Cancel a card without dinging
your score
It's counterintuitive, but canceling a credit card can
hurt your credit score. Use this work sheet to dump some of your available credit
without denting your score.
A note on your credit score
reflecting that the closing was initiated by the customer and not the creditor
is the ultimate goal. Bear in mind that if the ratio of debt to available credit
rises dramatically as a result of the canceled credit card, your credit will dip.
How
to cancel a credit card
Step
1: Pay off the balance in full.
•
Make
a note of the date the payment hits the account here.
Date: ___________________________________
Step
2: Notify the credit issuer by phone that you'd like to cancel the account.
•
Call
the customer service number, confirm that the balance is zero and there are no
pending fees or lagging interest charges. Then tell them to cancel the card.
•
Ask
to whom you can send a letter verifying your request, sending the letter (step
3) will be easier with a real person as the recipient.
•
Make
a note here of the person spoken with and the date.
Customer service representative:
_________________________________________
Date: ____________________________________
Step
3: Notify the issuer in writing.
•
Use
this form letter as a guide for your letter that will explain that you're
canceling the card and you would like your credit report to reflect the fact that
you requested the account closure. Include your name, address and account number.
•
Keep
a copy of the letter and send by certified or return receipt requested to prove
that it was received.
•
Write
the date here that the letter was mailed and the date of receipt if possible.
Date: ______________________________
Date received: _______________________
Step
4: Wait a month and request your credit report.
•
Verify
that the account reports being closed by the customer, not the creditor. If it's
correct, congratulations! If not, use this
work sheet to fix credit reporting errors.
