If you’re a student and you find yourself having trouble juggling between your credit card payments, it’s probably time for you to consider canceling some of your credit card accounts. However, before you call up your credit card issuer to close your account, there are some things you should carefully consider. Let’s discuss the correct steps of canceling an unwanted credit card.
Don’t Just Cancel Any Card
Why should you be very careful when closing out a credit card account? First of all, canceling the wrong account can badly affect your personal credit history. Yes, closing out the wrong account can significantly pull down your credit score. Why so?
If you have an existing balance in one of your credit cards, you should pay it off first before canceling. Never cancel a card if you have a unpaid balance. If you do, your credit card issuer will report it as defaulted charges and will be reflected in your credit report.
Don’t close out your old credit card accounts especially if that was your first card. Remember, the credit history you’ve built is largely based on that particular account. If you cancel, it would be like deleting the oldest parts of your credit history. If you must cancel a student credit card, pick out the ones that are more recent.
What if you want to cancel your old student credit card because of its high interest rate? One way to deal with it is call up your credit card issuer and request for a lower rate. Yes, you can actually make this request from your credit card company especially if you’ve been a long time customer and a good payer. Tell your credit card company that you may be forced to close the account because of the high rate. Even if your request isn’t granted, it is still worth a try.
You can still keep your old credit card without letting the high interest rate bother you. How? Use your card occasionally for small purchases and pay off your balance in full immediately. Do not wait until your due date comes before submitting your payment. If possible, pay off your balance the same day you made the purchase. This way, you won’t have to pay the additional interest rate cost and you’ll still be able to keep your student credit card active.
How to Cancel Unwanted Student Credit Cards
Again, seriously consider the student credit cards you own and pick out one that is safe to close out. Once you’ve made the choice, you must call the issuer and make the request. The representative of your credit card company may try to change your mind by making offers.
You will surely be asked why you want to close the account. If you’ve already decided to cancel the account, just tell the representative politely that you’ve made a final decision. Don’t forget to note the name of representative you’ve spoken with.
Follow up your phone-in request with a letter. Stipulate in your letter that you are personally requesting to close the account and that there are currently no problems in your active account whatsoever. It may take a few weeks or a month before your credit card issuer sends a notice that your request has been done. Once you do, check your credit report right away to make sure that the account has indeed been closed.
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