Put the scissors down.
Lets look first at the steps you oughta take to cancel your credit card.
The first step to canceling a credit card is to stop using it andeliminate any debt on the account.
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so that achieve the first step of paying off your balance, you gotta look into step two.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
You must cancel those subscriptions or use another way to pay them.
reach out to the credit card company
Prepare to scream I want to quit the gym!
The person you speak to is going to take a stab at get you to change your mind.
You do not need to explain yourself to them.
Just tell them to cancel the account.
Write a letter or send an email confirming your decision to cancel the card.
Include your name, account number, and home address.
Its important to have something in writing just in case.
However, you should consider this move carefully, because it can have an impact on your credit score.
But for those whove used their credit responsibly, canceling an account can damage yourcredit score.
Your payment history accounts for approximately 35% of your credit score.
Making credit card payments on time every month positively contributes to this.
Eliminate the card, and you reduce the number of accounts that count toward your on-time payments.
This may be the strongest argument for holding onto your credit card.
The credit utilization ratio represents how much of your available credit you actually use.
Closing a credit card could send your score up way up.
For example, lets say you had two credit cards each with a credit limit of $8,000.
And you cant replace history easily that only comes with holding onto an account over time.
you could do that either bypaying it offortransferring the balanceto another card.
Want to close a card when it still has a balance?
Next, youll need to cancel any recurring payments you have set up for the account.
That way you wont be stuck with a late fee because your annual home insurance premium didnt get paid.
However, some issuers are extending the time before your points expire.
you might use the points now to book a future trip.
The only way to know for sure: Review your credit card rewards agreement.
Contact Customer Service to exit the Account
Are you strong enough to say no?
Before you hang up, request written confirmation that the account is closed with a $0 balance.
This helps prevent nasty surprise fees or damage to your credit score for non-payment.
If you dont receive the confirmation letter within a few weeks, send your own written cancellation letter.
you’ve got the option to order yours for free every 12 months through the websiteannualcreditreport.com.
(you’ve got the option to also use most shredders to get the desired effect).
Not directly, no.
These can have a negative impact on your score.
Yes, you might.
However, youre still responsible for paying off the balance, and that balance can still accrue interest.
Its unlikely you will be able to cancel your credit card without talking to someone.
it’s possible for you to use a chat feature or send a secure message from your account.
Tiffany Wendeln Connors is a deputy editor at The Penny Hoarder.
Contributors Dave Schafer and Kent McDill updated this report.
When you log into your bank account, how do your savings look?
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
