How to Cancel a Credit Card
Having too many credit cards is an easy way to get yourself into some financial trouble. When you have so many opportunities to put your purchases on credit, it just because easy to do so and worry about things later. After some time, all of this can add up, and you can get yourself into some serious issues. To avoid all of this trouble, it may be in your best interest to think about canceling one of your credit cards. If you no longer have all that money to spend, then you won't get into further debt.
Canceling a credit card can be an effective way of curbing your spending and turning into your own personal debt manager. If you are thinking about doing this, then you need to check your credit card agreement that came when you signed up. Different companies are going to have various ways of dealing with canceled accounts, so you need to be aware of what your credit card company will require of you. If you aren't aware of these requirements, then you run the risk of doing something wrong and facing some financial consequences.
Considerations Before You Cancel
One thing to consider before you do cancel a credit card is that it can have an effect on your credit score. A lot of what goes into your credit score is how long you have maintained credit for. If you are going to cancel a card that you have had for a long time, then it may erase some of this history that has bolstered your credit score for some time. You should think about this carefully before you actually go through with cancellation, as you don't really want to do anything that will harm your credit score.
You also need to consider what your balance currently is on your credit card. If you owe money on it, then you need to figure out a way to pay it off before you cancel it. If you don't consider this and you just cancel your card, you are going to owe whatever is left on it. Often, these payments are due immediately, and you may not really have all of the money at once to do this. If you are thinking of canceling a card, work on paying it off first, and this will make things much easier in the long run.
Canceling the Card
In order to actually cancel your card, you will need to speak to the appropriate person at your credit card company. You can usually locate this person by contacting the customer service number. After you locate the right person, you will need to provide some information to them, as well as your reason for wanting to cancel. Your credit card company may try to get you to reconsider, but all you have to do is remain firm throughout the conversation. Whatever steps you are instructed to take, do so with care and things will be taken care of.
You might also want to consider writing a letter to your credit card company after you speak to someone over the phone. It's likely that the whole process can get settled over the telephone, but you may want to take some extra precautions. Getting your request down in writing is one way to ensure that things will be handled in the right way. Taking this step is essential when you are considering how to cancel a credit card. Make sure that you keep a copy of this letter for yourself, in the event that it gets lost in the mail.
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State Guides to Credit Card Laws
- North Carolina
- West Virginia