How to cancel credit card?
|Borrowing | Credit Card
Asked by ian2020, submitted
25 May 2010.
Just a quick question.
I am very near to paying off my credit card. When I have made the last payment, I wish to close the credit card account. Is closing my mastercard as simple as phoning my bank and saying I wish to close the account or is there a procedure or anything I need to look out for?
I borrowed money on my credit after I was declined a career development loan. I was blowed if I was going to let the banks decide my education / future career (and in anycase, the interest rate was not too dissimilar).
Answered by Justin on 26 May 2010
Well done on paying off your card!
Yes, it is as simple as calling the credit card provider, although you might want to tell them in writing too just to make sure as it’s not unknown for call centres to make mistakes. Nevertheless, bear in mind that the credit card company will probably leave the account in place for a while longer in case any outstanding payments come through, so it’s a good idea to call again after three months and ensure that the account is fully closed.
However, before you cancel, consider whether you’ll find it useful to have a credit card in case of financial emergency. If so then keeping, but not using, this card could make sense if you don’t want the hassle of applying for another in future or require money at very short notice.
Good luck with your new career.
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Comment by webwiz at 6:23pm on 29 May 2010:
Good advice from Justin as always. I would just add a comment that rather than keep your current card, which you chose to fund your career development, you apply for a different one to keep as Justin says for a rainy day. For example some cards charge an inactivity fee, some give a rebate. I use a card which rebates 2% of purchases mainly to get the rebate, and because it is often more convenient than cash or cheque and usually essential for on line purchases. I always pay in full and never use any credit after the free period. Having a card requires a degree of self control but you seem to have demonstrated that.