If you've stopped using a credit card, it's important to take the necessary steps to ensure that it doesn't fall into the wrong hands and continue accumulating debt. Here are some steps you can take to handle an unused credit card:
1. Cancel the Card: The first step is to cancel the card. This can usually be done online or by calling the customer service number on the back of the card. Be sure to verify all charges have been paid off before canceling the card.
2. Destroy the Card: Once you've cancelled the card, destroy it. Cut it up with scissors or shred it using a cross-cut shredder. This will help prevent someone from misusing your card information.
3. Check Your Statements: Even after cancelling the card, it's a good idea to keep an eye on your statements for a few months. Some companies may continue charging fees or interest on closed accounts, so it's essential to catch any unexpected charges.
4. Update Your Records: Remove the card details from your wallet, phone, and other places where you might store payment information. It's also a good idea to update your records to reflect the cancellation of the card.
5. Monitor Your Credit Report: Keep an eye on your credit report regularly to ensure there are no fraudulent transactions. You can do this by ordering your free credit reports from the three major credit bureaus (Equifax, Experian, and TransUnion) once a year.
6. Consider Freezing Your Credit: If you're not planning to apply for new credit anytime soon, consider freezing your credit. This will prevent anyone from opening new accounts in your name without your permission. To freeze your credit, contact each of the three credit bureaus and request a credit freeze. Remember to unfreeze your credit when you're ready to apply for new credit.
7. Alert Your Bank: If you have a joint account with your ex-spouse or partner, inform them about the cancellation of the card. They should also take steps to secure their own cards and monitor their credit reports.
8. Be Wary of Unsolicited Offers: After cancelling your card, you might start receiving offers from banks offering to reactivate your card or issue you a new one. Be cautious and avoid accepting these offers unless you're certain you want to reactivate the card.
9. Protect Your Personal Information: In addition to cancelling and destroying your card, make sure to protect your personal information. Never share your credit card number, expiration date, or CVV code with anyone, even if they claim to be from a legitimate company.
10. Regularly Review Your Financial Situation: Keep an eye on your finances and review your budget regularly. This will help you stay on top of your expenses and ensure you're not missing any payments or fees related to the cancelled card.
By following these steps, you can ensure that your unused credit card does not cause any harm to your financial health or security. Remember, it's better to be safe than sorry when it comes to managing your credit cards.