How to Get Rid of a Credit Card

Whether you've closed an account or received a replacement card, all credit cards need to be disposed of eventually. When the time comes, you should do it in a way that won't cause harm or leave you susceptible to fraud.

Consider these options when you get rid of your credit card:

-- Demagnetizing

-- Cutting or shredding

-- Burning

-- Mailing the card back to the issuer

Below are more details about how to properly dispose of a credit card, especially if it contains special features or materials.

[Read: Best Balance Transfer Credit Cards.]

How to Dispose of Plastic Credit Cards

You can usually dispose of plastic credit cards pretty easily. However, there are certain steps you should take to ensure your card information won't end up in the wrong hands once you throw it away.

Demagnetize the strip. Your first step should be to render the swiping capability useless. This is done through demagnetization. To demagnetize your card, run a magnet along the strip on the back a couple of times. Any household magnet should do, such as one from your fridge. Now, the card can no longer be swiped if fraudsters get their hands on it.

Cut up the card properly. Next, it's time to cut up the actual card. According to Dennis Michel, senior vice president of customer service and engagement at Discover, taking a pair of scissors to the credit card you want to get rid of is a perfectly acceptable way to destroy chip cards and cards that don't use EMV technology.

However, you'll want to cut it up the right way. Deborah Sawyerr, U.K.-based owner and director of Sawyerrs' House, a money and financial literacy website, says start by cutting the card into four quarters.

Be sure to cut through your name, card number and the three-digit security code on the back of the card. Next, Sawyerr says you should also cut through the strip, length- and widthwise, as well as through the security chip. "Finally, cut up the card into the smallest possible pieces to render the card completely useless," she says.

Rather than cutting up the card yourself, you can use a paper shredder that has a dedicated slot for plastic cards, according to Michel. Before sending your card through a shredder, though, you should be sure it's designed to handle plastic cards and has a cross-cutting function. These types of shredders are usually more expensive than basic paper shredders but can go for less than $100.

[Read: Best Grocery Credit Cards.]

Spread out disposal. Once the card is cut up, it's not a good idea to dispose of all the pieces in the same receptacle. Though the strip would not work, a scammer could use the pieces to figure out the card number, expiration date and security code, which is enough to make purchases online or over the phone if the card is still valid.

Though it might seem like overkill, you can't be too careful: Throw away each piece in a different trash can and at different times, if possible. "This can include disposing of the card in a public (trash) bin as well as a bin at home and at different times of the week," says Sawyerr. "This ensures that none of the cut pieces can be put back together."

Burn the materials, with caution. Instead of cutting the credit card, you could burn it, which ensures there are no pieces with sensitive information left over. However, you should only go this route if you have access to a proper incinerator or burn barrel. Burning plastic can release hydrochloric acid, sulfur dioxide and other damaging chemicals that you shouldn't get near your lungs, skin or eyes.

How to Get Rid of a Metal Credit Card

Some credit cards are made with special materials. For instance, the Chase Sapphire Preferred Card and Capital One Venture Rewards Credit Card are both made with metal in addition to plastic, which means cutting them up yourself could be difficult and dangerous.

With a metal card, you'll want your credit card issuer to dispose of it instead. "Customers can call the number on the back and request a special return envelope, something we automatically send along with replacement cards," says Mary Jane Rogers, managing director and head of communications for card and merchant services at JPMorgan Chase & Co. This may be an option for plastic credit cards as well.

If you do choose to mail back your credit card for disposal, verify that your issuer receives it.

[Read: Best Dining Credit Cards. ]

Don't Leave a Paper (or Digital) Trail

Your work isn't done after you've disposed of your physical card. Usually, owning a credit card means there's a trail of statements and saved card information on your computer and phone. To ensure the account information can't be stolen, you need to clean up information related to the card.

Shred sensitive documents you no longer need. If you closed your account, you may want to get rid of any paperwork you've accrued over the years that you no longer need. This can include the initial card contract, monthly statements and any other documents sent to you in the mail. These documents can contain sensitive personal information tied to your finances that you wouldn't want a criminal to find. Though, keep in mind that you may want to keep documents for tax purposes or if you think you may face an audit down the road.

The best way to get rid of this paperwork is by shredding it. And just like with a shredded credit card, spread out the pieces across several trash bins and pick up dates. This makes it nearly impossible for possible fraudsters to piece the documents back together.

Clear saved account information. It's also common to keep a digital record of your credit card by saving account login information and credit card numbers in your browser. If you are simply cutting up your card but plan to keep the account open, having this data saved can leave it susceptible to theft by hackers. It's a good idea to never save passwords or account numbers in your browser or online accounts, even if you're actively using the card. Clear autofill settings on your browser, and remove the card as a payment option on accounts for online retailers or utility providers.

Casey Bond is a seasoned personal finance writer and editor. Her work has appeared in a number of major national publications including U.S. News & World Report, Yahoo Finance, MSN, The Huffington Post, Business Insider, Forbes and others. Follow her on Twitter @CaseyLynnBond.