Below are eight easy steps to follow on how to cancel a credit card. Make sure you have decided the best thing to do with regards to your plastic card.
Things to do before you cancel a credit card
See to it that you are clear on why you are canceling a credit card. Doing so may impact your credit score negatively. Hence in some cases, it is better to leave it open and inactive.
Should you wish to proceed anyway, make sure you have directly contacted your credit card company to request for cancellation. Don’t forget to follow up in writing.
How to cancel a credit card
- Choose which credit card to retain and to cancel
In case you’re considering to close some cards since you have too many, do substantial research before closing any of them.
Be keen on annual fees and make sure to retain the cards with a lower interest rate. Don’t forget checking out the rewards most essential to you, too.
- Clear your balance
Some cards allow customers to continue paying their balance even if they have closed, but it indeed comes with higher interest rates and additional fee. In case you’re unable to pay the balance before closing it, transferring it to your new card is a good idea. Just make sure it has a low-interest rate.
- Find out how to redeem rewards you have accumulated.
Make sure you are aware of the things that might happen to your rewards when you close the account. Some firms enable you to redeem points for a particular number of days, while others also require you to cash them in.
- Get yourself ready with a counteroffer
Your card company could offer you a couple of additional benefits just to retain you. Therefore, think about of reasons that would take you to keep your plastic open.
- Call your credit card provider
Search for your card company’s customer service number and call them directly to let them know you want your plastic closed. This can’t be done online.
- Request for written notice of the account closure
Make sure to get the details of your account closure via regular mail or email
- Follow up with a short written letter
Include in the letter some necessary information about you, including your full name, credit card account number, and contact numbers. Indicate too essential details regarding the closure of the account.
- Evaluate your credit score and report.
Your credit score will notify you on whether or not damage took place after the closure. The credit report, on the other hand, makes it sure for you that everything was applied correctly after the closure.