Does All This Make You Want To Cancel Your Credit Card?
Hey, even canceling a credit card can get you in trouble, if you don't do it correctly.
You can't cancel a credit card if you owe money on your card.
Canceling a credit card can actually hurt your credit, if it looks like the company cancelled your card, or if it lowers the amount of credit you have generally.
Many credit card companies charge you a fee to cancel their card. If you don't pay that fee, the company will eventually turn your account over to a collection agency, and that $30 bill could turn into a bill for thousands.
Canceling a credit card the right way:
- Call your credit card company and make sure you have a zero balance. A number is on your statement.
- Tell the person you want to cancel your card, and get the name of the person.
- Don't be talked out of canceling the card! The company will usually try to get you to change your mind.
- Write a letter to the company saying you have voluntarily cancelled your card, and instructing them to notify the credit bureaus that your cancellation was voluntary.