Did you know over 15 million Americans fell victim to identity theft in 2021? Credit card fraud was the top reason. Getting rid of an old or expired credit card is key to keeping your info safe. This guide will show you how to do it right, keeping your financial data secure.
Key Takeaways
- Dispose of credit cards securely to prevent unauthorized use and identity theft
- Follow steps to close accounts and redeem rewards before disposing of cards
- Destroy plastic cards by cutting or shredding, and return metal cards to the issuer
- Avoid unsafe disposal methods like bending, folding, or exposing cards to extreme temperatures
- Properly deactivate cards and separate components to ensure complete data destruction
Steps Before Disposing of a Credit Card
Before getting rid of a credit card, there are important steps to take. First, pay off any balances on the card. This avoids late fees, interest, and can protect your credit score.
Then, use up any credit card rewards you’ve earned. This could be points, miles, or cash back. Redeeming these rewards means you won’t lose them when you close the account.
Lastly, call your credit card issuer to close the account. This makes sure the card is no longer active. It also confirms you’ve finished the necessary steps before getting rid of the card.
By following these steps, you protect your financial info and credit history. This prepares you to remove the credit card from your life for good.
Destroying a Plastic Credit Card
There are safe ways to get rid of your plastic credit cards. The goal is to make the card useless and protect your personal info. This keeps your data safe from misuse.
Cut with Scissors or Shredder
One easy method is to cut the card with heavy-duty scissors or shears. Cut it into pieces, making sure to hit the magnetic stripe and chip. This makes it hard for anyone to put the card back together.
You can also use a cross-cut shredder for credit cards. These shredders break the card into tiny pieces. This makes it impossible to use your card for identity theft or unauthorized access.
Demagnetize and Disable Chips
It’s also key to demagnetize the magnetic strip and disable the chip. You can do this by swiping the card through a strong magnetic field. This can be from a degaussing machine or a powerful speaker. It wipes out the data on the magnetic stripe.
To disable the chip, you can cut or puncture it. This makes sure the chip can’t be used to access your account info, even if the card is found.
By cutting, shredding, demagnetizing, and disabling your credit cards, you can destroy them safely. This protects your financial info from identity theft and unauthorized access. It gives you peace of mind when getting rid of an expired or unused card.
Disposing of Metal Credit Cards
Getting rid of metal credit cards is harder than plastic ones. They can’t be cut or shredded at home. It’s best to call your credit card company for safe return or disposal services.
Many companies, like American Express, Chase, Citibank, and Capital, offer free mail-back services. They make sure your card is destroyed safely. This keeps your personal info safe from misuse.
Trying to get rid of a metal card yourself is risky. It might damage your shredder. These cards are too thick and hard to cut without the right tools. Don’t bend, fold, or expose it to extreme heat, as it can harm the security features.
Returning Metal Credit Cards to Issuers
- Contact your credit card issuer and ask about their recycling or takeback program.
- They often send pre-paid envelopes or give you instructions for mailing it back safely.
- Some banks, like Chase and Capital One, let you recycle the card at a local branch.
Using your credit card issuer’s disposal services is the safest way. It ensures your metal card is destroyed right. This protects your personal info from misuse.
Avoid Unsafe Disposal Methods
It’s important to know how to safely get rid of a credit card. Some methods can risk your personal and financial info. Avoid bending or folding the card and don’t expose it to extreme temperatures.
No Bending or Folding
Bending or folding a credit card doesn’t really destroy it. The magnetic stripe or chip might still work. This means your info could be at risk. It’s safer to cut or shred the card instead.
No Exposure to Extreme Temperatures
Burning a credit card can release harmful fumes and is dangerous. It also might not fully destroy the card. Use safer ways to get rid of your card to keep your info safe.
Staying away from these unsafe ways to dispose of a credit card is key. By properly destroying your card, you keep your info safe from thieves.
Disposing of credit card
It’s important to dispose of a credit card the right way to keep your info safe. This is true if your card has expired, been replaced, or if you’re closing the account. You need to make sure the card can’t be used again and that your info is protected.
Here are the steps to follow when getting rid of a credit card:
- Pay off any balances on the card.
- Use up any rewards or points on the card.
- Close the account with the issuer and confirm they know the card is gone.
For plastic cards, you can cut them up with scissors or shred them. Make sure to demagnetize the magnetic strip and disable any chips to keep your info safe.
Metal cards need to be sent back to the issuer for safe disposal. They have special security features that need careful handling to be destroyed properly.
Don’t use unsafe ways to get rid of your card. Avoid bending, folding, or throwing it away without making it unusable. These methods can risk your personal info and should be avoided.
| Disposal Method | Plastic Cards | Metal Cards |
|---|---|---|
| Cut with Scissors | ✓ | ✗ |
| Shred | ✓ | ✗ |
| Demagnetize and Disable Chips | ✓ | ✗ |
| Return to Issuer | ✗ | ✓ |
Protecting Your Personal Information
When you get rid of a credit card, keeping your personal info safe is key. This means shredding it well or cutting it into tiny pieces.
Shredding or Cutting into Pieces
A cross-cut shredder is a top choice for destroying a credit card and its data. If shredders are not around, scissors can work too. Just make sure to cut the magnetic stripe and chip into tiny bits.
Separating Card Components
It’s also smart to split up the credit card parts, like the magnetic stripe and chip. This extra step stops any leftover data from being found or used wrongly.
| Method | Effectiveness | Ease of Implementation |
|---|---|---|
| Shredding | High | Easy |
| Cutting into Pieces | Moderate | Moderate |
| Separating Card Components | High | Moderate |
By following these steps, you can keep your personal info safe. This way, you lower the chance of identity theft when you throw away a credit card.
Impact on Credit Score
Closing a credit card can affect your credit score. This is especially true if the card has a high limit or has been open for a long time. It’s key to know the possible effects before you decide to close the account and throw away the card.
When you close a credit card, it can change your credit utilization ratio. This ratio is a big part of your credit score. It shows how much of your available credit you’re using. Experts say to keep this ratio under 30%. Those with the best scores use less than 10%.
Closing a card can make your utilization ratio go up. This might lower your credit score. Also, the length of your credit history is important. It makes up 15% of your FICO score. Closing a long-standing card can shorten your credit history, hurting your score.
| Statistic | Impact |
|---|---|
| Credit Inactivity Impact | Not using a credit card regularly can cause the card to be considered “inactive,” leading to potential account closure. |
| Account Closure and Credit Score | Closing an inactive credit card can reduce the available credit and negatively impact the credit score. |
| Credit Utilization Ratio | Credit utilization, accounting for 30% of the FICO score, should ideally be kept below 30%. |
| Effect of Closing Unused Cards | Closing a credit card may reduce the length of credit history and increase the credit utilization ratio. |
The effect of closing a credit card on your score can differ based on your credit profile. Talking to your credit card issuer or a financial advisor can help. They can explain how it will affect you and what’s best to do.
Notifying Authorized Users
When you get rid of a credit card, it’s key to tell any users who were allowed to use it. This lets them know their card won’t work anymore. They can then destroy their card and update any automatic payments or charges.
Authorized users don’t have to pay for the card like the main cardholder does. So, when the main account is closed, the user’s card can be canceled easily. But, it’s still important to tell them to avoid any problems later.
Some credit card companies have special teams for closing accounts after someone dies. These teams can help notify users and make the process smoother. They might ask for a death certificate and other documents to start the closure.
It’s rare for credit card ownership to be transferred to authorized users. Instead, they might need to open a new account or have the credit line moved to an existing one. The exact steps depend on the credit card company’s rules and the situation.
By making sure to tell authorized users and following the right steps, you can dispose of a credit card responsibly. This protects both the main cardholder and the users’ financial well-being.
Updating Automatic Payments
When you get rid of a credit card, it’s important to update any automatic payments. This stops any problems with your bills and subscriptions. Here’s how to do it right:
- Contact the merchants or service providers where you had automatic payments set up.
- Give them your new payment info, like a new credit card number or bank details.
- Make sure they’ve updated your info and your payments will keep going without a hitch.
Updating your automatic payments is key when you cancel a credit card. It keeps your finances running smoothly. By updating your info, you avoid any disruptions to your automatic payments after credit card disposal.
| Card | Cash Back | Intro APR | Regular APR |
|---|---|---|---|
| Discover it® Cash Back | 5% cash back on everyday purchases, 1% on all other purchases | 0% for 15 months | 17.74% – 27.74% Variable |
| Wells Fargo Active Cash® Card | 2% cash rewards on purchases | 0% for 12 months | 19.74%, 24.74%, or 29.74% Variable |
| Bank of America® Travel Rewards credit card | 1.5 points per dollar spent on all purchases | 0% for 15 billing cycles | 18.74% – 28.74% Variable |
By updating automatic payments after credit card disposal, you keep your finances running smoothly. You avoid any surprises with your bills and subscriptions.
Conclusion
Getting rid of an old or expired credit card is key to keeping your personal and financial info safe. By using the safe methods we talked about, you can make sure your card can’t be used again. This keeps your data safe.
Before you throw away your card, make sure to pay off any balances. Also, use up any rewards or transfer them. And don’t forget to close the account.
When you’re ready to destroy the card, pick the right method. This depends on if it’s plastic or metal. Don’t bend, fold, or put it in extreme heat. Shredding or cutting it up is the best way to keep your info safe.
Looking after your credit card is important for your financial safety. Identity theft is a big problem, growing fast. By following these tips, you can protect your credit and personal info. This keeps your finances safe.
FAQ
What steps should I take before disposing of a credit card?
First, pay off any balance on the card. Then, redeem or transfer any rewards. Finally, contact your issuer to close the account.
How do I securely destroy a plastic credit card?
Use heavy-duty scissors or a cross-cut shredder to cut the card. Make sure to cut through the magnetic stripe and chip. Also, demagnetize and disable the chip.
How do I dispose of a metal credit card?
Contact your issuer for secure return or disposal. Many issuers offer free mail-back services for metal cards.
What disposal methods should I avoid when getting rid of a credit card?
Don’t bend or fold the card. It won’t fully destroy the magnetic stripe or chip. Also, avoid burning or melting the card to prevent harmful fumes.
How can I protect my personal information when disposing of a credit card?
Make the card unusable to protect your info. Use a shredder or scissors to cut it into pieces. Also, separate the magnetic stripe and chip.
How might closing a credit card account impact my credit score?
Closing a card can affect your credit score. This is especially true for cards with high limits or long open times. Think about this before closing your account.
What should I do if I have authorized other users on my credit card account?
Tell any authorized users you’re closing the card. They need to know their card is no longer valid. They should also destroy their card and update any automatic payments.
What should I do about any automatic payments or recurring charges linked to the credit card I’m disposing of?
Update any automatic payments or recurring charges when you close the card. Contact merchants or service providers to give them new payment info. This ensures a smooth transition.
Source Links
- https://www.chase.com/personal/credit-cards/education/basics/what-to-do-with-old-credit-cards
- https://www.bankrate.com/credit-cards/advice/what-to-do-with-an-old-or-expired-card/
- https://www.bankrate.com/credit-cards/advice/how-to-dispose-of-metal-credit-card/
- https://www.forbes.com/advisor/credit-cards/how-to-dispose-of-a-metal-credit-card/
