Can I Cancel A Credit Card I Just Applied For?

Short Answer: Yes, if the card is still not officially approved, you may be able to contact the credit card issuer to cancel before you are officially approved. But if you’re approved, declining a credit card offer may have some negative impacts based on what you agree to under terms and conditions as well as your credit score. Learn everything you need to know before completing a credit card application and how to read the fine print.

Tips for Deciding Whether to Accept or Decline a Credit Card Offer

Just because you’ve applied for a credit card doesn’t mean you have to accept the offer. Before you do, consider these factors that can help determine whether the card is right for you.

Read the Fine Print

Every credit card is different, with varying terms, conditions, fees and benefits. Take some time to review the fine print. Look for details on these essential elements.

• Annual percentage rate (APR): This is what you’ll pay on any balance you carry over to a future month. Some cards have interest rates as high as 20%, meaning you’ll face hefty fees for failing to pay off your credit card debt monthly.
• Annual fees: These are fees you pay no matter what just for the right to have the credit card. Sometimes cards with higher annual fees offer increased cashback percentages, which means paying the annual fee could result in greater benefits for larger spenders.
• Penalty fees: Know what you’ll be charged for failing to pay a balance on time and factor that in with the interest rate to better understand the full cost of the card should you carry over a balance.
• Grace period: Some credit card companies give some time for you to make additional payments or finalize a monthly payment in case you forget. This can be a nice benefit for people managing multiple accounts and credit cards.
• Cashback/benefits: Customers might be looking for a card that offers greater benefits than they have with their existing credit card. That can be a deciding factor as to whether to accept a new card. Two popular options among consumers are cash back credit cards and rewards credit cards.

Understanding these details and other credit card basics will give you a clear picture of the card’s cost and features.

Assess Your Financial Situation

You should not accept every credit card you’re offered. That means you’ll have more to manage each month, which could mean your spending gets out of hand or you lose track of how much you’ve spent. As you assess your financial situation, consider these factors.

• Whether you genuinely need a new credit card 
• Income
• Expenses
• Existing credit card balances

The more financial accounts you have, the more time will be required to manage it all. Assess whether you can manage another credit card responsibly without adding to your debt or financial stress.

Compare with Existing Cards

Perhaps you’re evaluating a better card with lower fees and improved benefits. If that’s the case, you need to compare your existing cards with the new one you’ve applied for. While comparing, review fees and benefits for each. You might create a spreadsheet with side-by-side comparisons to make it simple.

Transitioning to a credit card with improved benefits and lower fees may be worth accepting based on your current financial situation.

Should You Cancel A Credit Card You Just Applied For?

Even though there may be time to cancel with the card issuer before approval, there is no reason to cancel as it's hard probably ran a hard inquiry on your credit and have already affected your credit score. That being said, it is better for your credit score to have a new card, in creasing your credit limit, then canceling but still getting the negative affect of the hard inquiry.

Consider Credit Utilization and Credit Score

Take a moment to review your credit utilization ratio — that is the amount of your monthly credit across all cards that you’re currently using. Generally, this is shown as a percentage. So if your total line of credit is $10,000 across all cards and you spend $2,000 on all cards, your credit utilization ratio is 20%. The general guideline is that you don’t want your credit utilization ratio above 30% in the average month.

Opening a new card increases your available credit, which can be good for people who have a high credit utilization ratio with the income to pay off the additional spending monthly. But for those who struggle to keep track of their spending and keep it within their means, another card could increase the temptation to overspend.

Your credit score is another factor to consider when accepting a new credit card. Doing so could harm your credit, especially if you’re planning to close an older credit card account in favor of a new one.

If you’re wondering when should you apply for another credit card, some of the following scenarios might apply.

• When your credit limit across all cards is too low based on your credit utilization ratio
• If your existing credit card issuer won’t increase your credit limit
• In cases where your current card’s annual fees don’t justify the benefits

Research the Credit Card Issuer

Who your credit cards are with does matter. When you experience an issue or suspect fraud, you want to be able to reach customer service swiftly. And you want to know that they can resolve the issue and get you a new card quickly so you can move on.

Before accepting the card, review the reputation of the credit card company, including:

• Online reviews 
• Reliability
• Customer support
• Dispute handling 

Reputable credit card issuers provide a better overall experience and might be worth having as part of your financial options.

Avoid Impulsive Decisions

Don’t allow the credit card issuer to use high-pressure sales tactics to get you to accept the card on the spot. Instead, take your time to evaluate the offer, review the terms and see how well the card would fit into your existing finances.

In cases where you aren’t sure whether the card is right for you or you’re worried about one or more of the terms and conditions, the best move is to decline the offer and keep looking or rely on the cards you have.

Consider Alternatives

Read up on other credit cards you might qualify for. See how their benefits and fees stack up to that of the card you’ve been accepted for. There might be something better out there based on your income, spending categories and needs.

Take advantage of credit card comparison websites to find alternatives that offer more favorable terms. Just know that third-party websites might not have the most up-to-date information about a card. So once you find one you like, review the terms directly with the issuer to confirm details.

As you shop around, you might be asking yourself will I be approved for a credit card? You can never guarantee that an issuer will approve you, but reading up on the qualification requirements will offer a decent guide to the question.

What Happens if You Get Approved for a Credit Card but Don't Use It?

If you get approved for a credit card but don't use it, there are a few potential outcomes. Firstly, your credit score may not be affected initially as long as the credit card remains open. However, if you continue to not use it for an extended period, the credit card issuer may eventually close the account due to inactivity. This could potentially have a negative impact on your credit score as it reduces your available credit and may decrease the average age of your accounts.

Additionally, not using a credit card means missing out on the opportunity to build a positive payment history and demonstrate responsible credit usage. Using a credit card responsibly by making regular, on-time payments can help improve your credit score over time.

Not utilizing a credit card also means you are not taking advantage of any potential rewards or benefits that the card may offer. Many credit cards provide cashback, travel rewards or other perks for using them.

It is also essential to review the terms and conditions, as some credit cards may have fees associated with them, even if you don't use them. It's always advisable to consider your financial needs and the terms of the credit card before applying to avoid any unwanted consequences.

How to Cancel Your Credit Card Application in 5 Steps

Once you’ve decided that a credit card you’ve been accepted for is not right for you, follow these steps to cancel the application to avoid negative impacts on your finances and credit score.

1. Review the Application Status

Visit the credit card company’s customer portal to review your application status. Given today’s technology resources, many credit card applications go through within minutes or even seconds.

But if your application is pending or under review, canceling your application might be as simple as clicking a button or calling the customer service line. However, if the application has been approved and the card has been issued, you may need to take additional steps to cancel it.

If you’re wondering how to decline a credit card approval, you should reach out to the issuer to learn more about what to do if you don’t want a card you’ve been approved for.

2. Contact the Credit Card Issuer

Gather important details about your credit card application, including:

• Your name
• Application reference number
• Other pertinent details relating to your application

Then, contact the credit card issuer’s customer service team. This might be as fast and simple as using online chat or you might need to reach out via phone. Ask the company to cancel your application.

3. Confirm Cancellation

Request that the customer service representative supply written confirmation of the cancellation. This might be via an email or mailed letter. You’ll want to keep this document for your records in case the application or issued card surfaces on your credit report as being active.

4. Monitor Your Credit Report

Monitor your credit report to ensure that the application does not appear as an open account. 

If you notice any discrepancies or if the application continues to show as an active account, contact the credit card issuer again to rectify the situation. You can get a free copy of your credit report annually from Equifax, Experian and TransUnion, which means you can check your open accounts every four months without penalties or fees. The Consumer Financial Protection Bureau offers helpful information about requesting and monitoring your credit reports.

5. Dispose of Correspondence

Once you’ve resolved any credit discrepancies and ensured the account is canceled, shred and securely discard all paperwork and correspondence that might have your personal information on it. Only keep crucial documents for your records, such as the letter confirming your application cancellation should there ever be a future dispute on the matter.

Bottom Line

No matter how much a friend or family member recommends a new credit card based on their experience or how well it ranks on comparison sites, it might not be right for you. Before accepting a new card or following through on an application, review how it will impact your personal finances carefully to make the best decision for you.

Frequently Asked Questions