How to close a credit card account

Dear Debt Adviser,
When closing credit card accounts, what type of letter is needed and how do you word your request to close the account? Do you need to send it certified mail? Any information you could provide would be helpful. Thanks,
-- Jim

Dear Jim,
Good question! To some it may seem like just tidying up your accounts that you don't use any longer, but in reality it can be an important part of your overall credit score! Ten percent of your FICO score is determined by the types and number of accounts you have open.

To close your credit card accounts I would recommend that you contact each of your creditors by phone and ask for instructions on how to close your account. You can find the customer service phone number on the back of the card or on your statement. Write down the name of whom you are speaking with and any information that he or she gives you. You may also ask the customer service representative to record the call, so that the company has record of your request, too.

Be aware that when you call you may be asked why you want to close the account and it is likely the person you speak with will try to convince you to remain a customer. Some representatives may be persistent so be prepared to stick to your plan of getting information on how to close the account.

Some creditors will close the account while you are on the phone, others will want the request in writing. For the later, you will likely be instructed to send a letter stating you are requesting that your account be closed and you may be asked to include your cut-up card(s). Items you will want to include in the letter:

• Your name and address
• Account number
• Request to close account
• Request that the creditor report to the credit bureaus that the account was "closed at request of cardholder."
• Request that you be mailed confirmation

The letter may look something like this:

Dear Sir:

I am writing in reference to account number 4444-4444-4444-4444. As the named card holder I am requesting that the account be closed, effective immediately and that a notation is included in the report to the credit bureaus that the account was "closed by request of cardholder."

My destroyed card(s) is enclosed. Please notify me in writing to confirm that my account has been closed.

Thank you for your attention in this matter,
Your Name,
Address

Send the letter by certified, return receipt requested mail if you are really fastidious or just have a lot of bad luck, which will provide you with proof that your creditor received the letter. Give the creditor 30 days to close the account and then check your credit reports.

The accounts that were closed should be listed as "closed by cardholder request." If any of the accounts are listed as "active" or "closed by creditor," you will need to contact the creditor again by phone and letter requesting that the error be corrected. Include a copy of the original letter requesting that the account be closed and a copy of the certified receipt. You should mail the second letter certified, return receipt requested.

Be sure to check your credit reports again 30 days after you receive the certified receipt rom your second letter to assure that the accounts are listed correctly. If you experience any trouble with the creditor reporting to the bureau incorrectly and can not get resolution with the creditor, file a dispute with the credit bureau and include your letters and certified receipt(s). The bureau is required to investigate and correct the listing if it finds the listing is inaccurate.

Good luck!

The Debt Adviser, Steve Bucci, is the president of Money Management International Financial Education Foundation. Visit MMI for additional debt advice or click here to ask a debt question.