You shouldn't send your letter to the same address where you submit your payments for your credit card. Most credit card companies have a distinct postal address just for contact. Verify that the address shown on a current copy of your credit card statement is the one you are using. You will also be able to get the right address from your online statement or by contacting the customer support number shown on the back of your credit card, which is the number provided by your card issuer. Before you send your letter out, check to be sure that you have the right address written down.
Payments, Fees, and Interest After Account is Closed
If you still owe money after terminating the account, you will keep getting billing statements even after the account has been closed. Even if your account is closed, you are still expected to make at least the monthly minimum payment until the debt is paid off. However, you won't be able to use the credit card to make purchases since the account has been closed. Your balance will still be subject to accruing interest, as well as any fees that may be applicable.
Increasing the amount you pay down each month will allow you to pay off the total in a shorter time. If you have any regular invoices being charged to this credit card, you need to make sure that you modify the billing information for those accounts so that the charges are not refused (and your services are canceled).
Sample Letter for Closing Credit Card
Here is an example of how to word the closing statement for your credit card account in a letter. You do not need to provide a reason for closing your account in the letter; rather, you need only mention that you want your account to be canceled for processing.
Ensure that your personal and account information is replaced with the information in bold below. You are free to personalize your letter; nevertheless, the credit card issuer must know your name, billing address, and account number to identify your account. If the letter you are writing is a follow-up to a phone conversation, be sure to include the date, time, and name of the agent you talked with on the phone.
You will be provided a tracking number if you send your letter using certified mail. You may check when the credit card issuer gets your letter by entering this tracking number on USPS.com and seeing the delivery status. You are not required to send your letter by certified mail to shut your account; taking this additional step provides additional protection for yourself.
After some time, you should contact the credit card issuer to verify that your account has been canceled. After roughly a month, you can check your credit reports to ensure that the account is appropriately updated to reflect that it was closed at your request and that the information is correct.
How Big Of A Hit Does It Take On Your Credit Score If You Close A Credit Card Account?
Closing an account's specific effect on your credit score will be determined by how many other accounts you have open simultaneously. The most important and immediate effect closing a credit card will have on your credit usage ratio is the loss of that card's available credit. When you cancel a credit card, the associated line of credit will no longer be a part of your overall credit record.
Your credit score will take a hit if you have any outstanding debt from other accounts since this will increase a larger percentage of your total available credit. Closing an account will affect your average credit age, but you won't see that effect until the account is removed from your credit report, which can take up to ten years. You won't know how it affected your average credit age.
How Do You Deactivate A Debit Card?
On the other hand, debit cards are normally connected to a checking account, as opposed to credit cards, which are linked to a line of credit. You can get rid of a debit card by ripping it up, but if you want to "cancel" an account associated with a debit card, the bank will most likely need you to end your checking account first.
