Chapter 8:
Get Rid Of Unused Accounts
Synopsis
Whether it’s a charge card or bank account, write a letter calling for the account to be formally closed. Not only will this better your credit score, it's a useful way to prevent money from being scattered all over the place. Don’t let department stores and charge card companies lure you into opening fresh accounts by offering positive interest rates and purchase discounts. It’s simple for credit to get out of control by taking every credit offer that comes along.
Cancel It
You would like to cancel your charge card. Before you gather up your scissors, know this: Canceling a charge card correctly involves more than simply clipping it in two. It calls for you following some necessary steps.
You need to know that depending upon your total available credit, closing an account may hurt your credit score. To close card accounts without affecting one's credit score, you need only have "0" balances on your credit report for all of your active charge cards. That's because if you have "0" balances your credit use rate is therefore "0", and you can't raise it and possibly harm your score by closing one or more of the active charge accounts.
As well, the age of a charge card account is likewise worth considering. The time an account has been open is an element in credit scores. A longer positive account is beneficial to credit scores. So, ending an older account in essence may have a more damaging impact.
Closing an account the correct way takes time, patience and organization. But it's crucial to be thorough in order to cancel your charge card properly.
To start the process of closing the account, accumulate and write down the customer service number and the mailing address you'll require. The 800 number is on your charge card, monthly statement and the issuer's site; the mailing address is likewise on the site and the monthly statement.
Closing a charge card that has a balance might not be the brightest thing to do. If you inform the card issuer that you're entertaining leaving, the lender may raise rates of interest on the owed balance. So pay off your charge card fully before you let the card issuer know you're leaving. Or, if you've been burned by a rate increase and you are able to find a balance transfer charge card with a better deal, shift the balance.
Once you get hold of the bank's customer service representative, begin by confirming that the balance on your charge card is "0". Don't assume that the balance is zero because you paid the full amount on your charge card bill. Interest stays on to accumulate between the time the issuer sent off the bill and when they got your check.
When you're sure the balance is "0", inform them that you're canceling the card. Although a few charge card companies will let you cancel without even talking to a representative, others might be less accommodating. Be prepared to have the customer service rep attempt and talk you out of closing your account. They'll be very convincing, so if this is what you chose, then tell them courteously once again by letting them know you wish the account closed at once.
For added confidence (just in case the customer service rep makes an error), write a short cancellation letter to the card issuer, addressed to the name provided. Request written verification of the account's closure. This is a must and is to be done in alignment with the telephone call. The letter ought to include your name, address, number and account number, and particulars from your earlier telephone call. Likewise, state that you wish your credit report to reflect that the account was "closed at the consumer's request."
Being additionally cautious isn't a bad thing. Enfolded with the letter, include the check number (or a copy of the canceled check or additional payment confirmation) that you used to pay for your account balance, as well as the date the check cleared your bank. Create a copy of the letter for your records. In addition, you are able to place your demolished charge card in the envelope with the letter. Send the letter thru certified mail or return receipt requested so you are able to prove the company got your letter.
Then you wait. Getting the card canceled might take a month or more, as a charge card issuer is a "big bureaucracy,‖. After that time, have a look at a copy of your credit report to make certain the account is marked as "closed" on your credit report. If the account seems open, duplicate the process.
As you carry out the process of canceling your charge card, you might want to keep thorough notes on who you talked to, what they stated and when. That way, if anything fails, you'll have all the facts recorded. Once you get a return receipt from your certified mail, keep it with the log you're keeping and note the date the receipt comes in.
No comments:
Post a Comment