How do I ... Close a credit card account?

What you need to know

First, if you have an outstanding balance, do not close a card or call to cancel one. Your creditor may jack up your rates as a penalty for leaving.

Also, consider the effect that closing could have on your credit score.

When you've made up your mind to jump ship, notify your issuer by phone. Keep a record of all communication. Your creditor will likely want to keep your business and bring a counteroffer to the table. If you don't like it, press on.

Your next step is to put your intentions in writing. Afterward, wait 30 days for your request to be processed.

After waiting patiently, check your credit report. It should be noted that your account was closed "by cardholder request" rather than "by creditor request." If the information is inaccurate, be prepared to start over again.

Here are the steps to closing your credit card account:

• Notify your card issuer by phone.
• Follow up by notifying the card issuer in writing.
• Get a copy of your credit report and make sure it's accurate.
• Repeat, if necessary.