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How to Close Your Target Credit Card Account

ByWallstreet Observer

Quick answer

  • Gather your account number and personal identification details.
  • Log in to your online Target account or call the customer service number.
  • Follow the prompts to request account closure.
  • Confirm the closure and ask for written confirmation.
  • Ensure your balance is zero before closing.
  • Be aware of potential impacts on your credit score.

Who this is for

  • Individuals who no longer wish to use their Target credit card.
  • People looking to simplify their finances by reducing the number of active credit accounts.
  • Consumers who want to avoid potential annual fees or interest charges on an unused card.

What to check first (before you act)

Goal and timeline

Before closing any credit card, it’s crucial to define your financial goals. Are you trying to reduce debt, improve your credit score, or simplify your wallet? Your timeline for achieving these goals will influence whether closing a card is the right move. For example, if your goal is to improve your credit utilization ratio, closing a card with a zero balance might not be beneficial in the short term.

Current cash flow

Understand your current income and expenses. Ensure you have enough cash on hand to cover any outstanding balance on the Target credit card you intend to close. Avoid closing a card if it means you’ll need to carry a balance on another card with a higher interest rate.

Emergency fund or safety buffer

Verify you have a sufficient emergency fund. Closing a credit card, especially one with a credit limit you sometimes rely on, can reduce your overall available credit. This might be problematic if you don’t have adequate savings to cover unexpected expenses.

Debt and interest rates

Check the current balance on your Target credit card. Ideally, you should pay off the entire balance before closing the account. If you have a balance, compare the interest rate on this card to any other cards you might use to pay it off. It’s generally best to pay down high-interest debt first.

Credit impact

Understand how closing a credit card can affect your credit score. Closing an account can reduce your average age of accounts and decrease your total available credit, which may increase your credit utilization ratio. This can have a negative impact, especially if the card has a significant credit limit.

Step-by-step (how to cancel my Target credit card)

1. Review your statements:

  • What to do: Gather your most recent Target credit card statements. Check for any outstanding balance, pending transactions, or rewards points.
  • What “good” looks like: You have a clear understanding of your balance and any available rewards.
  • Common mistake: Not checking for pending transactions, which could still post after you request closure. Avoid this by waiting a few days after your last purchase before initiating closure.

2. Pay off the balance:

  • What to do: If there’s any balance owing, pay it off in full.
  • What “good” looks like: Your account balance is zero.
  • Common mistake: Assuming the balance is zero without double-checking, or only paying the minimum. Avoid this by making a payment for the full statement balance or the current balance, whichever is higher.

3. Redeem rewards:

  • What to do: If your Target card has a rewards program (like Target Circle offers or credit card-specific points), redeem any accumulated rewards before closing.
  • What “good” looks like: You’ve used all your rewards or transferred them if possible.
  • Common mistake: Forgetting to redeem rewards, leading to their forfeiture. Avoid this by checking your rewards balance early in the process and redeeming them promptly.

4. Gather account information:

  • What to do: Have your Target credit card account number and personal identification information (like your name, address, and possibly the last four digits of your Social Security number) ready.
  • What “good” looks like: You can easily access all necessary details when you contact the issuer.
  • Common mistake: Not having the card handy, making it difficult to find the account number. Avoid this by having the physical card in front of you.

5. Choose your contact method:

  • What to do: Decide whether you will close the account online through your Target account portal or by calling customer service.
  • What “good” looks like: You’ve identified the most convenient method for you.
  • Common mistake: Assuming online closure is always available or the fastest option. Avoid this by checking the Target website for online closure options first, or be prepared for a phone call.

6. Contact the issuer (Online):

  • What to do: Log in to your Target account online. Navigate to your credit card section and look for an option to manage or close your account. Follow the on-screen instructions.
  • What “good” looks like: You’ve successfully submitted a request for account closure through the online portal.
  • Common mistake: Getting stuck in a loop of FAQs or general account information without finding the closure option. Avoid this by carefully reading each page and looking for terms like “Account Services,” “Manage Account,” or “Close Account.”

7. Contact the issuer (Phone):

  • What to do: Call the customer service number for the Target credit card. This is usually found on the back of your card or on your statement.
  • What “good” looks like: You are speaking with a representative who can assist with account closure.
  • Common mistake: Giving up after being put on hold or speaking with a representative who tries to offer retention deals. Avoid this by clearly stating your intention to close the account and politely declining offers if you are set on closing it.

8. State your intention clearly:

  • What to do: When speaking with a representative or navigating the online system, clearly state that you wish to close your credit card account.
  • What “good” looks like: The representative understands and begins the closure process.
  • Common mistake: Being vague about your request, which can lead to misunderstandings or unnecessary retention offers. Avoid this by saying, “I would like to close my Target credit card account.”

9. Follow prompts and answer questions:

  • What to do: The issuer may ask for your reason for closing or offer incentives to keep the account open. Answer truthfully but firmly if you wish to proceed.
  • What “good” looks like: You’ve provided the necessary information and navigated any retention attempts.
  • Common mistake: Getting swayed by retention offers when you’ve already decided to close the card. Avoid this by reiterating your decision if you are firm on closing the account.

10. Confirm closure:

  • What to do: Ask the representative to confirm that the account has been closed and inquire about receiving written confirmation. If closing online, look for a confirmation message or email.
  • What “good” looks like: You have verbal or written confirmation that the account is officially closed.
  • Common mistake: Assuming the account is closed without confirmation. Avoid this by asking for a confirmation number or requesting an email or letter.

11. Check credit reports:

  • What to do: After a billing cycle or two, check your credit reports from the major bureaus (Equifax, Experian, TransUnion) to ensure the account is reflected as closed.
  • What “good” looks like: Your credit report accurately shows the Target card as closed.
  • Common mistake: Not verifying the closure on your credit report, which could lead to issues if the account remains open. Avoid this by monitoring your credit reports periodically.

Common mistakes (and what happens if you ignore them)

| Mistake | What it causes

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