Credit cards are a great way to maintain your financial standing and improve your rating. On the other hand, they can also be a problem for some individuals. Just as the application of a credit card requires some thought, if you determine that you want to cancel one of your credit cards, there is a right and a wrong way to do it. There are a number of reasons for a holder to get rid of a card, high interest rate, too much available credit, yes there is such a thing. There is also the possibility of joint ownership or credit card fraud on that card.
A Clean Slate
The first thing you will need to establish is that there is no balance on the credit card, because if you attempt to close the card with a balance, the bank or financial institution will not agree to it. Double-check your records and make certain that you did not approve one of your bills to be automatically taken out of the account you are attempting to close. If a revolving withdrawal exists, contact the company in question and have the transaction removed or placed on another card instead. Make certain to verify when that change will go into effect.
Communication Is Key
Most credit-card companies are not in a hurry to close a card, especially one that can generate the potential for interest being earned. You must communicate with the financial institution in a number of ways, just so you know that they got the message. Begin your
communication attempts with a phone call to the customer care number. Never assume that the job is done through that phone call, in fact, unless you follow up in writing, chances are that your credit card will still remain open. Write down all the pertinent information from your phone call, especially things like who you spoke to, their position in the company and the time of day or night.
Confirm The Transaction
The easiest thing in the world is for paperwork or instructions to fall through the cracks, especially if the issuing company preferred not to see you go. It is in your best interest to obtain a credit report to confirm that your requests have been honored. In most cases, the credit card company will send you a confirmation that your account has been closed, keep in mind that if you missed a step, especially as it pertains to someone whom you approved a payment for, you will still be responsible for the payment.
The Follow Up
You would think that closing a credit card would be the end of it; however, the communication between the company and yourself may just be getting started. You should expect several attempts by the company to get you reinstated with another card; this is good news because it simply confirms that your credit card was closed. If you don’t see this kind of communication, and you never requested that they cease communication with you, wait a few months and request another credit report on yourself, just to be sure.