Essential Insights
- Collect robust details on every credit card tied to the deceased, including any supplementary users.
- Contact each credit card issuer individually, adhering to their procedures for settling outstanding balances and formally terminating the cards.
- Properly dispose of all nullified cards and freeze credit files to shield against identity theft or fraudulent charges in the future.
When someone departs this life, their family often shoulders the responsibility of untangling financial affairs, including credit cards. It’s crucial to deactivate any credit cards the deceased held since these don’t automatically deactivate upon the cardholder’s death.
Getting Your Ducks in a Row: How to Prepare
Advance planning pays off—compile a list of account names and passwords. Ordering a credit report can give a bird’s-eye view of outstanding accounts, but be aware this may require submitting a death certificate to credit bureaus. Keeping an eye on incoming mail for statements or older bills can reveal payments that need handling.
Once you have mapped out the credit accounts requiring action, this roadmap will guide your next steps.
1. Identify Joint Holders and Authorized Users
Before dialing up the credit card company to close an account, first verify if it’s a joint account or has authorized users involved.
Accounts with authorized users differ significantly from joint accounts. In the former, all liability falls on the primary cardholder — the deceased — meaning you can proceed with canceling the card regardless of any authorized users. However, it’s courteous and necessary to inform those additional users about the account’s closure, as their access will terminate immediately.
2. Alert the Credit Issuer Promptly
Knowing who else shares or uses the account helps determine the right process. For joint accounts, either you or the surviving co-owner will need to remove the deceased’s name. For all other scenarios, the account must be fully canceled to prevent accruing unwanted fees or interest.
Reach out to the issuer’s “Deceased Account Services” or “Estate Unit”—many companies provide dedicated phone lines listed on their websites. Have ready an official death certificate and any estate-related court documents, as issuers often request these to proceed.
Transferring Account Ownership: Is It Possible?
Authorized users hoping to retain a credit line should explain their situation to the issuer. Transferring ownership is rarely permitted, but some issuers might assist by offering a new card with comparable terms after a credit check. In very specific cases, especially for joint accounts, issuers might consider ownership changes following thorough evaluation.
3. Settle the Outstanding Balance
Any balance on the deceased’s credit cards generally must be paid off by the estate, barring joint accounts or states governed by community property laws. Authorized users aren’t obligated to cover these debts.
Creditors typically file claims against the estate to recover any owed amounts. Should assets fall short, creditors often have limited recourse because credit card debt is unsecured. During this process, you can invoke the Fair Debt Collection Practices Act, which protects you from harassment and lets you control communication, including deferring such matters to legal counsel if desired.
According to the Consumer Financial Protection Bureau, an average household held about $6,270 in revolving credit card debt as of 2023, highlighting the importance of promptly addressing outstanding balances after a cardholder’s death.
4. Hunt Down and Redeem Rewards
If the deceased accumulated credit card rewards, you might be able to claim them as estate representative—but this varies by issuer. Frequently, points or miles are forfeited once the account closes.
To redeem rewards, submit a request and ensure the account balance is fully cleared within prescribed timeframes. Approved redemptions could be transferred to another account or issued to a different recipient under the deceased’s name at their registered address.
Note: The eligibility window for rewards redemption is often brief—sometimes just a few months—so swift action is essential. Plus, since rewards count as estate assets, check the deceased’s will before proceeding.
5. Terminate Recurring Payments Linked to the Card
Canceling the credit card alone may not stop automatic charges. Subscriptions such as utilities, streaming services, phone bills, and other recurring payments require direct cancellation with the service provider.
Scan the deceased’s recent statements meticulously to identify such automatic debits and contact those companies to halt further charges.
Keep Your Wits About You
Card cancellation doesn’t always seal the deal instantly—some merchants might continue to try charging the account. If recurring payments weren’t fully shut down before the card’s closure, be vigilant with mail and email for any leftover notifications and make sure all loose ends get tied up.
6. Destroy Cards Securely
Once you’ve received official confirmation from the issuer that the account is closed, it’s time to get rid of the physical cards, including those used by authorized users.
Shredding or cutting the cards into tiny pieces is best, ensuring the magnetic strips and EMV chips can’t be exploited. Notify anyone who might still have card numbers that these accounts are defunct.
Dispose of any credit card statements older than 60 days, except those related to tax-deductible expenses—hold onto those for at least six years for tax records.
Vital Tips When Handling a Loved One’s Credit Cards
Following these guidelines will streamline the closure of credit card accounts and help shield against identity fraud.
Refrain from Using the Deceased’s Cards
Once a person has passed on, their credit cards lose validity immediately. Unless you are a joint account holder, do not attempt to make charges—even for expenses related to the deceased. Doing so constitutes fraud and risks legal penalties as well as familial strife.
Notify all three major credit bureaus—Experian, Equifax, and TransUnion—about the death to initiate credit freezes and prevent unauthorized activity. They will advise you on the necessary steps.
The period after losing someone dear is already rife with stress; adding financial complications is something to avoid. Swiftly canceling credit cards is a key part of closing out an estate and safeguarding the future.
Frequently Asked Questions
How Do Credit Card Companies Find Out When Someone Passes?
Although the Social Security Administration reports deaths to credit bureaus, credit card companies don’t receive immediate notice. You must proactively inform each issuer by providing a death certificate. Similarly, alerting the three main credit bureaus yourself is recommended.
How Can I Stop Credit Card Offers Arriving for the Deceased?
Persistent prescreened offers can be curtailed by canceling all credit accounts and freezing the deceased’s credit. If offers linger, visit www.optoutprescreen.com to submit an opt-out request on the deceased’s behalf. Processing takes around five days, but it may take several weeks before mail finally ceases.
Which Credit Agencies Should Be Notified Upon Death?
The big three to notify are Equifax, Experian, and TransUnion. Prompt notification helps prevent unauthorized credit activity.
Is There a Penalty for Using a Deceased Person’s Credit Card?
Absolutely. Charging a dead person’s credit card counts as fraud—even if you were authorized to use the card when they were alive. Consequences may include hefty fines and imprisonment.