| Credit card accounts that you aren't using are a | | | | closing your account. Don't be surprised if you get |
| temptation that many consumers think could be a big | | | | phone calls from them offering better rates or perks. |
| financial risk. Closing accounts you don't use helps you | | | | Wait a couple of months and request a copy of your |
| avoid temptation. You can also avoid credit fraud or | | | | credit report to see if the account was closed. Be sure |
| annual fees by closing accounts that you no longer | | | | the report states that YOU requested to close the |
| use. However, this must be done the proper way or | | | | account. |
| you could end up having problems. | | | | If the report says the account was closed by your |
| Make Sure It's Closed | | | | creditor, it could negatively affect your credit report. |
| Don't just cut up your cards and throw them away or | | | | Ask the credit card company to fix the report if |
| send them back to your lender. It's important to follow | | | | they've made this mistake. It may sound as just a |
| up to make sure your account is really closed. For | | | | simple fact, but it is one that may lower your credit |
| people planning on obtaining a vehicle or mortgage, | | | | score significantly so do make sure this gets fixed as |
| following up is an important step. If you are counting on | | | | soon as possible. |
| having the account closed but you don't make sure | | | | Think Ahead If You Plan to Apply For a Loan |
| you may risk to apply for a financial product you | | | | If you are closing accounts in preparation for applying |
| shouldn't and getting declined will affect your credit | | | | for amortgage loan, do it at least six months in |
| even more. | | | | advance. Open accounts are considered "potential" |
| The First Steps | | | | credit by lenders, and it could affect your ability to |
| First, call your credit card company's customer-service | | | | qualify. However, a mistake added to your credit |
| number on the back of the credit card. Let the | | | | report could also cost you, so be sure to follow up. |
| customer service people know you are closing the | | | | Closing unused credit cards can bring many benefits to |
| account. Ask for an address and a person or | | | | your financial life; however, you need to do it in such a |
| department to whom you can send a confirmation | | | | way that it won't affect upcoming financial |
| letter regarding your cancellation. Follow up with a short | | | | transactions. As a general rule, do it only if you don't |
| letter confirming the cancellation. | | | | plan to request any financial product for some time |
| It may Take Some Time | | | | and check that the closing of the account is actually |
| Credit card companies will take their sweet time | | | | completed. |