Canceling a United Airlines credit card requires careful consideration and a series of steps to ensure the process is completed correctly. This comprehensive guide will walk you through the cancellation process, provide insights on potential impacts, and offer alternatives to consider before making your final decision.
Before You Cancel: Important Considerations
Check Your Card Anniversary Date
Before initiating the cancellation process, it’s crucial to be aware of your card’s anniversary date. This is typically when United Airlines charges the annual fee for your credit card. To avoid unnecessary charges:
- Locate your card anniversary date on your statement or by contacting customer service
- Plan to cancel at least 30 days before this date
- Note that United Airlines does not typically refund annual fees once charged
Use or Transfer Your Reward Points
Your hard-earned reward points are a valuable asset. Before canceling:
- Check your current point balance
- Use points for future United Airlines flights or with travel partners
- Consider transferring points to another rewards program if possible
- Remember that you may lose access to these points once the account is closed
Pay Off or Transfer Your Account Balance
It’s essential to clear any outstanding balance on your card before canceling. Options include:
- Paying off the balance in full
- Transferring the balance to a personal loan
- Using a balance transfer credit card
- Consolidating the debt with other outstanding balances
Remember, you cannot close a credit card account with an outstanding balance.
The Cancellation Process
1. Contact Customer Service
To cancel your United Airlines credit card:
- Locate the customer service number on the back of your card
- Call and inform the representative of your intention to cancel
- Be prepared for potential counteroffers, such as annual fee waivers or reductions
Note: United Airlines does not offer online cancellation for their credit cards.
2. Confirm Cancellation and Keep Records
During the cancellation call:
- Note the date and time of the call
- Record the name of the customer service representative
- Request a cancellation confirmation
- Keep your final account statement for future reference
These records can be invaluable if any unexpected fees or interest charges appear after closure.
3. Cancel Automatic Payments and Destroy the Card
After confirming cancellation:
- Cancel any automatic payments linked to the card
- Transfer recurring payments to another payment method
- Cut up and dispose of the physical credit card to prevent unauthorized use
4. Monitor Your Credit Report
Following cancellation:
- Check your credit report 30 to 45 days after canceling
- Ensure the account is marked as “closed” or “account closed by consumer”
- Verify that no outstanding balances or late payments are associated with the closed account
- Confirm the credit limit for the closed account is listed as $0
Additional Considerations
Impact on Your MileagePlus Account
Canceling your United Airlines credit card:
- Does not result in the loss of miles earned through credit card spending
- Will not cause United to close your MileagePlus account (unless you violate terms and conditions)
Potential Credit Score Impact
Closing a credit card account can affect your credit score:
- It may change your credit utilization ratio
- The impact is generally minimal for those with long credit histories or multiple credit accounts
- Consider the potential impact carefully if you have a short credit history or few credit accounts
Alternatives to Cancellation
Before finalizing your decision to cancel, consider these alternatives:
1. Downgrade Your Card
Benefits of downgrading include:
- Maintaining your credit history
- Reducing or eliminating annual fees
- Retaining your account number and balance
- Keeping future upgrade options open
- Preserving your points and miles (in most cases)
To downgrade:
- Contact customer service to explore downgrade options
- Ensure you’ve had the card for at least 12 months
- Consider downgrading to a no-annual-fee option like the United Gateway Card
2. Keep the Card for Occasional Use
Even with infrequent use, keeping the card can be beneficial:
- Maintains a longer credit history, positively impacting your credit score
- Helps optimize your credit utilization ratio
- Avoids the need for new credit applications and associated inquiries
- Retains valuable benefits like Global Entry/TSA Precheck fee credits and travel insurance
- Provides a no-foreign-transaction-fee option for occasional international travel
Conclusion
Canceling your United Airlines credit card is a significant financial decision that requires careful consideration. By following this step-by-step guide, you can navigate the cancellation process smoothly while minimizing potential negative impacts. Remember to weigh the pros and cons, consider alternatives like downgrading, and make an informed decision based on your unique financial situation and travel needs.
