So you’ve probably thought this through. If not, hold the scissors! Cancelling a credit card is more extensive of a procedure than just physically scissoring at it. Yes, I know, no dramatic filmic moment to recreate here, guys. What you do want to do, however, is to protect your credit score from dropping whilst cancelling it for good.
The first thing to ask yourself is do you actually need to cancel your credit card? Although it doesn’t hurt to have a card lying around, the second question you need to ask yourself is: why is it lying around?
Do you have a bad attitude towards spending or did you run low on balance? Irrespective of whatever the case may be, having a line of credit on a card with little to no balance will help your credit score, coming handy in times of emergencies. So maybe cancelling the card isn’t the best choice here. However if you have more than your fair share of cards or just a really uncontrollable urge to go on a spree, feel free to read ahead.
Paying Off the Dues
Before you grab those scissors, (you know you want to) you should ensure that all the existing balance has been paid off. If this isn’t financially possible for you, you may want to transfer this balance onto another card you don’t intend to cancel. In addition to this, you want to make sure that you’ve tapped in your card to receive all cash out rewards. This because once the card is cancelled, the rewards will be too.
Contacting Customer Care
To cancel the card, you must disclose this to the agency or corporation that issued you the card. To do this, look for the number on the back of your card. This will connect you directly to customer care, where you can tell them that you’ve decided to cancel you card and close your account. The representative of the cooperation may ask why you want to close the account (and even try to talk you out of it).It’s handy to have a bill and your card in front of you when calling so all information regarding it can be giving to you. Additionally, if possible, note down the representatives’ name for future calls to circumvent conflicts that may arise later. If you do plan on cancelling the card, it’s best to do this in writing as well, either by emailing the agency or writing them a letter.
Reconsidering the Cancellation
You may feel like you now have more knowledge about the matter than you did initially, after contacting customer care. This may mean that you’re willing to look for counter offers such as credit points and lower interest rate. If the offers aren’t good enough, you may want to stand your ground and stick to the cards cancellation.
Protecting Credit Score
The most crucial aspect in this entire procedure is to follow the plan without hurting your credit score. To do this, you may want to consider cancelling your card after you’ve been issued a new one and not in the process of it. Before cancellation, you may want to increase your credit score incase your credit does decrease, keeping it at a constant.
Reviewing the Credit Report
After the procedure above is followed, the last thing to ensure the cancellation is to review your credit report. You may need to request this from the cooperation that is responsible for issuing you the card. When you receive the report, make sure it is accurate and contact customer care if the report is inaccurate.