3 Tips to Close a Credit Card

Credit cards can cause a lot of worry especially when it comes to one’s finances, thanks to the effect that it has on their credit score and their bank balance as the interest rates are very high. If you want to avoid extra fees or any other rude surprises due to credit cards, here are 3 tips that can help you close them before they cause any further damage:

#1: Clear the Balance

Without clearing the balance on a credit card, you won’t be able to close it. So the first step is to either pay off the balance or transfer it to another credit card with a lower interest rate. What you have to remember is that carrying out these balance transfers also cost a fee of about 1 % to 5 %.

 It’s also very important to read the credit card agreement that you received in regards to closing procedures as there will be fees involved there as well.

#2: Ask for a confirmation letter

As soon as you clear your balance on your card, make sure that you get a confirmation letter in writing stating very clearly that you’ve completed all requirements that are necessary to close the card. If this card continues to show up on your credit statement, you will have writing in proof that proves otherwise.

#3: Stop Automatic Payments

Some people might schedule automatic payments from their bank account to their credit card. You should ensure that you cancel this transaction from occurring before you close your account or else payments will be made despite the fact that there is a zero balance on that credit card. It will be an additional headache to get back that money.