If you read my blog entry yesterday, you may be deciding which credit cards you would like to cancel. I thought it might help to offer up a few tips on how to cancel a credit card.
First, there is no wrong way to cancel a credit card account. Still, there are some important steps to follow in the process.
1. Make sure you have paid off every cent on your account before you attempt to cancel. Even if you have a small balance, if you try to cancel the card it can wreck havoc with the credit card company. Some of them will even charge you additional fees or extra interest. Therefore, the best solution is to determine your complete pay off amount. Pay it. Then, wait for the next bill that shows there is zero balance.
2. Cancel all automatic charges to the card and wait at least one billing cycle to ensure they have ceased. Some people charge items like their cell phone on their credit card – so be sure you have made arrangements for different billing long before you actually cancel the card.
3. Cut up the card and throw it away. Do this even before you actually cancel the account. This will ensure you don’t accidentally use it.
4. Make sure all your account signers are aware you are canceling the card. Did you make your college-bound daughter a signer at one point? Make sure she knows the account is canceled. Also, make sure all extra cards are cut up and thrown away.
5. Now that all the above steps are completed – you can actually cancel the card. Start by contacting the company via a phone call to notify them of the cancellation. They may make many attempts to keep you. At the end of the call, make sure you ask them to make a note on your credit report that the account was “closed at customer’s request.”
6. Follow up with a letter indicating your cancellation. It is ideal to send this certified mail.
Lastly, wait a couple of months and check your credit report to verify the account was closed correctly.
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