How to Close Old Credit Card Accounts
Credit cards can be extremely useful when used by a financially savvy person. However, these cards can easily spiral out of control and lead people into thousands of dollars of debt. Closing old credit card accounts is sometimes a good move for people who have too many credit cards or who do not wish to use certain cards anymore. Closing an old account is simple and takes very little time.
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Instructions
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Pay your entire balance. Banks can hike the interest rates on your outstanding balance if you tell them you're leaving, so do not inform them of anything before you pay off the entire balance.
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Write down the contact information. The number to reach the credit card issuer will be on the back of your card and on the website. Jot down the mailing address too.
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Inform the bank you are canceling your card. First call customer service and make sure your balance is zero. Then tell the bank you wish to cancel your card. Many banks train their customer service representatives to try to convince you to stay with them, but make it clear you have no wish to do so.
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Send a letter. Send the written cancellation request in conjunction with calling customer service. Include your name, address, phone number and account number in the letter. Request written confirmation that your card has been canceled. Make it clear that the account is being closed at the "request of the consumer." Lenders can record that they closed your account if you do not do this, and a consumer-closed account reflects much better on a credit report than a lender-closed one.
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Tips & Warnings
Do not close too many old credit card accounts at one time. Closing old accounts has a negative impact on your credit score because it shortens the average length of accounts on your credit report.
References
- Photo Credit credit card image by jimcox40 from Fotolia.com
