How To Cancel A Credit Card The Proper Way

If you have decided that it is time to close off that unwanted credit card, you’ll want to follow the right method to doing so.  Believe it or not, there are many mistakes that you can make along the way that can lead you to less than desirable occurrences if you don’t follow through on what you are doing.  Don’t assume that the lender will handle everything for you.  Remember, their business functions because you, and millions of others, have open accounts with them.

The process of canceling a credit card should be done correctly, with attention paid to all of these aspects.

#1:  Pay It Off First

The first thing you have to do is pay down the credit card.  You can’t have a balance and try to close the account.  Most lenders won’t let you, it will reflect negatively on your credit report, and it may cost you fees, too.  Once you have paid off the credit line in full, then you can proceed to closing the account.

#2:  Call The Lender

The next thing you should do to cancel the card is to contact the lender of the credit card.  You want the lender to be able to hear you tell them you would like to close the account.  They may ask you why and you may want to be honest with them.  At this time, you may also find that the lender is offering some deals or benefits if you will remain a customer of theirs.  Before you just hang up, you’ll want to consider what they are offering against your circumstances.  It may be beneficial to you, it may not be. 

If you decide that it isn’t something that’s right for you, don’t let the salesperson keep talking you into it.  You’ll want to also get the name of the person talking with you, assuming it is a live person, as well as the details of the call such as the time and date it was made.  Finally, take the time to check that the balance of the credit card is zero.

#3:  Follow Up

You can’t be too sure that your account is closed.  If you are trying to avoid an annual payment or just want to get it off your credit report as soon as possible, follow up on the call that you made.  To do this, you’ll want to do it in writing.  You should send a letter by certified mail or receipt request so that you know that they received it. 

In the letter you send, you should include your information including your name, address and your credit card account number.  State that you are closing your credit card account.  Also, mention that you would like them to report on your credit reports that you closed the account.  This will look better than just closing the account for no known reason.

#4:  Check For Yourself

The final thing that you should do when trying to close your credit card account is to pull your credit report about 45 to 60 days after the time you have submitted your requests to make sure that it has been closed.  On your credit report, it should say that the account has been closed and that it was, “closed at customer’s request.” 

If it says anything to the effect that the account was closed by the credit grantor, you’ll want to have this taken care of.  Call on the lender first of all and ask them to make the change. You can also file a dispute with the credit reporting agency to ask them to look into it and finally change it.

When you follow these steps, you will be able to effectively close your credit card account and still be able to benefit from it.  If you just let it go, you may find yourself facing fees including annual charges that shouldn’t have had to pay.  Checking your credit report is something that you should do each year, to insure that everything is accurate.  Getting a copy of the credit report now will help you to benefit by knowing that the account was handled the way that you wanted it to be handled.  This process can take you a couple of weeks and even up to three months to complete, but it will be effective the day you make the phone call.