How to Cancel an American Eagle Credit Card: A Step-by-Step Guide
The Dreaded Credit Card Cancellation Process
Canceling a credit card can be a real pain, am I right? You‘ve got to jump through hoops, wait on hold for what feels like forever, and deal with people trying to convince you to keep the dang thing open. But don’t worry, I’ve got your back! In this guide, we’ll walk through exactly how to cancel your American Eagle credit card – without all the hassle.Before we dive in, let‘s address the elephant in the room. Why would you want to cancel a credit card in the first place? Well, there are a few common reasons:
- The annual fee is too high and not worth it anymore
- You’ve got too many open credit cards and want to simplify
- The rewards program isn’t cutting it for you these days
- You’re trying to increase your credit score by lowering your credit utilization
Whatever the reason, canceling a credit card is totally normal – don‘t feel bad about it! Credit card companies make cancellation kind of a headache because they don’t want to lose customers (and that sweet, sweet annual fee revenue). But you’ve got rights as a consumer, and this guide will show you how to exercise them.
-Preparing to Cancel: What You Need to Know
Before you pick up the phone, there are a few things you‘ll want to take care of first:
- Pay off any remaining balance. This is crucial! You don’t want any outstanding balances when you cancel, as that can hurt your credit score.
- Redeem any outstanding rewards. If you’ve racked up rewards points or cash back, be sure to redeem them before canceling. You’ll likely lose them once the account is closed.
- Identify recurring charges. Go through your statements and make a list of any recurring subscriptions or charges that are billed to your American Eagle card. You’ll need to update the payment info for those.
- Check for annual fee refunds. Some cards will refund a portion of your annual fee if you cancel within a certain window (usually 30-60 days from when it was charged). It’s worth asking about!
With those ducks in a row, you’re ready to make the call. Grab that American Eagle credit card, take a deep breath, and let’s get canceling!
Calling to Cancel: A Step-by-Step Guide
- Find the right number to call. This should be on the back of your American Eagle credit card, but if not, just google “[American Eagle] credit card customer service” and it’ll pop up.
- Call during business hours. You’ll likely have to speak to a real human, so call when their customer service lines are staffed up. That’s usually between like 8am-8pm Eastern time on weekdays.
- Say “cancel my card” to get a specialist. Once you’re on the line with a rep, just tell them straight up that you’d like to cancel your credit card. They’ll likely transfer you to a specialist who handles cancelations.
- Be polite but firm. The specialist will probably try to convince you to keep the card by offering deals or downgrading you to a no-fee version. Just politely but firmly reiterate that you want to proceed with full cancelation.
- Provide details if requested. They may ask why you’re canceling or try to resolve any issues you have with the card. You don’t have to get into huge detail – a simple “I don’t find value in the card anymore” should suffice.
- Get written confirmation. Once they’ve processed the cancelation, be sure to get the details in writing. Either ask them to email or mail you a confirmation letter for your records.
And that‘s it – you’re free! The card will be canceled, and you can breathe a sigh of relief. Just be sure to update any autopay or recurring charges you had set up on that card.
Tips for a Smooth Cancelation
To make this process as painless as possible, keep these tips in mind:
-- Be patient and stay calm. The reps you talk to are just doing their job, so try not to take out any frustration on them. Staying cool and collected will make things go much smoother.
- But don’t get swayed. At the same time, don’t let them talk you into keeping the card if you’re sure you want to cancel. Politely decline any offers or retention deals.
- Avoid the “cancel online” trap. Some credit card companies make you go through annoying online processes or chat bots to cancel. Save yourself the headache and just call.
- Check your credit report. Once the cancelation is processed, keep an eye on your credit report for the next couple months to make sure the card is reported as closed by you (not the lender). This is important for your credit score.
- Consider a product change instead. If you like the card but not the annual fee, see if you can downgrade to a no-fee version instead of canceling fully. This can help preserve your credit history and limit.
At the end of the day, canceling a credit card doesn‘t have to be this huge ordeal. Just follow the steps above, and you’ll make it through unscathed! Don’t stress too much about it – your financial health is the priority.
Why You Might Want to Cancel
Okay, so now that we’ve covered the nuts and bolts of how to cancel, let‘s talk a bit more about the “why.” There are actually a few good reasons why canceling an American Eagle credit card might be the right move:
The annual fee is too high. If you’re not getting enough value from the card’s rewards program or benefits to justify the annual fee, it might be time to say “see ya!”
Your spending habits have changed. Maybe you got the American Eagle card when you were doing a ton of shopping at their stores, but now your habits have shifted. If the card no longer aligns with how you spend, canceling can make sense.
You’ve opened a better card. Credit card rewards games are always evolving, and a new, sexier card may have caught your eye with better perks or earnings rates. Totally valid reason to close out the American Eagle one.
-You’re trying to increase your credit score. This one is a bit counterintuitive, but closing out an unused card can actually help your credit utilization ratio, which is a factor in your score. Just be strategic about which cards you close.
The card doesn’t fit your values anymore. Maybe the American Eagle brand doesn’t vibe with your values like it used to. If the card feels out of alignment with your principles, closing it could be the move.At the end of the day, there’s no objectively “right” reason to cancel – it‘s a personal decision based on your financial situation and goals. As long as you’ve thought it through, you do you!
When You Might Want to Keep the Card
On the flip side, there are also some scenarios where keeping your American Eagle credit card could be the better choice:
-You’ve had it for years. Credit scoring models love longstanding credit histories. If you’ve had this card for 5+ years, canceling it could end up hurting your scores by shortening your overall credit age.
The annual fee is offset by rewards/benefits. Do a quick cost-benefit analysis – are the rewards, discounts, and perks you get from the American Eagle card worth more than the annual fee? If so, it could be worth keeping.
You’re about to apply for a loan. Applying for a mortgage, auto loan, etc? You may want to put off any credit card cancelations until after that process is done to avoid any score fluctuations.
You don’t have much total credit limit. Canceling a card could end up drastically reducing your overall credit limit between all your accounts. That could hurt your all-important credit utilization ratio.
You like the card’s benefits. From extended warranties to travel protections to discounts, some credit cards just come with super valuable benefits you‘d hate to lose.Again, there‘s no universal right or wrong answer here. It all comes down to your specific financial situation and goals. If the American Eagle card is still serving you well, keeping it open is perfectly valid!
Alternatives to Canceling
If you‘re on the fence about whether to cancel your American Eagle credit card, there are a couple potential alternatives to explore:
Product change: See if you‘re eligible for a product change to downgrade to a no-annual-fee version of the same card. This can help preserve your credit history and limit.
Call for a retention offer: Try giving the cancellation line a call and seeing if they’ll offer you any incentives or bonuses to keep the card open. If it’s good enough, it could make sense to hold onto it.
Ask to switch fees: If the annual fee is your main gripe, you could ask if they’ll let you switch to having monthly fees instead of an annual lump sum. Every bit of flexibility can help!
Go inactive instead: If you don’t want to fully close the card, you can also just choose to go inactive by stopping use of it. Just be aware of potential inactivity fees down the road.The key thing is to have an open, honest conversation with the credit card company about your situation. They may be able to offer solutions to address your pain points without having to cancel the card outright.
The Credit Score Impact of Canceling
One of the biggest concerns people have when canceling a credit card is the potential impact on their credit scores. And it’s a valid concern – canceling can definitely affect your scores in various ways:
Credit utilization goes up: By canceling a card, you’ll be reducing your total available credit limit. With the same balance, your overall credit utilization percentage will then go up – not ideal.
Credit history is shortened: Credit scoring models tend to favor accounts that have been open for a long time. By closing an older card, you could end up shortening your overall credit age.
Credit mix is impacted: Having a good mix of different types of credit (mortgage, auto, credit cards, etc) is better for your scores. Canceling a credit card adjusts that mix.However, it‘s important to understand that any credit score impacts from canceling a card are usually temporary. As long as you continue using your other cards responsibly, your scores should recover and stabilize within a few months.There are also some ways to help mitigate any credit score drops:
- Ask for a higher limit on your remaining cards before canceling to offset the utilization impact
- Leave your oldest card open to preserve your credit age
- Apply for a new card after canceling to rebuild your credit mix
At the end of the day, your credit scores are largely determined by your overall debt levels and payment habits. As long as you keep those in a good place, the impact of canceling one card shouldn‘t be too dramatic.
Alternatives to American Eagle
In the market for a new credit card after canceling your American Eagle one? There are tons of great options out there to explore! A few alternatives to consider:
- Store cards: If you liked having a card tied to a specific retailer, check out other store cards from places like Target, Amazon, Gap, etc. Just watch out for high interest rates.
- Cash back cards: Looking for straightforward cash rewards on your purchases? Popular cash back cards include the Citi Double Cash, Chase Freedom Unlimited, and Bank of America Cash Rewards.
- Travel cards: For those with a case of wanderlust, co-branded airline and hotel cards from Chase, American Express, and Capital One can help you earn free flights and nights.
- Business cards: If you’re a small business owner or solopreneur, opening a business credit card can help you separate expenses and earn rewards.
- Secured cards: Trying to build or rebuild credit? Secured cards from issuers like Discover and Capital One are a great way to go.