you’re using compared to your total available credit. Canceling a card decreases your overall credit limit, potentially increasing your utilization ratio and lowering your credit score.
Shortening Your Credit History: Credit history plays a significant role in determining your credit score. Closing an account may reduce the length of your credit history, especially if the card you’re canceling is one of your older accounts.
Financial Planning: Ensure you’re not canceling an account for emotional reasons, such as frustration over high fees or a single bad experience. Instead, focus on whether cancellation aligns with your overall financial goals.

That doesn’t mean you shouldn’t close a credit card account. It just means knowing the right way to do it matters

When Cancellation Isn’t Possible

If the credit card issuer has already processed and approved your application, cancellation might not be an option anymore. But you still have alternatives to minimize potential downsides or make the most of the situation.

Option 1: Keep the Card

Since the hard inquiry on your credit report is already complete, keeping the credit card may be a practical decision. It could benefit you in the following ways:

Build or maintain good credit: Use the card responsibly, pay your balances on time, and keep your credit utilization ratio low to maintain or improve your credit score.
Leverage available perks: Review the benefits that come with the card, such as cashback, travel rewards, or discounts that could add value to your finances.

Option 2: Product Switch

If the credit card isn’t a fit for you, some issuers allow product switching. For instance, you may be allowed to downgrade a high-annual-fee card to a simpler, more affordable one while keeping the same credit account. To explore this option:

Reach out to your card issuer and discuss your preferences.
Ask about product-switching policies and how it may impact your account.

Option 3: Cancel the Card After Approval

For those determined to close the card even after approval, ensure you understand the risks:

Credit score impact: Canceling an approved card can increase your credit utilization ratio (a key factor in your credit score) and lower your account age, both of which could negatively affect your credit scores.
Annual fees: If the card has an annual fee, determine whether you’re still liable for the charge or if it can be waived.

While you can cancel, it’s essential to balance financial goals and your overall credit health before moving forward.

Risks of Canceling a New Credit Card

Canceling a newly approved credit card may seem harmless, but it can cause lasting impacts. Below are the key areas where canceling could affect your credit and financial standing.

You Could End Up Paying Upfront Fees

Many credit cards with valuable perks and benefits charge an annual fee. Often, these fees are applied to your account as soon as you’re approved, so even if you don’t use the card, you’ll likely need to pay this fee before closing the account.

Depending on the card, you could also accrue interest charges or pending balances that may need to be cleared before cancellation.

What to Do: Before canceling, confirm with your card issuer whether fees have already been applied. Some issuers may waive the annual fee if you close an account quickly after approval, but this is not guaranteed.

Your Credit History May Be Affected

Opening and quickly closing an account could shorten the average age of your credit accounts. Since credit age makes up about 15% of your credit score, frequent cancellations can have a compounding effect.

More importantly, applying for the card has already triggered a hard credit inquiry. Even if you cancel the card, that inquiry remains on your credit report, potentially lowering your score by a few points.

What to Do: To minimize the impact on your credit, think carefully before applying for a card in the first place.

It Could Signal Risk to Future Lenders

When an account is closed within weeks or even days of approval, it may raise red flags for lenders. This behavior can lead them to suspect “credit churning,” a practice where people open cards purely for rewards and cancel them soon after.

Lenders typically view credit churners as high-risk users, which can make it harder for you to qualify for future loans or premium credit cards.

What to Do: If you apply for a card by mistake, consider keeping the account open and using it sparingly instead of closing it immediately. Responsible usage can help mitigate any potential suspicions.

Your Available Credit Will Decrease

Closing a new credit card account will reduce your overall available credit, which can have a negative effect on your credit utilization ratio. This ratio measures the amount of credit you’re using compared to your total available credit and accounts for 30% of your FICO score.

For example, if you’re using $2,000 out of a $10,000 credit limit across all accounts and close a card with a $4,000 limit, your new utilization ratio will jump from 20% to 33%—which can harm your credit score.

What to Do: If maintaining a lower utilization ratio is important for your credit health, reconsider canceling the card or reduce your spending on other credit lines to offset the impact.

You Might Miss Out on Benefits

Some credit cards come with great perks, such as travel rewards, cash back, or discounts on purchases. By canceling your card, you forfeit access to these additional benefits.

Even if the card doesn’t meet all your expectations, it could still provide value in ways you didn’t initially consider. For instance, keeping the card open can build your credit history and improve your utilization ratio.

What to Do: Before canceling, take a closer look at the card’s features to see if it offers any unexpected value that makes it worth keeping.

Can I Cancel The Credit Card After Submission? FAQs

Q: Can You Cancel Before Activating the Card?

A: Yes, it’s possible to cancel a card you’ve been approved for and haven’t activated. However, even if you never use the card, the account will still be reported to the credit bureaus unless it’s closed. Closing the account without activation still affects factors like your credit age and credit utilization ratio.

Q: Is it possible to cancel a credit card if it is no longer needed?

A: Yes, it is possible to cancel a credit card that is no longer needed. There are various reasons why someone may consider cancelling a credit card, such as not receiving any benefits from it, increasing debt or not planning on applying for more credit in the near future.

Q: What happens if I decide to cancel my credit card?

A: When you choose to close your credit card account, you will not incur any new charges. Additionally, there is no fee associated with closing your account, and your monthly and annual fees will remain unchanged while you pay off your remaining balance.

However, it’s important to note that if you do have any fees associated with your credit card, you will still be responsible for paying them until your balance is fully paid off.

Q: When Is Canceling Worth It?

A: While canceling a new credit card is generally something to avoid, there are situations where it might be the right move. These include:

High Fees You Can’t Justify: If the annual fee or other charges outweigh the card’s benefits and you’ve just started your credit-building journey, cancellation may make sense.
Risk of Overspending: If opening a new card tempts you to spend beyond your means, canceling could protect your financial health.
Strong Credit Report: If you already have excellent credit, you’re more likely to weather the minor impact of a hard inquiry and reduced credit age.

Q: What steps to take to reduce the risk of needing cancelation?

A: While mistakes happen, there are steps you can take to reduce the risk of needing to cancel future applications:

Research thoroughly: Before applying, compare credit card options, read reviews, and ensure the card aligns with your financial goals and lifestyle.
Check pre-approval offers: Many issuers provide pre-approval options that allow you to see your eligibility without impacting your credit score.
Limit applications: Avoid applying for multiple cards at once to reduce unnecessary hard inquiries on your credit report.

Can I Cancel The Credit Card After Submission? Final Thoughts

Canceling a credit card application is possible, but timing is critical. Act quickly if you decide to withdraw your application while it’s pending. Approved applications become more complex to reverse and require careful consideration of any credit score impacts, fees, and potential long-term consequences.

If unsure, keeping the card and using it responsibly will likely bolster your credit health. Credit decisions should always align with your broader financial goals, and thorough research can help you avoid needing to cancel applications altogether.

Can I Cancel The Credit Card After Submission? Reference:

https://www.bankrate.com/credit-cards/advice/declining-new-credit-card/

https://www.capitalone.com/learn-grow/money-management/cancel-credit-card-application/

https://www.cnet.com/personal-finance/credit-cards/credit-card-cancelled-after-being-approved/