Closing an American Express credit card can seem like a daunting task, but with the right information and a clear plan, you can navigate the process smoothly. This comprehensive guide will walk you through every step, ensuring you're well-equipped to make an informed decision and execute it effectively.
How to Close Your American Express Credit Card: A Step-by-Step Guide
Step 1: Are You Absolutely Sure You Want to Close Your Amex Card? Let's Think This Through Together!
Before you pick up the phone or click any buttons, let's take a moment to genuinely consider if closing your American Express card is the best course of action for your specific financial situation. Closing a credit card, especially one with a long history like an Amex, can have implications for your credit score.
Why are you considering closing it?
Are you paying high annual fees and not utilizing the benefits?
Do you have too many credit cards and want to simplify?
Are you worried about overspending?
Are you dissatisfied with Amex's services?
Are you trying to reduce your overall credit limit for a specific financial goal (like a mortgage application)?
Have you explored alternatives?
Could you downgrade to a no-annual-fee Amex card? This preserves your credit history with them.
Have you considered using the card less rather than closing it?
Are there any retention offers available if you call Amex and express your intent to close? Sometimes they'll offer statement credits or bonus points to keep you.
Seriously, take a few minutes right now to ponder these questions. It's a significant financial decision, and we want to make sure you're making the most informed choice.
Step 2: Settle All Outstanding Balances – Zero is the Magic Number
This is an absolutely critical step. You cannot close an American Express credit card (or any credit card, for that matter) if it has an outstanding balance.
Check your latest statement: Access your American Express online account or refer to your most recent paper statement to find your current balance.
Pay it in full: Make a payment for the entire outstanding amount. Ensure the payment has fully posted to your account before proceeding. This usually takes a few business days. Don't rely on a pending payment.
Account for pending transactions: Double-check for any recent purchases that might still be pending. If so, wait for them to post and then pay them off as well. You want the balance to be a definitive zero.
Consider small residual amounts: Sometimes, small interest charges or fees might accrue even after you think you've paid it off. It's a good idea to pay a slightly larger amount than your current balance (e.g., an extra $1 or $5) to ensure you truly have a zero or even a small credit balance. This avoids any surprises.
Step 3: Redeem or Transfer All Rewards Points – Don't Let Them Go to Waste!
American Express Membership Rewards points are valuable, and you don't want to lose them!
Understand the forfeiture rules: Generally, once your account is closed, any unredeemed Membership Rewards points associated with that card will be forfeited.
Explore your redemption options:
Transfer to airline or hotel partners: This often offers the best value. Check if you have enough points for a flight or hotel stay you've been planning.
Statement credit: While typically a lower redemption value, it's a straightforward way to use your points.
Gift cards: Another easy option, though value can vary.
Shopping: You can use points at various retailers, but again, evaluate the value.
Consider combining points: If you have other American Express cards, you might be able to pool your Membership Rewards points into one account. Call Amex to inquire about this possibility before closing the card. This can be a great way to save your points.
Redeem well in advance: Don't wait until the last minute. Allow time for the redemption to process.
Step 4: Cancel Any Recurring Charges or Subscriptions Linked to the Card
This is a step often overlooked but incredibly important to avoid future headaches.
Review your past statements: Go back several months (at least 6-12) through your American Express statements. Look for any recurring charges.
Identify common culprits:
Streaming services (Netflix, Spotify, Hulu, etc.)
Gym memberships
Utility bills (if you have them on auto-pay)
Online subscriptions (SaaS tools, cloud storage)
Insurance premiums
App subscriptions
Update your payment information: For each identified recurring charge, log into the respective service and update your payment method to a different credit card or bank account. Do not assume the company will automatically update it or notify you. If you don't update them, the payments will fail once your Amex card is closed, potentially leading to service interruptions or late fees.
Step 5: Notify American Express of Your Intent to Close the Account
Now that you've prepared, it's time to contact Amex.
The best method: Phone Call
Calling American Express directly is generally the most efficient way to close your account. It allows for immediate confirmation and the opportunity to address any last-minute questions or issues.
Find the right number: Look on the back of your credit card for the customer service number, or find it on the official American Express website.
Be prepared to verify your identity: You'll likely be asked for your card number, security code, and other personal information to confirm you are the account holder.
State your intention clearly: Simply say, "I would like to close my credit card account."
Be polite but firm: Customer service representatives may try to offer you incentives to keep your account open (retention offers). It's okay to listen, but if your decision is final, politely decline.
Ask for confirmation: Request a confirmation number or that a letter be sent to you confirming the account closure.
Alternative (less recommended) method: Online Chat
Some users report success closing accounts via online chat, but it's not universally available for all account types or may require additional steps. A phone call is more direct.
Avoid just cutting up the card: Simply cutting up your card does not close the account. You must officially notify American Express.
Step 6: Get Written Confirmation of Account Closure
This step is about protecting yourself and having a record.
Request an email or letter: When you're on the phone with the representative, specifically ask them to send you a written confirmation (either via email or postal mail) that your account has been closed and the balance is zero.
Keep the confirmation: Store this confirmation securely with your other important financial documents. This serves as proof in case of any future discrepancies.
Check your credit report: After a few weeks (typically 30-60 days), check your credit report (from Equifax, Experian, and TransUnion) to ensure the American Express account is reported as "closed by grantor" or "closed by consumer" with a zero balance.
Step 7: What Happens Next and Monitoring Your Credit
Closing a credit card can impact your credit score, both immediately and over the long term.
Impact on credit utilization: Closing a card reduces your total available credit. If you carry balances on other cards, your credit utilization ratio (total balance / total available credit) will increase, which can negatively affect your score. Try to pay down other balances before closing a card if this is a concern.
Impact on length of credit history: Older accounts contribute positively to your average length of credit history. Closing an old account might slightly reduce this average over time, although the account will still appear on your report for up to 10 years after closure.
Hard inquiry removal: The hard inquiry from when you opened the card will remain on your report for two years, but closing the account doesn't remove it.
Monitor your statements (if applicable): Even after closure, keep an eye out for any final statements that might arrive, especially if there were any residual small charges or credits.
Annual fees: If you close your card before the annual fee posts for the new year, you won't be charged. If it has already posted, American Express typically refunds the annual fee proportionally if you close the account within 30-60 days of the fee appearing. Always confirm this with the representative when you call.
Congratulations! You've successfully navigated the process of closing your American Express credit card. Remember, this is a proactive step in managing your financial health.
10 Related FAQ Questions
How to check my American Express credit card balance?
You can check your American Express credit card balance by logging into your online account on the Amex website or mobile app, or by calling the customer service number on the back of your card.
How to redeem American Express Membership Rewards points?
To redeem American Express Membership Rewards points, log into your Amex online account, navigate to the Membership Rewards section, and choose from options like transferring to travel partners, statement credits, gift cards, or shopping.
How to find my American Express customer service number?
Your American Express customer service number is typically located on the back of your physical credit card, or you can find it on the official American Express website under the "Contact Us" section.
How to update recurring charges after closing an Amex card?
To update recurring charges, you must individually log into each service or subscription website (e.g., Netflix, gym membership portal) and change the payment method to a different credit card or bank account.
How to get a confirmation of American Express account closure?
When you call American Express to close your account, specifically request an email or postal letter confirming the account closure and a zero balance.
How to know if my Amex card has a pending balance?
You can see pending transactions by logging into your American Express online account; these transactions will usually be listed separately from your posted balance.
How to avoid losing American Express rewards points when closing a card?
To avoid losing rewards points, you should redeem them all before closing the account, or if you have other Amex cards, inquire about combining or transferring your points to another active Amex account.
How to close an American Express card without affecting my credit score too much?
To minimize the impact on your credit score, pay down balances on other cards to keep your credit utilization low, and consider if downgrading to a no-annual-fee card is an option instead of full closure.
How to get a refund for an annual fee if I close my Amex card?
If you close your Amex card within 30-60 days of an annual fee being charged, American Express typically provides a prorated or full refund of the annual fee; confirm this with the customer service representative when you call to close.
How to check if my American Express account is officially closed?
After closing your account, check your credit report from the major credit bureaus (Experian, Equifax, TransUnion) after 30-60 days to confirm the American Express account is reported as "closed" with a zero balance.
