Canceling a credit card can be extremely tricky if you are not aware of the steps associated with it. It is a process that requires pre-planning and careful consideration of every little factor. But do not stress! We will break down every step for you!
Before diving into the intricacies of canceling a credit card, we must warn you that it is rarely advisable to cancel one unless you face certain circumstances. It can backfire in some ways.
The two ways in which cancellation of a credit card can do more harm than good are:
However, do not worry! If you need to cancel a credit card, we will ensure that you are well guided before leaping, and do not face any loss in terms of the two factors mentioned above.
Let's discuss the reasons why a credit card should generally be canceled.
The best reason to cancel a credit card is if the fee you are being charged for is too high. This can be a troublesome factor, especially for people who have more than one credit card.
The other reason for canceling a credit card is a high-interest rate on it. If you cannot afford to keep up with the rate mentioned, then you should opt for closing the credit card right away by following our set of instructions closely!
Another factor that can be considered for the cancellation of a card is a lack of rewards or perks available through it. If you are not getting much out of it, you can decide to cancel it at any time, albeit carefully, by following every guideline.
We have stressed on the factors that should be considered before making the leap and canceling the card. Now that you are well informed and still keen on canceling a card, you may be wondering about the process linked with it. Before diving into the process, we need to talk about a few other factors.
You cannot merely snap your card in half or call the branch of the bank you are associated with, and ask them to cancel your card. We wish it were that simple!
To cancel a card, you need to be wholly present and have to invest your time and energy in the process. You may have to make a certain number of phone calls, depending on your service providers, and write a certain number of emails or letters. In addition to this, you may also have to check on your credit status a certain amount of times. You also have to plan and follow a layout of the entire process, incorporating some of the steps into your respective schedules.
We do not mean to scare you from the massive demand of the task but want to make you aware that this process cannot be completed in one sitting, so you should brace yourself for that beforehand!
Redeem Any Perks Why waste a good deal that comes with your credit card? Make sure you attain every credit that is associated with your card. If you do not, you will lose something that would benefit you and allow yourself to be negatively impacted by losing score.
Bring Your Credit Score to Zero
You need to ensure that the payable amount in your credit account is cleared. If your score is not zero, it can be viewed as if you did not balance your score, which can eventually negatively impact your score. Repay every penny on your card and ensure that you have also attained the perks mentioned above.
Along with this, you also need to ensure that you move your subscriptions et cetera to another card. If you do not proceed with this step, you may lose valuable information in the process and have to redo the entire process of subscribing with another card or changing the information to another card. It is recommended to do this step before canceling your card so that you can sort out any unforeseeable error beforehand. Check that your score is 0 before proceeding to the next stage.
Apply for Cancellation
This process takes place through two main steps. Firstly, you need to get into touch with your service provider. This should preferably be done through a call. We recommend a call rather than an email to articulate your request clearly, clear any issues you have, and get a logical sequence of steps by the issuer, all in the space of one call. Not only is this more time-efficient, but also a better way to get reliable information. Of course, you can also mail according to your preference, but a verbal request and gathering of information are better.
When you call the provider, you need to ensure that you communicate your details and be stable in your decision. It is the job of the service provider to talk you out of your choice by offering you alternatives. If you like an offer, you can respond to it and grasp the deal, but if not, then proceed by declining and sticking to your request for credit card cancellation.
It is better if you made sure that the person you talk to gives you all the steps of the process and tells you when each step is likely to take place (give you a rough outline of how long all the steps will take). Also, be sure that you get information about the person you communicate with, namely his or her name or position.
Last but not least, get a mailing address from the service provider.
The mailing address is essential in case the verbal request goes astray or forgotten. This way, you will also have solid proof of having sent a request. It's also more professional this way!
Once you have the address, write a letter to your service provider about canceling your credit card with your details. You can also mention a 0 score and the call in which you first asked for cancellation, citing the person you had initially communicated with. You can also request for a follow-up.
Having done this, you need to monitor or track your letter to ensure that it reaches the destination timely. You can also use this as proof if there is any delay in the cancellation of your card.
It is not easy to check whether a card has been closed right away because it is a lengthy process. However, even if the time has exceeded the tentative outline provided to you, try to be patient, or get in touch with the bank.
You must check your credit balance afterward, however. Make sure the status reads canceled by consumer! This way, your score will not be impacted negatively. You can check your score through a handful of services, for free, online. We recommend you use a reliable source and have some backup research on this aspect too!
And that's it! The process is complete with this final stage.
If you opt for the cancellation of your card, you may want to look at the aspects that make a debit card more appealing than a credit card. Perhaps this can be your next step, after the rocky security of a credit card.
People in certain instances prefer a debit card if they have become wary of debts! You do not have to consider paying off the money that you borrowed from the credit on your card.
To compound this fact, with a debit card, you also do not have to worry about paying off high-interest rates! Credit cards incorporate interests, and, as mentioned above, it can be one of the reasons people opt for the cancellation of their credit cards altogether. A debit card is a perfect solution to this problem.
A debit card also draws on your already existing funds in your bank account, and, this way, can keep you in check in terms of how much you spend on any given thing. This can be important in the world of temptations nowadays.
As we have mentioned a couple of times, cancellation of a card can be a lengthy process that requires you to be patient and to invest energy in it; if you are up for the challenge or cannot bear the cons of the card any longer, follow our step by step guide, and we assure you, you will not face any issues in the process! We hope this is a smooth transition for you and requires minimal energy. Good luck with this venture!
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