Things To Keep In Mind While Cancelling Credit Cards!
These days, credit card companies and banks have launched a number of different credit cards in the market- from retail to travel rewards to cash back. Check out Chase Freedom Unlimited Reviews to know more about its exciting deals. It’s easy to get washed away in these big waves easy money, reward points and discounts and collect more cards than we even need. According to a 2016 Gallup poll, an average American has 3.4 credit cards. So, how do you get rid of some of your cards? Simply snipping your cards with a pair of scissors won’t do the trick. Cancelling credit cards requires following certain steps to close the credit card account with a minimum damage to your credit score.
Table of Content
- 1 Cancelling Credit Cards
- 1.1 Reasons why you should cancel a credit card
Cancelling Credit Cards
Do you want to close several accounts? Close it one at a time
To start it off, cancel the cards which charge you fees. On top of this, it is better to cancel new cards before doing so with the old ones. Keeping those cards with decent rewards programs might be a good idea. Btw Have You Ever Wondered How A Credit Card Works?
Pay off your existing balance or transfer it before closing the account
You must pay off your balance in full, or if you have a card with great terms, transfer the balance. It is not possible to close the account with a pending balance. You can talk to your issuer in case you don’t want any further charges to be accumulated on the card until paying off the balance. Ask them to freeze the card till the balance is paid and the card closed.
Cancelling accounts online or on phone
You can cancel some of your accounts online (the easiest and convenient way). Or you can call your credit card company and ask them to do so. But be careful, that sales rep you will be talking to will try their best to make you stay.
Watch your credit report closely
You need to closely monitor your credit report as it may take a few weeks for changes to reflect in the report. You would also need to see your credit score to check for any damage done by the cancellation. Do you know How To Improve Credit Score Immediately?
While going through the whole process of cancelling your credit card, it is important that you keep track of who you talk to, what they said and when. This is to keep your records ready in case something goes wrong.
Reasons why you should cancel a credit card
To avoid the annual fee
You can contact your creditor to waive the annual fee if he refuses to do so, you might want to go ahead and close the account. Or you can try and downgrade your card, but that will probably downgrade the rewards you earn, too.
Controlling your spending habits
If you tend to spend too much and rely on your card, accruing a huge debt, closing your credit card will help you control your temptations. If you need short term loans, then check out LendUp Reviews.
For your finance simplification
Finance simplification is always the best idea. If you are having trouble handling too many credit cards and tracking your accounts and payments, maybe getting rid of those extra cards is the right decision.