Question
Due to many factors I've decided to cancel a bunch of my many credit cards that I don't often use. Can anyone suggest the easiest and quickest way to do this? The 2 that I've called and cancelled already have made it so much of a pain by keeping me on the phone trying to convince me to not cancel. Would it be better to mail a letter, or can anyone suggest a statement to say to them that will prevent them going into their sales pitch? (I've thought of telling them I died, but I just can't do it)
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Write a letter to each of your card companies. That'll save a lot of time over calling each one and having to listen to their "retention" department try to keep you on board.
But keep in mind that closing a lot of cards with $0 balances suddenly might lower your FICO score; if you're shopping for a mortgage or refinancing anytime soon I'd recommend obtaining the loan before cancelling your cards.
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Indeed writing a letter is the best way. Another point about FICO score is, try to cancel the new accounts instead of the old one, if possible. This reminds me of my own so many accounts which I need to cancel.
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But keep in mind that closing a lot of cards with $0 balances suddenly might lower your FICO score
Does closing a $0 balance card hurt your FICO score if you transfer the avalable credit line to another card? For example, I just recently cancelled a non-reward earning citibank card, but added the credit line from that card to my citi dividend card (the CSR suggested that I do that).
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Does closing a $0 balance card hurt your FICO score if you transfer the avalable credit line to another card? For example, I just recently cancelled a non-reward earning citibank card, but added the credit line from that card to my citi dividend card (the CSR suggested that I do that).
It's a tricky business, trying to figure all that out. Suffice to say that length of credit history, length of time that accounts are open, number of open revolving accounts, debt to available credit ratio and probably a couple more all impact the score. The fact that you closed the account but preserved its available credit helps your debt to credit ratio. But if the closed account was older than the one you transferred the credit to, it may have hurt the aging factor a bit.
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I've tried to cancel accounts by letter (aka snail mail) but it has never worked. Don't know if you guys have been sucessful, but I wanted to cancel and not be harassed and talked into keeping and thought mail would be best. At least a month later I never received notice nor was it ever canceled until I called and just went straight forward and blunt. Usually this has been with some monthly charge recurring account(like credit monitoring) and once a credit card, but from what I read closing a card is a bad idea since it's not the balance on the card that hurts/helps you, but the amount of time it's been open.
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I've tried to cancel accounts by letter (aka snail mail) but it has never worked. Don't know if you guys have been sucessful, but I wanted to cancel and not be harassed and talked into keeping and thought mail would be best. At least a month later I never received notice nor was it ever canceled until I called and just went straight forward and blunt. Usually this has been with some monthly charge recurring account(like credit monitoring) and once a credit card, but from what I read closing a card is a bad idea since it's not the balance on the card that hurts/helps you, but the amount of time it's been open.
I always included cut up cards and requested the confirmation letter.
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I always included cut up cards and requested the confirmation letter.
Only say "pls cancel/close my accounts" no matter what the reps/agents said. It works for me.
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Only say "pls cancel/close my accounts" no matter what the reps/agents said. It works for me.
I, personally, have never had too much of an issue cancelling cards except for my Discover Card. They really are trained to try to retain a cardholder. It took, literally, 15 minutes for me to cancel it and say "No, I don't want a lower interest rate" "No, I don't want that promotion" "No, I'm not interested" "Please just cancel my card!"
My experience with American Express, Citibank, and other retailers have been quite pleasant. They did tried to retain me, but certainly not as annoyingly and aggressively as Discover Card.
By the way, always make sure to tell the CS to notate your account that it was "Closed By the request of the cardholder".
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I haven't done cancels in a while, but I've had mixed results cancelling by mail in the past. Some sent me confirmation letters. Others never seemed to close the accounts at all. Including the card cut up may or may not help. There always used to be something in the terms about cutting the card in half and sending it back, but I haven't looked at that part in any recent terms.
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I haven't done cancels in a while, but I've had mixed results cancelling by mail in the past. Some sent me confirmation letters. Others never seemed to close the accounts at all. Including the card cut up may or may not help. There always used to be something in the terms about cutting the card in half and sending it back, but I haven't looked at that part in any recent terms.
Call AND send followup letter. And not everyone wants to keep every cardholder; my most recent cancellation barely took a breath between me saying "I want to cancel my account" and "Your account is now closed." Phooey on them anyway!
Another thing to consider: if you've got a credit event coming up (buying/leasing a car, mortgage, refi, getting home equity), be careful about doing too many things to your credit. It ALL shows up on your report and can freak out some lenders.
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By the way, always make sure to tell the CS to notate your account that it was "Closed By the request of the cardholder".
Kyle53719, what is the purpose of this?
Also, does anyone know the easiest way to get a credit report? They are supposed to provide them free now, right?
Thanks.
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Kyle53719, what is the purpose of this?
Also, does anyone know the easiest way to get a credit report? They are supposed to provide them free now, right?
Thanks.
While unusual, I have heard rumors of some cardholders cancelling their credit cards and having the "Cancelled by Financial Institution" notation on their credit report. This negatively impacts your credit score as it shows prospective lenders that other financial institutions have closed/terminated their account without your consent, whether it be a violation of the T&C or some other reason. That is why when I decide to cancel a credit line/card, I always tell them to make sure that they are reporting it as "By the request of the consumer".
You can go to www.annualcreditreport.com and get them if your area is eligible.
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I got my first Credit Card in 1998 my first year of college and my first Discover Card in 1999 and continued to add cards for one reason or another usually for free gifts. By 2002 when I graduated I had 9 different Credit Cards and cancelled a few of them as it got out of hand and Capital One & HH generally sucked. Throughout 2003 and 2004 I had upgraded all of my student cards to Regular Cards or Platinum Cards. I now have Chase, Fleet (BoA), Citi, MBNA, AMEX, and Discover. Discover has been continually open since 1999 same account upgraded by Discover. All of the rest have been closed as student accounts and opened as new accounts combining the credit lines except the Fleet which was Opened in 2001. Does this mean my credit history is now relatively short or would it be obvious all I did was "upgrade" my accounts from low limit, high interest student accounts? I have gotten free copies of my credit statements in the past year and needless to say they are long but generally accurate with most banks having the closed account and the new account right next to each other. Every bank shows I have always paid on time, on all three reports so I guess my credit should be pretty good.
Now I am considering ditching the BoA, MBNA, Chase, or Citi, as their 3% FC transaction fees are insane. Any recommendations on the best way to prepare to close the account. I have no problem with the CSR's I just want to know what is the best way to close the account.
Also, when closing an account why would it be bad to have a zero balance? I thought this was the best thing to do so you wouldnt get whacked with fees.
Finally, is it better to have a higher or lower credit limits as most of mine are quite high IMO, near or over $10,000 for someone who makes substantially less than 100K per year. ;)
Thoughts and advice would be appreciated. :cool:
-UFFA
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Also, when closing an account why would it be bad to have a zero balance? I thought this was the best thing to do so you wouldnt get whacked with fees.
I think the only time you can close an account is when you have a zero balance.
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I think the only time you can close an account is when you have a zero balance.
No, u can cancel a card when it still has a balance but they'll raise it to maximum possible interest rate and it won't look very pretty on your credit report, so it's better to pay off the balance first before cancelling the card.
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I, personally, have never had too much of an issue cancelling cards except for my Discover Card. They really are trained to try to retain a cardholder. It took, literally, 15 minutes for me to cancel it and say "No, I don't want a lower interest rate" "No, I don't want that promotion" "No, I'm not interested" "Please just cancel my card!"
My experience with American Express, Citibank, and other retailers have been quite pleasant. They did tried to retain me, but certainly not as annoyingly and aggressively as Discover Card.
By the way, always make sure to tell the CS to notate your account that it was "Closed By the request of the cardholder".
I closed my Discover Card account and they shipped me over to retention, where a bubbly CS rep interrogated me for my reasons. I told her, bluntly, and then she proceeded to argue with me. As I grew increasingly agitated (but always firm and polite), I kept thinking to myself - does the CS think really think she can win this argument, especially when other cards give a larger rebate and are usable in more locations? The account closed.
I was then called every couple of weeks or so with a solicitation to come back. I had had it after the second call, and asked to be placed on the Do Not Call list. The CS rep was very good about it and I told him what I thought of Discover's efforts the last few weeks. I don't blame them for trying, but they ought to know when enough is enough.
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Just called and cancelled my Worldperks Visa today. It took 3 minutes from dial to hang-up. I mentioned to the initial operator that I wanted to close and had him transfer me to retention just to speed up the process. Once retention got on the phone, I said "I know you need to make your pitches, so go ahead and we'll cancel after that." (said it in a friendly way, and he understood my endeavour). Lo and behold, I no longer have to pay that annual fee for <10,000 miles a year.
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One word: speakerphone.
Works great in the background when trying to cancel CC's.
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agree
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I always write a letter, that way I have a copy, send it with the last bill.
I always ask for a return letter stating the card has been closed (in case credit report shows it open).
Never had a problem.
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I always write a letter, that way I have a copy, send it with the last bill.
I always ask for a return letter stating the card has been closed (in case credit report shows it open).
Never had a problem.
I would use that as a last resort. I have had no problems cancelling cards among the major issuers (Chase, MBNA, Discover, Amex, Citi, US Bank). I have checked my credit report and all of them say "Closed By Consumer".
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Yesterday I cancelled our Chase British Airways Visa by sending a request using the email form on their website. I received an email acknowledgement overnight, and verified on the website that the account had been deactivated. The email mentioned that we could contact them if we are interested in a card which would earn different awards, and confirmed that they would report the closing to credit bureaux.
djl
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I have run into a problem lately with cancelations.
1. NW Worldperks. I called to cancel and was told that the card was canceled. After about three months, I noticed that the card was still available online and I called to get it canceled again!
2. Amex Delta. I called twice and was each time told the card was canceled. It did not happen and I followed up with a letter. I received a call from Amex to confirm the cancelation. This time it worked.
I guess anymore this means to 1) call to cancel and 2) follow up with a letter requesting confirmation. I also keep the cards around and follow up a couple of months later to confirm that the card is closed.
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I have run into a problem lately with cancelations.
1. NW Worldperks. I called to cancel and was told that the card was canceled. After about three months, I noticed that the card was still available online and I called to get it canceled again!
2. Amex Delta. I called twice and was each time told the card was canceled. It did not happen and I followed up with a letter. I received a call from Amex to confirm the cancelation. This time it worked.
I guess anymore this means to 1) call to cancel and 2) follow up with a letter requesting confirmation. I also keep the cards around and follow up a couple of months later to confirm that the card is closed.
I use to have both cards, and cancelled over the phone with no problem. It is unfortunate in your instance that it did not work over the phone.
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Friday I cancelled a Citibank AAdvantage Mastercard by using the online email option. I received an email reply to call so they could "assist" me. I sent an email explaining that I did not require any "assistance", pointing out that the card has a zero balance, and that we will be using Citi's own Diners Club Mastercard instead. The account now shows closed on the website.
dennis
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I recently had no problem cancelling a United Visa card over the phone. However, last week I learned to my dismay that the charges which had not yet posted when I cancelled the card will not earn me miles. Since I actually needed those miles for an award booking in the near future, I'm not happy. If I had known that, I would have waited a few weeks to cancel or used a different (mileage-earning) card for the transactions.