Can a Credit Card be Canceled After Being Approved?

Can a credit card be canceled after being approved? Many believe credit card approval is absolute, yet that’s not always true. The credit card approval is the very first step of the process. Delivery, activation, cooling-off periods, and credit score effects can make it complex. Both seasoned users and first-time applicants will benefit from knowledge of how approval, delivery, and activation carry different meanings.  

This article explores whether a credit card can be cancelled following approval, the applicable rules, and the impact the cancellation can have on the credit score.

Credit Card Approval vs. Delivery vs. Activation – What’s the Difference?

Can a credit card be canceled after being approved? Before diving into the question, it helps to clarify three distinct stages in the lifecycle of a credit card application:

1. Authorisation

Once your credit check is done and your application is approved, the card issuer will officially offer you a line. This means you are eligible for a credit card but haven’t obtained one yet.

2. Delivery

The issuer may mail the physical card to your address or send you a digital one after approval. At this stage, the account is active on the record of the card provider. You have received the card, but it is still not active.

3. Activation

Activation means you are starting to use the card through a dedicated mobile app, customer service call, or a first payment of some sort. Once the card is activated, you can start using it for transactions, and it will be reported to the credit bureaus. 

Can a Credit Card Be Canceled After Being Approved?

Cancellation is possible even after the credit card approval process, but how easy this is and what consequences follow depend on the timing and local policy framework.

Here’s a breakdown of the key situations:

1. Before the Card is Activated

It is possible to cancel credit card after approval easily by contacting the customer service, if the card has not been activated yet. There is no settlement pending as the card has not been used, and no transactions have been made. Once the card has been cancelled, the physical copy must be destroyed. If the card is inactive for an extended period, some banks can automatically deactivate the card and close the account.

It is best not to wait for the automatic closure and opt for a formal card cancellation process if you want to cancel the card.

2. Credit Card Approved, But Not Delivered

Credit card approved but not delivered? Applicants may change their minds if a card is approved but not delivered. Usually, the account is already set up even if the card has not been delivered yet. So, the process to cancel credit card before delivery is more like account closure than cancelling the card. 

3. Once the Card is Activated

The account is completely active once a credit card is activated and used. Can a credit card be canceled after being approved and activated? It is possible through formal account closing. You will have to pay off all pending balances along with any applicable interest and fees.

Credit Card Cancellation Rules: What You Should Know

The credit card cancellation rules can differ based on the credit card issuer. Here are some general rules and conditions to consider:

• Formal Closuer Request is Necessary: Most banks require a formal credit card cancellation application, and the process can vary.
• Some Fees May Apply: In some cases, certain charges, like the joining fee and annual fee, can still be levied after the card cancellation. Some banks may have a credit card cooling period where cancellation or closure is possible without any charges.
• Any Outstanding Balance Must be Paid: Outstanding balance, incurred interest, and any applicable fee must be cleared.
• Closure Timeline May Vary: The time required for cancelling the card can vary from one issuer to another.
• Credit Reporting can Continue: Even after the card is cancelled, it can still remain on your credit history.

Impact of Cancellation on Your Credit Score

A major concern people have when thinking about credit card cancellation is the effect on their credit scores.

Here’s what can happen:

• There can still be a hard inquiry on your credit report since the credit issuer requests a credit check after your application.
• It can increase your credit utilisation ratio and reduce the total credit available to you.
• The impact is usually temporary, especially if the card hasn’t been used.

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Conclusion

Although the specific terms rely on bank policies and legislation, a credit card can generally be cancelled after approval through a formal cancellation request. The process can vary depending on the current state, like if the card is delivered but not activated, or the card has been activated. 

Learn about different credit cards, review terms clearly, and choose the right line of credit with My Mudra. 

Also Read:
- Pros and Cons of Having Multiple Credit Cards in 2026
- What Happens If You Don’t Activate Your Credit Card?