Closing Credit Card Accounts – Taking The Proper Steps To Protect Your Credit Rating
Closing Credit Card Accounts - Taking The Proper Steps To Protect Your Credit Rating
If you have one or more credit card accounts you would like to close, make certain to take the correct steps in order to protect your credit rating. You will need to pay off the balance on any credit card accounts you wish to close. Notify the credit card company by phone to confirm that you have a zero balance. If you alert the credit card company that you wish to cancel while you still have an outstanding balance, your interest rate could rise dramatically. After you are certain you have a zero balance, let the credit card company know that you are closing your account. Most credit card companies will try to convince you not to close your account by offering you lower interest rates and/or rewards in an attempt to keep you as a customer. You may or may not want to keep the credit card depending on the offers you receive.
After notifying the credit card company by phone, you will need to follow up with a letter stating that you are officially closing your account. Send the letter by certified mail so that you will be able to prove the company received the letter. You will need to wait 30 days, after which you should check your credit report to make sure your account has been closed. Occasionally a credit bureau will list closed accounts as being closed by the creditor and not by the customer. If your credit report states that the issuer closed your account, it could reflect badly upon your credit score. Unless your credit report states that your account was closed upon your request, you will need to notify both the issuer of the credit card and the credit bureaus in writing to correct this mistake.
If you have one or more credit card accounts you would like to close, make certain to take the correct steps in order to protect your credit rating. You will need to pay off the balance on any credit card accounts you wish to close. Notify the credit card company by phone to confirm that you have a zero balance. If you alert the credit card company that you wish to cancel while you still have an outstanding balance, your interest rate could rise dramatically. After you are certain you have a zero balance, let the credit card company know that you are closing your account. Most credit card companies will try to convince you not to close your account by offering you lower interest rates and/or rewards in an attempt to keep you as a customer. You may or may not want to keep the credit card depending on the offers you receive.
After notifying the credit card company by phone, you will need to follow up with a letter stating that you are officially closing your account. Send the letter by certified mail so that you will be able to prove the company received the letter. You will need to wait 30 days, after which you should check your credit report to make sure your account has been closed. Occasionally a credit bureau will list closed accounts as being closed by the creditor and not by the customer. If your credit report states that the issuer closed your account, it could reflect badly upon your credit score. Unless your credit report states that your account was closed upon your request, you will need to notify both the issuer of the credit card and the credit bureaus in writing to correct this mistake.
