How do I cancel my Credit Card the right way? When canceling Your credit card, there are points to take into consideration. It does not make sense to have multiple credit cards open. Closing an account can seem like an easy task, but you’ll have to think of paying off your balance, how it will affect your credit and what will happen to any rewards you’ve earned.
Maybe you’re ready to get rid of all those extra cards in your wallet to avoid irrelevant expenses. Or perhaps you just have too many cards to keep track of or are paying too many annual fees. These are all good reasons to consider canceling a credit card, which is not a hard process in itself.
How Do I Cancel My Credit Card The Right Way?
Check the Best Accounts to Close
Check out which of the Credit cards you’re going to close and which one you want to remain open. The oldest card should be kept open, even if the interest rate is the highest rate. The length of your credit history affects your credit score. If you close your oldest credit card you will shorten the length of your credit history, which will lower your credit score. Ensure that you leave open the card with the lowest rate.
Close Your Credit Cards
When you’ve determined which of the Credit cards you’re going to leave open, you need to begin to close your credit cards out. Next, you need to pay off your balance in full. This can be carried out by writing a letter to the bank or issuer, requesting that they close your account. Send the letter with the return receipt requested, through the post office. So that you the letter has reached the Credit card company. Additionally, you should request the Credit card company send you a letter stating that the account has been closed.
Confirm that the Account Is Close
Furthermore, Check your balance to ensure that it is paid off, then call in about a month later to confirm that the account has been closed. If not, request the account be frozen. Check to confirm if they have received your request to close your account. You will need to resend the letter because they require a signature and proof in writing to close the account. It is important to always follow up and be sure that the account is closed. Do not assume that is close, especially if the card had an annual fee because missing the payment on that can affect your credit score.
Check Your Credit Report
After some months, check your credit report to make the account shows up as closed. If you are aware that the bank has closed the card, but still it is not reflecting on your credit report, you need to contact your bank again and ask them to report the account as close to the credit bureau. It might take a few months for it to show up on your credit report. But if they do not report after six months you can ask to have the Credit bureau check into the account.
Close Account After You Have Paid Balance Off
However, do not close your credit cards until you have paid off the balance in full. Credit Cards issuers are more exciting to work out a payment plan with customers that have open accounts and will negotiate lower interest rates. If the account is closed with the balance in it, then you are stuck paying it back on the current terms of the agreement. The Credit card issuer may be able to raise your Interest rate as the market adjusts.