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How to Close Your Credit Account

There are many reasons why someone would want to close their credit card. It helps to manage debt especially when you do not want to accumulate more. Another reason would be when you have a credit card that you barely use or want to minimize on the number of credit cards you have. Whatever the reason, closing credit card accounts should be done in the right way so as to avoid additional fees and harming your credit score. Since you have decided that you want to close your account, you have to ensure that you go about it in the right manner. Below is a step to step guide.

 How to close a Credit Card

closing-credit-card-account

  •  Pay off your Balance: You need to make sure that the card has zero balance before cancelling it. If the reason why you are cancelling the card is to manage your existing debt and the high interest rates that come with that particular card, then your best option would be to transfer the balance. Get a card with a lower interest rate and transfer your balance onto that card. If you can manage to pay off the balance, then pay it all up. A lot of self discipline and restraint is required when people want to close credit cards. Usage of the card must stop so as to bring the balance to zero.
  • Call Customer Care: Customer care lines can be found at the back of your credit card or on the company’s website. Inform the representative that you want your card cancelled. Be sure to be firm, reason being they are most likely to woo you by offering perks such at lower interest rates just to keep your account open. Be polite but firm when closing credit card accounts and request for confirmation in written form when the account is closed. Also ask the customer care representative to give you the name and address of the person you should notify the closure to, in writing.
  • Write a Letter: Draft a short letter and confirm that you want your credit card account closed. Also request for a confirmation in written form once they have closed up the account. Indicate the day in which you made the cancellation call and include contact information such as your name, number and address. Also be sure to indicate that the card is being cancelled at your request to avoid stating that the issuer cancelled the card. Be sure to give the correct account number.
  • Mailing: To verify that your request has been received and signed, mail the letter via certified mail and not email. The email may go to a spam folder and chances are high that it may not be received. Always keep a copy of the letter for reference when closing credit card accounts. This is just in case a mistake is made in the process.
  • Check Credit Report: When closing credit card accounts, you need to be patient as this process may take time from a few days to weeks. After a month, check on your credit report to confirm that the card was indeed closed.

Learning how to close a credit card account is important in helping you avoid extra fees. Step 1 is highly important. Closing credit card accounts is a great step toward having a debt free life.

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