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So, you got yourself a United Refining credit card? Perhaps as a means to save some cash on gas at Kwik Fill or Red Apple? That’s a smart move! But now you are considering turning that off. We get it! Things sometimes change, and a credit card that used to work for you no longer suits your needs.
This blog post offers a step-by-step guide on canceling your United Refining credit card. We’ll discuss why you might consider canceling, the steps to take as well as some things to think over before you make your final decision.
We’ll even provide you with alternatives to canceling, should you wish to explore other options.
Reasons to Cancel a United Refining Credit Card
There might be many benefits of using a United Refining credit card. However, there are several reasons why you might consider canceling it:
1. High APR
The annual percentage rate (APR) for the United Refining credit card could exceed that of other credit cards you have. A high APR can result in significant interest charges if you regularly carry a balance on your credit card.
2. Limited Acceptance
This credit card is mainly used at its gas stations (Kwik Fill, Red Apple, Country Fair). The card’s usefulness may be limited if you don’t often buy gas at these stations.
3. Better Rewards Elsewhere
Perhaps you applied for a different credit card that provides better rewards or benefits that are more in line with your spending habits. For instance, you could have a card that earns higher cashback rewards on all purchases, or a travel card that comes with helpful travel perks.
4. Simplifying Finances
If you have multiple credit cards, you might decide to cancel some to simplify your finances and make it easier to manage your accounts. This can be especially helpful if you’re trying to reduce debt or improve your credit score.
5. Fees
Annual fees or other charges might apply to the United Refining credit card that you’d rather avoid. If the benefits of the card don’t outweigh the fees, it would be reasonable to cancel it.
Steps to Cancel Your United Refining Credit Card
If you’ve made your decision and want to cancel your United Refining credit card, here’s how to do it smoothly:
1. Redeem Rewards
Take a moment to see your rewards balance before doing anything. Redeem any accrued rewards points or cashback bonuses on your United Refining credit card before you cancel.
You don’t want to throw away any of those benefits you’ve earned. You can generally use your rewards for things such as statement credits, gift cards or merchandise.
2. Pay Off Balance
Make sure you pay off your full balance. You cannot cancel a credit card when it has a balance. Just be sure to get the balance paid in full, including any new purchases or pending transactions. That way you’re not stuck with unpaid balances or surprise interest charges after you cancel the card.
3. Contact Customer Service
Contact United Refining’s credit card customer service department. You can usually find their number on the back of your credit card or in your monthly statement. Their contact information may also be available on the United Refining website. When calling, have your credit card and account information accessible.
4. Request Cancellation
When you are connected to a customer service representative, say clearly that you want to cancel your credit card and account. Be ready to provide your account details, including your credit card numbers and your Social Security number, for verification.
They may also ask you a few questions to verify your identity and determine the reason for your cancellation.
5. Confirm Cancellation
Make sure to ask the customer service representative before you hang up to confirm that your account is closed and that you will not be charged any further. You should receive a confirmation number or email confirming your cancellation for your records. This gives you documentation in case any problems arise in the future.
6. Destroy the Card
Once you’ve verified the cancellation, cut up your credit card to keep from unauthorized use. For added security, you can shred the card or use a credit card cutter. This can help protect you against potential fraud or identity theft.
Potential Consequences of Cancelling a Credit Card
While canceling a credit card can be a smart financial move in some situations, it’s important to be aware of the potential consequences:
1. Impact on Credit Score
Closing a credit card could potentially lower your credit score, especially if it is one of your older accounts or if it greatly reduces your available credit. This is because a portion of your credit score is determined by the age of your credit history and your credit utilization ratio.
When you close an account, you also lose that history, and your available credit shrinks, which can impact your score.
2. Reduced Credit Utilization
Closing a credit card account can raise your credit utilization ratio — the percentage of all the credit that you use versus what’s available to you. High credit utilization ratio can hurt your credit score as it may seem to lenders that you are over reliant on credit.
If the total credit limit across all your cards is $10,000 and you close a card that has a limit of $2,000, your total available credit decreases to $8,000. Your credit utilization, if your balances remain unchanged, will be higher.
3. Loss of Credit History
Closing an older credit card can shorten your credit history, which can have a negative impact on your credit score. Short credit history is another common reason to get rejected for a credit card.
Lenders want to see that you’ve had a long history of responsible credit use. Closing an older account erases that positive history from your credit report, which may make you look less admirable to lenders.
4. Difficulty Getting Approved for Future Credit
Canceling too many credit cards can lower your credit score, making it harder to qualify for credit in the future. Lenders may view it as a sign of financial instability, or that you are attempting to circumvent managing your credit in a responsible manner.
Alternatives to Cancel Your United Refining Credit Card
Before you decide to cancel your United Refining credit card, consider these alternatives that might better suit your needs:
1. Reduce Usage
If your primary issue is spending too much or going into debt, see if you can limit the number of times you use the card. You keep the card open, but use it only for select purchases, such as gas at United Refining stations. That way, you get the rewards but not the temptation of over spending.
2. Transfer Balance
If a high APR is your main reason for canceling, try transferring your balance to a card that has a lower interest rate. This can save you money in interest charges as you pay your debt.
3. Use for Specific Purchases
Even if you have other credit cards that offer better rewards, the United Refining credit card will be worth having for those purchases where it offers the most value. For example, it’s possible you only want to use it for gas purchases at their stations so you can earn the most fuel rewards.
4. Keep for Credit History
If you’ve had the card for a while, and it’s one of your oldest accounts, you might want to keep it open to help maintain a longer credit history. Such credit utilization can be good for your credit score.
If you have a card that you will not use much but want to keep, you can just store the card safely. Then, you can use it every now and then on smaller purchases to keep your account active.
5. Contact Customer Service
Contact United Refining’s credit card customer service and ask if they have any options for upgrading the terms on your account. They could offer a lower APR, waive certain fees, or find other solutions that will better meet your needs.
By considering some of these alternatives, you may just be able to keep your United Refining credit card and reach your financial goals.
Wrapping Up
So we have shared quite a bit regarding United Refining credit card cancellation. And if a credit card isn’t right for you anymore, you absolutely shouldn’t have any qualms about canceling it. Just make sure you know the steps and the risks before you jump in.
And if you do choose to cancel, follow the steps we laid out and you’ll be fine. But remember those alternatives as well! Sometimes all it takes is a slight adjustment on how you’re using the card or a brief call to customer service to see big results.
