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Once you start exploring the credit card options, you will find tonnes of options. Each financial institute offers the best plans, convenient terms, and banking apps through which you can easily apply for a credit card.
Thus, there is no reason you would want to withdraw your application. However, you may still wish to cancel because you received another offer with better perks and more convenient terms!
Now, the question that most of you ask is if you can cancel the credit card application after submission. Understand that it is difficult to answer this in simple yes or no. The possibility of cancellation will depend on various factors.
The cancellation terms can vary for different financial bodies as per their policies, how fast you act, and more.
In this article, we will discuss everything you need to know about canceling your credit card application. We will also discuss whether you can withdraw the form after submission and what the possible ways are for it to be done.
Reasons Why You May Want to Cancel a Credit Card Application
There can be multiple reasons behind your intent to cancel your credit card application. It is significant to have clarity of your reason because your bank might ask you for it during cancellation process. Some of the relevant reasons are listed below.
Change of Mind
You may have suddenly changed your mind and need more time to evaluate the implications it will have on your financial health. It may happen that you filled out the application on impulse only to realize later that you did not really need a card.
Found Better Options
You may have discovered better options after submitting the application with a lower annual fee or better credit card rewards. This can be a reason that you now wish to cancel the initial application.
If you don’t know how many rewards cards are available in the USA. We have dedicated articles to help you choose the best rewards credit card.
Unexpected Fee
You discovered some hidden charges while or after applying for the credit card and the newfound terms are not acceptable to you. Sometimes, people wish to cancel because of the fact that information was kept hidden from them initially.
Incorrect Information Filled
Another reason is you have filled wrong information by mistake in the form and now wish to cancel the form. This way, you can simply fill out another form, starting afresh, and give the correct information this time.
Can You Cancel a Credit Card Application After Submission?
Now, coming to the actual question, can you cancel the credit card application after submission? Generally, you should be able to cancel your application by calling the credit card company. Let’s find out how actually you can do it.
Before Approval
If you acted swiftly and decided to cancel the credit card application before approval, the chances of cancellation are high. Here’s all you need to know about cancellation before approval.
- Most of the financial institutes put the application under review immediately after you click the submit button. In that case, you have to get in touch with the customer care staff to understand the cancellation process.
- There are higher chances that the bank doesn’t offer any cancellation provision and you have to go with the process after getting the card in hand. It is significant to note that this might include a cancellation fee.
After Approval
If you get delayed in deciding the cancellation, the process gets complicated. Here’s what you need to know about cancellation after approval.
- Once your application is approved, you have an active account even if you haven’t received the physical credit card. In such scenarios, you have to go through the entire account closing process before canceling the card.
- It is significant to note that canceling the card immediately after approval has a direct impact on your credit score. The inquiry that your financial institute will start before cancellation will be reflected in your financial record for up to 2 years.
- After approval, the cancellation comes with additional fees. How much you pay depends on the policies adhered to by your financial institution, but you definitely have to pay for it.
How to Cancel a Credit Card Application?
The first and foremost thing is to act swiftly and start the cancellation process as early as possible. Once you have made a decision, here’s a step-by-step process that you can follow.
Step 1: Content Your Card Issuer
The first step is to contact the customer support team and ask them to initiate the cancellation immediately. The earlier you call, the higher your chances of going through with the cancellation process.
Step 2: Get Card Status
Ask the support team about your credit card application status, whether it is already approved, under review, or not initiated yet. It will give you clarity about the entire process and how challenging it is going to be to cancel.
Step 3: Explain the Reason
There will be a small inquiry that the customer support team will begin. They will ask about your reason for cancellation and might offer you alternatives to change your mind. Corporate and answer their questions for a smooth experience.
Step 4: Request Cancellation Confirmation
After everything is done, and the support team confirms canceling your credit card, request a confirmation e-mail. It might happen that you have been verbally confirmed but the card is still open and working. So, do not rely on verbal communications, and always request an official email.
Alternatives to Cancellation
Pause the Application: If you are just not ready at the moment, your bank can allow you to pause the application and start it once you feel like it.
Keep Account Open but Unused: You can keep the account open but not use it. This way, you save yourself from paying the cancellation fee and going through a chaotic cancellation process.
Impact on Your Credit Score
Canceling your credit card after application submission has adverse effects on your credit score. It is because of the inquiry that your bank starts after the cancelation process.
However, the impact is usually minimal and reflects on your financial records for up to a year or so. It happens because the account already started showing in your credit report and you are closing a newly opened account within a few days only.
To eliminate the ill effects, avoid unnecessary credit card applications and apply for cards only when you truly need and qualify for them. This way, you also save yourself from chaotic hard inquiries and your credit report stays consistent, helping you maintain a healthy credit profile over time.
Things to Consider Before Canceling
If after knowing all the details, you still wish to go through with the cancellation process, there are a few things you should definitely keep under consideration.
- You should know that timing plays a crucial role in credit card cancellation. The early you initiate the process, the higher your chances of getting through with the process.
- Regardless of whether the cancellation happens or not, you have to go through the hard inquiry and it will show on your credit report for years. It will potentially lower your credit score.
- You may have to pay additional fees for the cancellation. The range will vary for different banking institutes.
Keep in mind that there is always an option to keep the account open, manage it well, and let the card expire on its own validity.
Final Thoughts
In the end, it is fair to say that canceling the credit card application is a challenging process. Sometimes, the bank doesn’t allow it, especially if the application has already been processed.
Even if they allow it, you must pay the additional fee and go through a complicated cancellation inquiry. Moreover, its impact on your credit score is also a concern.
So, it is always advisable that you initiate the application process only when you are sure. While filling out the application, be mindful of all the information you put in to avoid rejections and cancellations. If there is still a doubt, don’t hesitate to call customer service, and stay prepared for the repercussions.
