Considering closing your American Express card? It can feel like a big decision, but with the right information, it’s a straightforward process. This guide will walk you through every step, from understanding why you might close your card to what happens afterward. Let's get started!
Step 1: Reflect and Prepare
Before you even think about calling American Express, it's essential to understand why you want to close your card and to prepare for the process. This initial reflection can save you headaches later.
Why Are You Closing Your Card?
Are you looking to reduce your debt? Closing the card might seem like a good idea, but the underlying debt doesn't disappear. It's crucial to have a plan for repayment.
Are you trying to simplify your finances? Fewer cards can mean less to manage, which is a valid reason.
Is the annual fee too high? Many Amex cards come with substantial annual fees. If you're not getting enough value from the benefits to offset the fee, closing it might make sense.
Have your spending habits changed? Perhaps the card no longer aligns with your lifestyle or spending patterns.
Are you worried about fraud or security? If this is the case, contact Amex immediately to report the issue, as closing the card might not be the primary solution.
Understanding your motivation will help you navigate the next steps and ensure you're making the best financial decision.
Gather Your Information
Before you call, have the following handy:
Your American Express Card Number: You'll need this to identify your account.
Your Account Number (if different): Sometimes found on your statements.
Your Personal Information: This includes your full name, address, and potentially your Social Security Number (SSN) for verification.
A Recent Statement: This can help you confirm your current balance and any outstanding charges.
Step 2: Pay Off Your Balance and Redeem Rewards
This is a critical step. You cannot close an American Express card with an outstanding balance.
Clear Your Outstanding Balance
Pay in Full: The simplest way is to pay your entire outstanding balance before initiating the closure. This ensures a clean break.
Allow Time for Processing: If you make a payment, wait a few business days for it to fully process and reflect on your account before calling Amex. Calling too soon might show an outstanding balance, delaying the closure.
Consider Pending Transactions: Remember that transactions can sometimes take a day or two to post. Ensure all your recent purchases have gone through and are accounted for in your balance.
Redeem Your Rewards Points
American Express offers various reward programs, such as Membership Rewards. Do not forget to redeem your points before closing your account!
Check Your Balance: Log in to your American Express online account or call customer service to verify your exact points balance.
Explore Redemption Options: Amex offers a variety of ways to redeem points, including:
Travel: Booking flights, hotels, or car rentals through Amex Travel.
Statement Credits: Applying points directly to your statement to reduce your balance.
Gift Cards: Purchasing gift cards from various retailers.
Merchandise: Using points to buy products.
Transfer to Partners: Transferring points to airline or hotel loyalty programs.
Redeem Strategically: Some redemption options offer better value than others. For example, transferring to travel partners often yields the highest value per point. Take your time to make the most of your hard-earned rewards.
Step 3: Contact American Express
Once your balance is zero and your rewards are redeemed, you're ready to contact American Express directly.
Call Customer Service ️
The Best Method: Calling is generally the most effective way to close your account, as it allows for immediate confirmation and addressing any questions.
Find the Number: The customer service number is usually on the back of your card or on your monthly statement. You can also find it on the official American Express website.
Be Prepared for Questions: The representative will likely ask why you're closing the account. You don't need to offer a lengthy explanation, but a brief, honest reason (e.g., "I'm simplifying my finances," "The annual fee is too high") is usually sufficient. They might also try to offer you incentives to keep the card open, such as a retention offer or a lower annual fee. Be firm but polite if you've made up your mind.
Request Confirmation: Crucially, ask for confirmation that the account is closed. This could be a confirmation number or a written statement sent to your email or mailing address. Note the date and time of your call and the name of the representative you spoke with.
Alternative Methods (Less Common for Closure) ✉️
While calling is preferred, some may wonder about other options:
Online Chat: While Amex has online chat, it's less common for account closures, as they often require a phone call for security and verification purposes.
Mail: You can send a written request to close your account, but this is the slowest method and doesn't provide immediate confirmation. It's generally not recommended for this reason.
Step 4: What Happens After Closure?
Closing a credit card, especially one from a major issuer like American Express, has implications for your credit score and financial life.
Impact on Your Credit Score
Credit Utilization Ratio: Closing a card reduces your available credit. If you carry balances on other cards, your credit utilization ratio (the amount of credit you're using compared to your total available credit) will increase, which can negatively impact your credit score. If your utilization is low across all cards, the impact might be minimal.
Length of Credit History: The older your credit accounts, the better. Closing an old account, particularly if it's one of your oldest, can shorten your average credit age, which may also negatively affect your score.
Credit Mix: While less significant than utilization and credit history length, having a diverse mix of credit (e.g., credit cards, loans) is beneficial. Closing a card might slightly alter this mix.
It's important to monitor your credit score after closing an account. You can do this through free credit monitoring services or by requesting your credit reports.
Final Statements and Tax Documents ✉️
Final Statement: You will receive a final statement from American Express, even if your balance was zero. Keep this for your records.
Tax Forms (if applicable): If you earned significant rewards that were considered taxable income (e.g., certain signup bonuses), you might receive a tax form like a 1099-MISC.
Destroy Your Card ✂️
Once you've confirmed your account is closed, physically destroy the card. Cut through the magnetic stripe and the chip to prevent any unauthorized use.
Step 5: Monitor and Maintain
Even after closing your American Express card, it's wise to remain vigilant.
Check Your Credit Report
Regularly Review: Periodically check your credit reports from all three major bureaus (Experian, Equifax, and TransUnion) to ensure the account is correctly reported as "closed by grantor" or "closed by consumer" with a zero balance. You can get a free report annually from AnnualCreditReport.com.
Dispute Errors: If you find any discrepancies, dispute them with the credit bureau immediately.
Adjust Your Budget and Spending Habits ️
Re-evaluate: With one less card, re-evaluate your budget and spending habits. Ensure you're not inadvertently relying on other credit cards more heavily.
Financial Goals: Revisit your overall financial goals. Did closing this card help you get closer to them?
Frequently Asked Questions
How to check my American Express card balance?
You can check your American Express 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 in to your online account, navigate to the "Membership Rewards" section, and choose from available redemption options like travel, statement credits, gift cards, or transfers to partner programs.
How to contact American Express customer service?
You can contact American Express customer service by calling the phone number listed on the back of your credit card or on the official American Express website under the "Contact Us" section.
How to avoid negative credit score impact when closing a card?
To minimize negative credit score impact when closing a card, pay off all balances on other cards to keep your credit utilization low, and avoid closing your oldest credit account if possible.
How to get confirmation of American Express card closure?
After requesting closure, ask the American Express representative for a confirmation number or a written confirmation to be sent via email or mail.
How to dispose of a closed American Express card?
Physically destroy a closed American Express card by cutting through the magnetic stripe and the EMV chip to prevent any unauthorized use.
How to check if my American Express account is truly closed?
You can check if your American Express account is truly closed by logging into your online account (it should show as closed), checking your credit report after a few weeks, or calling Amex customer service to confirm.
How to know if I have pending transactions before closing my Amex card?
Review your online account activity or recent statements for any unposted or pending transactions before you initiate the closure process.
How to handle annual fees when closing an American Express card?
If you're closing due to an annual fee, ideally do so before the annual fee posts to your statement. If it has already posted, you can still close the card, and Amex may prorate or refund a portion of the fee depending on their policy and how long into the year you've had the card.
How to reopen a closed American Express card?
Reopening a closed American Express card is generally not possible; you would typically need to apply for a new card. In rare cases, if the closure was very recent (within a few days), you might be able to request a reversal by contacting customer service immediately.
