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How to dispose of old credit cards when it is not useful?

Dispose of unwanted things or credit cards in our own lives frequently means simply throwing them in the trash or recycling bin, or if they are still practical, giving them away. It is different with dispose of old credit cards along with other payment cards, that should be destroyed so no one can use them. But what to do with old credit cards? Exactly how to ruin a payment card correctly isn’t clear, particularly with the dispose of new metallic credit cards. Here’s the way to get rid/dispose of the old credit cards, without burning credit cards or burying required.

Firstly, contact the issuer, if you want to dispose of credit cards

When closing the account is your goal, you will must call the number on the rear of your card and ask to do so, although putting an end to account might not always be good idea.

In case your card is a reward card, remember to redeem points or money back. Change any automatic payments to a different card, and make certain to cover the final card invoice. Skip this step if you are simply replacing an expired card or one which has been compromised.

Why closing a credit card account can hurt you

Closing of a credit card account may decrease your credit score. That’s because credit scores consider your credit utilisation ratio, or how much of the available credit you’re using. The lower ratio is better. And once you close an account, you’ve less available credit. Scores also consider the duration of time you have had the card open.

Closing an old card decreases the average age of your accounts, and it is also considered a drawback. But if an undesirable credit card charges an annual fee or you’ve trouble controlling spending with a credit card, it might be worth shutting the account anyway.

Cutting up plastic cards is a kind to dispose of credit cards

Sturdy scissors and smart trimming will do the job here and you can take help of credit cards shredder too.

“We recommend that consumers cut through the EMV chip, then further cut the card a few times along the short side, and dispose of the sections in more than one trash bag,” says Sarah Grano, a spokeswoman for the American Bankers Association. Feed plastic cards into a paper shredder designed to handle them.

Send back metal cards rather than dispose the credit cards by yourself

Destroying or dispose a metal credit cards by yourself is harder and potentially dangerous. Contact your issuer. Typically, you can mail it back for disposal.

For example, when American Express sends a replacement card, it also sends an addressed return envelope to mail back for destruction or dispose of an old credit cards, says Heather Norton, spokeswoman for American Express. You can call the number on the back of the card, and American Express will mail you a prepaid envelope.

Keep an eyes on your account

Don’t obsess about identity theft of an old credit card. You generally won’t be responsible for fraudulent charges anyway, although you could endure some hassle. Take extra care with debit cards and other plastic where fraud means you might actually be missing money, even if temporarily. It’s a good idea to check your account statement — even your last statement on a closed account — to make sure there’s been no fraud.

» MORE: How to prevent credit card fraud

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