Steps to Cancel a Credit Card
A credit card is one of the best possible tools for anyone who wants to build a solid credit score and earn some rewards while doing it. However, that being said, at some point, one may need to get rid of some of the cards if it starts piling up. In this article, we are going to discuss how to cancel your credit card in six easy steps. Let’s begin!
Always Make Sure to Pay off the Balance Completely
This is the foremost important step for canceling a credit card. If you happen to close a credit card account without completely paying off the balance then you could very well end up paying a lot of unnecessary fees and charges. Therefore, if you can pay it off then definitely do so. Otherwise, you can consider transferring the debt to another card with an added balance transfer fee.
Try to Redeem all Available Rewards
If you choose to close a rewards credit card then you will most likely have to forgo any cash-back, miles, or points that you collected over time but didn’t get a chance to use. Also, if you happened to have any rewards that you haven’t redeemed, then you will need to check your rewards balance and figure out if it is possible to convert those rewards into statement credits. If it does seem to be possible then you can go ahead and apply them to travel or use them to make retail purchases.
Get in Touch With Your Credit Card Issuer
Now that you have taken care of all the necessary steps before canceling your credit card, you need to establish contact with your credit card issuer. After you have done so, make sure to find out whether you will be able to close the account online or over the phone itself. You can easily find the customer service number, as it is mostly located on the back of the credit card all the time. It also happens to appear on your monthly statements and is available on the website of the card issuer.
Make Sure to Use a Letter to Follow Up With
It is always best to make sure you follow up with a letter. It will help out in case there happens to be a communication mishap or error over the phone call or online. Also, when you send the letter, make sure to also provide a copy of the canceled check or any other proof that is required to show that you paid off your account balance successfully.
Take a Look at Your Credit Report
After 30 days of the cancellation request, it is important that you review your credit report. It will help you make sure that the account you closed was actually closed indeed.
Cut Up the Card and Discard it Safely
Once you’re completely sure that your credit card account was completely closed, make sure you cut up the card and discard it safely. This way you will most likely avoid becoming the victim of any kind of fraud or identity theft.
