Are you thinking about saying goodbye to your American Airlines credit card? It's a significant decision, and you're in the right place to get a complete, step-by-step guide on how to do it. While canceling a credit card might seem straightforward, there are important considerations to keep in mind to ensure a smooth process and minimize any potential impact on your financial standing. Let's dive in!
How to Cancel Your American Airlines Credit Card: A Comprehensive Guide
Cancelling a credit card, especially one associated with a loyalty program like American Airlines AAdvantage, requires careful planning. Here's everything you need to know, from preparation to confirmation.
Step 1: Are You Absolutely Sure You Want to Cancel? – Evaluate Your Reasons
Before you pick up the phone, take a moment to reflect. Why are you considering canceling your American Airlines credit card? Is it the annual fee, lack of use, or perhaps you've found a better card? Understanding your primary motivation will help you decide if cancellation is truly the best option, or if there are alternatives.
Common reasons for cancellation include:
High Annual Fee: If the benefits no longer outweigh the cost.
Lack of Use: You're not flying American Airlines often enough to justify the card.
Better Rewards Elsewhere: Another card offers more valuable rewards for your spending habits.
Debt Management: You're trying to simplify your finances or reduce temptation to spend.
Impact on Credit Score: While generally not a good reason to keep an unused card, be aware of the credit score implications (more on this later).
Consider alternatives before canceling:
Downgrading to a No-Annual-Fee Card: Many issuers, including those partnered with American Airlines (Citi or Barclays), offer a version of the card with no annual fee. This allows you to keep your credit line open, preserving your credit history and utilization, without the yearly cost. You might lose some premium benefits, but it's a good compromise.
Seeking a Retention Offer: If you're a good customer, the issuer might offer you bonus miles, statement credits, or even waive the annual fee for a year if you call and express your intent to cancel.
Product Change: If you have other cards with the same issuer, you might be able to change your American Airlines card to a different product they offer that better suits your needs.
Step 2: Safeguard Your Hard-Earned Rewards: Redeem All AAdvantage Miles
This is an absolutely critical step. American Airlines AAdvantage miles are generally tied to your AAdvantage account, not solely to your credit card. However, some credit card issuers have policies that could impact your miles if the card is closed. It's always safest to redeem all your miles before initiating the cancellation.
Check your AAdvantage balance: Log in to your AAdvantage account on the American Airlines website (aa.com) or through their mobile app.
Redeem for flights: This is usually the most valuable way to use your miles.
Explore other redemption options: If you don't have immediate travel plans, check for redemptions like upgrades, car rentals, hotel stays, or even gift cards. Be aware that these options often offer lower value per mile.
Important Note on Mile Expiration: While having an AAdvantage credit card generally keeps your miles from expiring, once you cancel the card, the standard AAdvantage mileage expiration policy (typically 24 months of inactivity) will apply again. So, even if you keep your miles, ensure you have earning or redeeming activity within that timeframe to prevent them from expiring.
Step 3: Clear the Deck: Pay Off Your Balance in Full
You must pay off your entire outstanding balance before canceling your American Airlines credit card. Carrying a balance on a closed account can lead to:
Continued Interest Charges: You'll still be responsible for paying interest on the remaining balance.
Negative Credit Impact: The account will remain on your credit report, showing a balance on a closed account, which can negatively affect your credit utilization and score.
Less Flexible Payment Options: Once the account is closed, you might lose access to certain online payment features or customer service support for payment-related issues.
Make your final payment: Ensure your payment clears before you call to cancel. It's advisable to wait a few business days after your final payment posts to your account.
Confirm a $0 balance: You can do this by checking your online account statement or calling the credit card issuer's customer service number (found on the back of your card).
Step 4: Sever the Digital Ties: Update or Cancel Recurring Payments and Subscriptions
Many people link their credit cards to automated payments for bills, streaming services, or online subscriptions. Forgetting to update these can lead to:
Missed Payments: Which can incur late fees and potentially harm your credit score.
Service Interruptions: Your subscriptions might be suspended or canceled.
Review your statements: Look at your past few credit card statements to identify any recurring charges.
Update payment information: Log in to each service or vendor and update your payment method to a different credit card or bank account.
Cancel unwanted subscriptions: This is a great opportunity to cut ties with services you no longer use!
Step 5: Making the Call: Contact Your Card Issuer (Not American Airlines)
Remember, your American Airlines credit card is issued by a bank, typically Citi or Barclays, not American Airlines directly. You will need to contact the issuing bank to cancel your card.
Locate the Customer Service Number: The best number to call is usually on the back of your credit card. If you don't have your card, you can find the customer service numbers on the respective bank's website.
For Citi® / AAdvantage® cards, you'll call Citi customer service.
For AAdvantage® Aviator® cards, you'll call Barclays customer service.
General Citi Customer Service: 1-800-347-4934
General Barclays Customer Service: 1-866-928-3075 (for AAdvantage Aviator Mastercard)
Be Prepared: Have your credit card number, personal identification (like your Social Security Number or date of birth), and a reason for canceling ready.
State Your Intent Clearly: When you connect with a representative, clearly state that you wish to cancel your credit card account.
Be Prepared for Retention Offers: The representative may try to offer you incentives to keep the card open (see Step 1 alternatives). Politely decline if you're set on canceling.
Confirm Zero Balance: Reiterate that you have paid off your balance in full and want confirmation that your account balance is $0.
Request Written Confirmation: Crucially, ask for a written confirmation of the account closure to be sent to you. This can be via email or postal mail. Note the date, time, and the name/ID of the representative you spoke with for your records. This serves as proof of your cancellation.
Step 6: The Final Cut: Securely Dispose of Your Card
Once you've received confirmation that your account is closed, it's time to physically dispose of the card. This protects you from potential fraud.
Shred it: Use a cross-cut shredder if you have one.
Cut it into small pieces: If you don't have a shredder, use scissors to cut through the magnetic stripe, chip, and card number into many small, unrecognizable pieces.
Step 7: Monitor Your Credit: Check Your Credit Report
After 30 to 60 days, it's wise to check your credit report to ensure the account has been reported as "closed by cardholder" with a $0 balance.
Access your free credit report: You can get a free copy of your credit report from each of the three major credit bureaus (Equifax, Experian, TransUnion) once every 12 months at AnnualCreditReport.com.
Verify the status: Look for the American Airlines credit card account and confirm it shows as closed by you and has a zero balance.
Dispute any inaccuracies: If you find any discrepancies, contact the credit bureau and the card issuer to dispute them immediately.
Potential Impacts of Canceling Your American Airlines Credit Card
While the steps above help minimize negative effects, it's important to understand the potential consequences:
Credit Utilization Ratio Increase: When you close a card, you reduce your total available credit. If you carry balances on other cards, this can instantly increase your credit utilization ratio (the amount of credit you're using compared to your total available credit), which is a significant factor in your credit score. Keep this ratio below 30% for optimal scores.
Average Age of Accounts (AAoA) Reduction: Your credit score considers the average age of all your open accounts. If the American Airlines card is one of your oldest accounts, closing it could eventually lower your AAoA, although closed accounts in good standing can remain on your report for up to 10 years and still contribute to your credit history during that time.
Loss of Benefits: You'll lose any ongoing perks associated with the card, such as free checked bags, preferred boarding, companion certificates, lounge access, or earning bonus miles on American Airlines purchases.
Impact on AAdvantage Status: While cancelling the card doesn't directly remove your AAdvantage status, if your status was primarily maintained through credit card spending or benefits, you might find it harder to re-qualify in the future.
10 Related FAQ Questions
Here are 10 frequently asked questions, specifically starting with "How to," along with their quick answers:
How to check my American Airlines credit card balance?
You can check your balance by logging into your online account with the issuing bank (Citi or Barclays) or by calling the customer service number on the back of your card.
How to redeem American Airlines AAdvantage miles before canceling my card?
Log in to your AAdvantage account on aa.com or through the American Airlines app. You can book award flights directly or explore other redemption options like hotels or car rentals.
How to find the customer service number for my American Airlines credit card?
The best place to find the customer service number is on the back of your physical credit card. Alternatively, you can find it on the official websites for Citi or Barclays.
How to know if my American Airlines credit card is issued by Citi or Barclays?
Look at your card or your statements. Citi-issued AAdvantage cards will typically say "Citi® / AAdvantage®," while Barclays-issued cards will say "AAdvantage® Aviator®."
How to ensure my credit score isn't negatively impacted by canceling my card?
Pay off all balances across all your credit cards, especially the one you're closing, to keep your credit utilization low. Avoid closing your oldest credit card if possible, as this impacts your average age of accounts less over time.
How to handle recurring payments linked to my American Airlines credit card?
Before canceling, review your past statements to identify all recurring charges. Log in to each service or vendor and update your payment method to a different card or bank account.
How to get written confirmation of my American Airlines credit card cancellation?
When speaking with the customer service representative, explicitly request a written confirmation of the account closure, either via email or postal mail, and note the date, time, and representative's name.
How to dispose of my canceled American Airlines credit card safely?
Shred the card using a cross-cut shredder, or cut it into many small pieces, ensuring the magnetic stripe, chip, and card number are completely destroyed.
How to check my credit report after canceling my American Airlines credit card?
Visit AnnualCreditReport.com to get a free copy of your credit report from each of the three major credit bureaus. Check it 30-60 days after cancellation to confirm the account status.
How to avoid losing my AAdvantage miles if I cancel my American Airlines credit card?
Redeem all your miles before canceling the card. While AAdvantage miles generally don't expire as long as you have the card, once canceled, the standard 24-month activity rule will apply to prevent expiration.