Key takeaways
- To cancel a deceased person’s credit cards, you’ll have to start by gathering as much information on each credit card account as possible, including who might be included as an authorized user on the account.
- Once you have information on each account, you’ll have to call each credit card issuer and go through its process of resolving the account balance for the card and canceling it out.
- Don’t forget to also dispose of the canceled credit cards properly and freeze your loved one’s credit files to avoid future issues of identity theft or credit card fraud.
When someone passes away, it’s often up to their family to settle their estate, which includes all of their finances. If your loved one had credit cards, those credit cards will need to be canceled once they pass away. This is not typically something that automatically happens once someone dies, so it’s an important task to complete.
Try to get organized beforehand with the names of accounts and passwords. You can request a credit report for a comprehensive view of which accounts need to be settled, although the process for this might involve sending a copy of the deceased’s death certificate to the credit bureaus. It may also be helpful to monitor the mail for incoming statements and check for old invoices or statements.
Once you’ve gathered information about the accounts that need to be canceled, here’s a guide on what you can do next.
1. Determine whether others are named on the account
Before you contact a credit issuer to cancel an account, it’s important to determine if the account is a joint account or if it has authorized users.
In the case of a joint account, the account is equally shared between the deceased and another person. It’s a good idea to notify the co-owner of the account to let them know that they will be solely responsible for the account now. The co-owner can contact the card issuer to find out what that means for them. This is true for bank accounts, as well.
In the case of authorized users, there are no shared responsibilities on the credit account. The deceased, as primary account holder, is responsible for all payments. This means you can move forward with canceling the card completely, regardless of whether authorized users are listed. However, it’s helpful to notify users that you’ll be canceling the account, as they will no longer be able to use their card after you do so.
2. Notify the issuer
Once you know whether the deceased shared the account with anyone, it’s time to notify the issuer. In the case of a joint account, you or the joint account holder, will simply need to remove the deceased’s name from the account.
For all other cases, you will need to cancel the account. It’s important to do this as quickly as possible to avoid any possible fees or accrued interest on the accounts.
Call each card issuer and ask to speak with “Deceased Account Services” or the “Estate Unit.” Many card issuers have dedicated lines for this that you can find on their websites. When you notify the issuer, be prepared to present an original copy of the death certificate and any important court documents pertaining to the estate. Not all issuers request this information, but many do, so it’s helpful to have access if necessary.
Transferring credit card account ownership
If you’re the authorized user on the card and were hoping to keep the card open, explain the situation to the issuer. Most of the time, a credit card issuer will not transfer account ownership to an authorized user, but the issuer may be able to help the user open a new card with similar rates.
Some issuers, however, will transfer account ownership in specific circumstances. American Express, for example, allows individuals over the age of 21 to send a request in writing to take over eligible personal credit card accounts, but they must go through a credit review to do so.
3. Resolve the account balance
If the deceased had a balance on their credit card, it will need to be resolved through their estate by the executor of the estate. This will be a part of the probate process.
At no point should you pay a creditor using your personal funds. Instead, the creditor should petition the estate for the remaining balance on the account. If there aren’t enough assets in the estate to cover the debt, creditors may be out of luck. This is because credit card debt is unsecured debt.
Family members aren’t typically responsible for a loved one’s credit card debt, except in the case of a joint account or in the case of marriage in a community property law state. Authorized users are also not responsible for paying balances.
Debt collectors and creditors can contact relatives about paying debt but can’t use deceptive or abusive tactics to enforce payment due to the Fair Debt Collection Practices Act. This act applies whether you are responsible for the debt or not. Aside from protecting you from potential harassment, it allows you to decide when and how you would like to be contacted if necessary. It also gives you the ability to defer communication to a lawyer if you choose to employ one.
4. Check for rewards redemptions
If the deceased has any rewards left on their credit accounts, you may be able to redeem them as an authorized representative of the estate — but this depends on the issuer. Many issuers consider rewards points to be part of the rewards program and will simply count them as forfeited upon closure of the deceased’s account.
In order to redeem rewards, the authorized person will have to put in a request with the issuer and make sure that the account balance is paid in full. Many issuers have a timeframe for paying off the balance, so make sure you check this detail. If the issuer allows it, the rewards could either be transferred to another account or issued to someone else in the name of the deceased and sent to the address they have on file.
Keep in mind: The window to claim rewards is usually pretty short — often only a few months at most — so you’ll need to act quickly if you want to start the claims process. Plus, because credit card rewards are considered an asset, you might have to find out what the deceased’s will stipulates before you do anything.
5. Cancel recurring payments
If the deceased used their credit card to make recurring payments on any other accounts, such as utility bills or other subscriptions, you will need to cancel those. Canceling the credit card is not always enough to stop these payments from being processed. Check any statements your loved one left behind for recurring bills, including cell phone service, internet service and streaming services. Any services that have automatic payment with a credit card will need to be canceled with the service provider.
6. Dispose of the card
Once the card account has been canceled and you’ve received confirmation from the issuer, it’s important to destroy the physical card. Also, try to gather and destroy any cards from authorized users.
The best way to dispose of any cards is to run them through a shredder or cut them into pieces so that the magnetic stripe and EMV chip aren’t viable and the personal information isn’t readable. Also, check to see if anyone has access to any credit account numbers and inform them that the accounts are no longer valid.
Lastly, destroy any remaining card statements that are more than 60 days old. However, if any of the credit accounts were used to make tax-deductible purchases, hold on to those statements from the past six years. You will probably need them to help complete any final tax returns.
7. Monitor the account and the mail
Canceling a credit card account doesn’t always go perfectly, and you may find that companies continue to try and charge that card. If your loved one had recurring purchases that you weren’t able to cancel before canceling the card, you might find notifications about them in the mail or through your loved one’s email.
Keep an eye on the mailbox and inbox so that you can wrap up any loose ends with your loved one’s account if necessary.
Tips to keep in mind when canceling a loved one’s credit card
The steps mentioned above will help you close your loved one’s credit card accounts as seamlessly as possible, but there are still other considerations to keep in mind. Those can include dealing with those who want to continue using the card after your loved one’s death and dealing with your loved one’s credit vulnerability.
Don’t continue using a deceased person’s credit card
Once a person has passed away, their accounts are no longer valid. Unless you are the co-owner of a joint account, you shouldn’t use a deceased person’s credit card. This is true even for expenses pertaining to the deceased. Using a deceased person’s credit card is considered fraud, even if you were an authorized user. If you or another authorized user were to continue making charges to the account, you may become liable for new and old debt on the card.
Freeze your loved one’s credit reports
Identity thieves tend to target the credit of those who have little to no credit history and those who are deceased. By freezing your loved one’s credit report now, you can reduce the chance of bad actors opening accounts in your loved one’s name and causing problems for your family down the line.
To freeze your loved one’s credit report, contact the three credit bureaus — Experian, Equifax and TransUnion — and let each of them know the situation. They’ll guide you through the process.
The bottom line
The time period following a loved one’s death can already be tumultuous without the added headaches that come with handling their finances. But canceling a loved one’s credit cards after their death is an important part of settling their estate, so you’ll want to do so sooner rather than later.
Credit card issuers deal with situations like this every day, so they should be able to help you through the process. if you’re a joint cardholder with the deceased, then you’ll simply become the sole cardholder for the account, but if you’re an authorized user, you’ll likely lose access to that account. That means you’ll have to sign up for a new credit card entirely.
You should also be prepared to cancel any recurring subscriptions that your loved one might’ve had through the card, as well as to freeze their credit reports to avoid future cases of fraud or identity theft.
FAQs
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If you’re still seeing prescreened credit card offers for a deceased loved one show up in the mail, make sure that you’ve fully canceled their credit card accounts and have frozen their credit. If you’re still getting the offers after that, you can go to www.optoutprescreen.com and fill in the required information on behalf of your deceased loved one. These requests are processed within five days, but it might still take several weeks until the mail stops coming, according to the Federal Trade Commission.
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You should notify the three major credit bureaus: Equifax, Experian and TransUnion.
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