Credit Card Cancellation

How to Properly Terminate a Credit Account

Sep 3, 2009 Bryan Parker

Learn the important steps required in the credit card cancellation process and understand what consumers need to know before closing an account.

The termination of a credit card account is a bold move and many times can be a tough decision. However, thanks to proper education and understanding, the cancellation process can be stress free and simplistic.

By following basic steps, the consumer will not only have proper financial education, but can also safeguard against mistakes or errors in the cancellation process.

Credit Card Cancellation Guide

The first step in the cancellation process is simple knowledge. Consumers are encouraged to gather all necessary information such as the customer service number, and the proper mailing address. Before the cancellation process can begin, it's paramount that all contact information is correct and verified.

In respect to the actual card, consumers are advised to pay the full balance of the card in question. All consumers who are embarking on the cancellation process must pay the entire balance before notifying the credit card company of the cancellation.

Consumers who inform the issuer prior to paying off the balance may receive increased interest rates on the total balance. Pay off the card...then fulfill the obligation to contact the credit card company.

When a consumer has paid off the credit card, it's important to confirm the total balance is zero. Customer service representatives need to be contacted and the overall balance needs to be officially confirmed. Never assume the balance is “zero” just because the overall amount has been paid.

It's imperative to make sure the zero balance has been officially documented. Once the balance is confirmed, inform the representative of the cancellation. Consumers are advised to be prepared for a "stay plea" from the representative, but handle the situation with professionalism. Consumers are encouraged to be stern yet polite when addressing the company's customer service representative.

Credit Card Safeguards

Once a credit card has been canceled, consumers are encouraged to engage in several "follow up" safeguards. The most paramount productivity involves writing a letter. Never assume the card has been "officially canceled" just because the customer service representative declares the card terminated.

Consumers are encouraged to compose a brief letter to the individual’s card issuer simply declaring cancellation of the card. Also, consumers are advised to request account closure confirmation. Experts suggest such doings needs to be completed via telephone.

In the letter the consumer must also include basics such as the consumer’s name, address, phone number, and the account number of the card being canceled. Finally, the consumer in question is advised to ask for a modification on the individual’s credit report stating the card has been canceled via consumer's request.

Credit Report Amendment

The actual cancellation process may take months, even though the "direct cancellation" can be done with just a phone call. Consumers are advised to simply wait until all official parties have been informed and the individual’s credit report has been changed accordingly.

When all notifications and changes have been made, the consumer must make a point to note all changes which have been made to the individuals credit report. The account should read "closed" if all proper actions have been taken and completed.

Source

CreditCards.com

The copyright of the article Credit Card Cancellation in Personal Budgeting/Finance is owned by Bryan Parker. Permission to republish Credit Card Cancellation in print or online must be granted by the author in writing.

Credit Card Cancellation	Credit Card Cancellation Information	Credit Card Safeguards and Recommendations
Gather Important Information for Customer Service	Monitor Credit Report