Posts Tagged canceling your credit card

Even with the potential risk to your credit score, getting rid of your credit card just makes the most sense sometimes.  When canceling the account, make sure to follow these five steps:

1. Pay off your balances

Before closing off an account, either transfer your existing debt to a balance transfer card or pay it off in full.  If you cancel with a balance in tow, your issuer can easily raise the interest rate, leaving you paying more for no reason other than the fact that you closed the credit line.

2. Call up the issuer to have the account closed

Once your balance is clean, call up the credit card company and request to close the account.  Take down the following information: date of your call, the exact time and the name of everyone you talk to.  They’ll try to talk you out of it, especially since you’ve got zero balance, but remain firm.  Don’t bother giving a reason for cancelling the card - if you give a reason, they’ll just come back with another reason to keep the credit card.  Just tell them you want it over and done with.

3. Ask for a written notification

When you cancel your card, always ask for a written notification when the process has been completed.  Some people also recommend sending a written later detailing the request, along with the phone conversation you had.

4.  Always follow-up

Canceling your account, contrary to common sense, actually takes time, for whatever reason.  Make sure to follow-up the status, at least once a week.    Make sure you keep notes - date of your call, the exact time and the name of everyone you talk to - as well.