Things To Remember When Cancelling Biz Credit Cards
American Entrepreneurship:
We’ve all seen images of people wielding a pair of scissors and slicing up their credit cards, promising to never go into debt again.
However, truly canceling a credit card takes more than cutting up a piece of plastic. It may also not be a smart idea if you want to stay credit worthy.Here are ten important things to remember if you are contemplating closing your credit card accounts:
1. Do not cancel an account that still retains a balance. Keep an account open until you have paid it off in full. Companies can raise your interest rate up to the maximum allowed in order to penalize you for closing the account if you still have a balance.
2. If you plan on making any large purchases in the near future, such as a house or a vehicle, you may want to reconsider closing your accounts. It may decrease your credit worthiness. If you plan to cancel several cards in the same time period, you may reduce your credit score.
3. If you just have too many open accounts, consider consolidating your card balances on lower interest cards and then close the remaining accounts.
4. When contacting the credit card company, make sure you are prepared to write down the details of the conversation, including the date, the time, and with whom you spoke about closing the account.
5. Ask for a written confirmation to be sent by mail. File the confirmation when you receive it in case there is ever any question about the status of the account. If you do not receive a written confirmation, follow up with the company to ensure your request has been honored.
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