When a close friend or family member passes away, the last thing you may want to think about is financial matters. Managing the finances of someone who has passed away may seem overwhelming, but it's important to start relatively quickly to minimize the risk offraudoridentity theft.
Fortunately, representatives at banks and credit card companies understand this and will help make the process as easy as possible. Here's a step-by-step look at what to do when a credit card holder passes away.
Step 1: Notify the three major credit bureaus
Credit reporting companies regularly receive notifications from the Social Security Administration about individuals who have passed away, but it's better to also notify them on your own to ensure no one applies for credit in the deceased's name in the meantime.
Send letters to each of the major credit bureaus —Experian,1Equifax,2andTransUnion3— and include the deceased's legal name, Social Security number, date of birth, date of death, and your full name and mailing address. You will need to provide a certified copy of the death certificate, a copy of your identification, and proof of your authority over the estate (e.g., a marriage certificate for a spouse or a Letter of Testamentary or court order naming you as the executor).
When you write to the three big credit bureaus, it's a good idea to also request a copy of your loved one'scredit report. This will ensure you know about all open accounts that need to be closed. While you may find credit cards in a wallet or statements in a desk drawer, the only way to know for sure that you're canceling every single account in the deceased's name is to order a copy of their credit report.
Spouses and executors of the estate can make this request when they write to each of the credit bureaus to let them know of the person's passing. Just be sure to include the deceased's last known address in your letter.
Tip: When managing the finances of a loved one who's passed away, it's important to start the process quickly to minimize the risk of fraud or identity theft.
Step 2: Notify financial institutions
Using the credit report as your guide, contact all banks and credit card companies at which the deceased had an open account and close those accounts as quickly as possible. You will need to provide a certified copy of the death certificate to close the account.
Step 3: Figure out who is legally responsible for any credit card debt
If your loved one died with outstanding debts, untangling who is legally responsible for the credit card debt can be tricky.
Credit card debt doesn't disappear when the credit card holder passes away. If the account was jointly held with a spouse or someone else co-signed the credit application, that person will be 100% responsible for the debt.
If the debt is in the deceased's name alone, a surviving spouse may still be responsible for the debt if they live in one of thecommunity property states4: Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, Wisconsin, and Alaska (if a special agreement is signed). Different states have different rules for dealing with the debt of a spouse, so it's a good idea to talk to an attorney.
Step 4: Follow up
After closing credit card accounts and notifying the credit bureaus, follow up to ensure the accounts were closed and no fraudulent accounts have been opened. Ask for written confirmation and file it with other documentation for the estate.
Facing the death of a loved one is a daunting journey. Knowing how to handle their financial affairs can help ensure you don't have to deal with fraud or identity theft during an already difficult time.
If one of the other financial affairs you need to deal with is your loved one's bank accounts, check out this article onhow to close a bank account when a loved one dies.
Important Disclosure Information
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circ*mstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information.
- Experian, “How to Obtain a Deceased Person's Credit Report," April 9, 2018, https://www.experian.com/blogs/ask-experian/executor-of-estate-can-obtain-deceaseds-credit-report/, accessed May 14, 2019. Back
- Equifax, “How to I obtain a credit report for a deceased person?" accessed February 5, 2024. Back
- TransUnion, “Reporting a Death of a Loved One to TransUnion," April 5, 2019, accessed February 5, 2024. Back
- CFPB, “Can I be responsible to pay off the debts of my deceased spouse?" August 2, 2023; accessed February 5, 2024. Back
FAQs
Notify credit card companies of the death
After you've collected the person's financial accounts, contact each card issuer and request to cancel the accounts. For joint credit cards, you'll want to notify the issuer that a joint cardholder has died.
Who notifies credit card companies when someone dies? ›
Spouses and executors of the estate can make this request when they write to each of the credit bureaus to let them know of the person's passing. Just be sure to include the deceased's last known address in your letter.
What happens if a credit card holder dies without paying? ›
While your heirs can inherit other assets, they are not legally responsible for your credit card debts. However, the creditor might still contact them and ask them to pay off any outstanding debts. Even then, the debts do not simply vanish. Instead, the debt burden gets transferred to the estate of the deceased.
Does credit card debt go to spouse after death? ›
If your spouse dies, you're generally not responsible for their debt, unless it's a shared debt, or you are responsible under state law.
Do you need a death certificate to cancel credit cards? ›
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.
Can you get in trouble for using a deceased person's credit card? ›
In conclusion, it's a crime to use a dead relative's payment cards, even if they're no longer able to use them. Anyone convicted of using a card to make fraudulent purchases will face years of imprisonment for deceit, not to mention an identity theft offense will appear on their criminal record.
What debts are forgiven at death? ›
Most debt will be settled by your estate after you die. In many cases, the assets in your estate can be taken to pay off outstanding debt. Federal student loans are among the only types of debt to be commonly forgiven at death.
Can I use the deceased person's credit card to pay for the funeral? ›
Credit cards of the deceased are no longer valid. They cannot be used under any circ*mstances, even for funerals and final expenses. Transactions on these cards can result in fraud. Even if you're an authorized user or had permission to use the card before the cardmember passed away, do not use them to make purchases.
Does social security report death to credit bureaus? ›
However, once the three nationwide credit bureaus — Equifax, Experian and TransUnion — are notified someone has died, their credit reports are sealed and a death notice is placed on them. That notification can happen one of two ways — from the executor of the person's estate or from the Social Security Administration.
Does a credit card have death insurance? ›
In case of the Card holder's accidental death, the Credit Shield provision ensures that any outstanding amount on the Credit Card is settled. This reduces the financial burden on the family or beneficiaries of the deceased.
How to Report a Death to the Credit Bureaus
- Understand Who Can Report a Death. Only your spouse or another person with legal authority, such as the executor of your estate, can notify credit bureaus of your death.
- Gather Information. ...
- Submit the Documents to a Credit Bureau. ...
- Request a Copy of the Deceased's Credit Reports.
When the primary cardholder dies, credit card issuers usually close the account, often within a few weeks. Issuers normally find out about the death from the person settling the estate or from the Social Security Administration.
Will credit card companies settle after death? ›
The CARD Act of 2009 says that the card issuer must promptly notify the estate executor if any balance is due, and the issuer can't add any more fees or penalties while the estate is being settled. But if there isn't enough money in the estate to cover credit card balances, the card issuer may be out of luck.
Do you have to notify a credit card company of death? ›
Report the person's death to banks, credit card companies, credit bureaus, and other financial organizations. And contact utilities and places where the person had memberships and subscriptions. Learn from the Federal Trade Commission what to do about any debts the person had.
Is credit card debt absolved after death? ›
If there's no money in their estate, the debts will usually go unpaid. For survivors of deceased loved ones, including spouses, you're not responsible for their debts unless you shared legal responsibility for repaying as a co-signer, a joint account holder, or if you fall within another exception.
What happens to credit card points when someone dies? ›
The terms of transferring points after death depend on the credit card issuer's policies and the underlying rewards program. Some issuers may allow points to be transferred to another account, while others might liquidate the points into the estate.
Can creditors go after beneficiaries? ›
When a person dies, creditors can hold their estate and/or trust responsible for paying their outstanding debts. Similarly, creditors may be able to collect payment for the outstanding debts of beneficiaries from the distributions they receive from the trustee or executor/administrator.
