Do you want to cancel your credit card because of its high interest rate? Or do you want to cut down the number of credit cards you use? Whatever your reason is for wanting to cancel, here is a guide on how do it the safe and proper way:

Never cancel with a balance. Rule number one is to zero-in your balance before requesting to cancel. Leaving a balance in your account can be damaging to your personal credit as it will be reflected in your credit report.

Call your issuer. At the back of your credit card, you can find the customer service number of your issuer. Dial the number and confirm if there you have any balances left in your account. Make sure that the representative confirms that you have zero charges before requesting to cancel.

You will be asked for a reason as to why you want to close your account.  The representative may also try to talk you out of your decision by making a tempting offer such as a lower APR.  If you are sure that you do not want to use the credit card, then be firm about your decision.

Follow up with a letter. Send a follow-up letter to your credit card company informing your request.    Ask the representative for the name of the person to whom you can address your follow-up letter to. Be sure to state in your letter that you are the one requesting to close the account because of personal preference. Include your name, address and account number and send your letter via registered mail.

Check your credit report. It can take up to 30 days for your account the deactivation process to be complete. Order a copy of your credit report from the three major credit bureaus (Experian, Equifax, TransUnion). In your report, make sure that there is a statement that reads, ‘Closed at customer’s request’.

[Article: How to Get Your Free Credit Report]

If the remark states “Closed by Creditor” or a similar statement, call up your credit card company and inform them that you volunteered to cancel and request that the wrong remark be erased from your credit report.  Follow up your call with another letter (enclosed with your first letter) and send it again through registered mail.  After a month, check your credit report to verify if the correction has been made.

[Article: How to Get Your Free Credit Report]

About the Author

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. NHBS also has a list of recommended Credit Reports Online

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About Melanie Mathis

Melanie Mathis is a credit analyst and a writer for 8 years. She has been participating in the programs of NHBS, Inc such as their continuous effort in giving out Free Credit Repair and Building Ebook. Connect with Melanie Mathis on Google+