How To Cancel Credit Card, Step by Step: General: BraveHeart Women

How To Cancel Credit Card, Step by Step Posted Jun 10, 2009 10:14 AM
1 Attachment Worksheet - How to Cancel a Credit... (10.0 K) Canceling credit cards is one strategy many people are using these days as a way to manage their personal and business financial situations and stretch their cash resources. I discovered good information on how to cancel your credit card to share with you. How you cancel a credit card is important to retain your credit rating and FICO scores. See the attached pdf file on step by step process to cancel a credit card. Feel free to share this information with your friends and family. The credit card information is not intended to be comprehensive. I recommend that you do further study to get all your questions answered and to seek updated information in the future because policies and procedures change. For your convenience, I have more info on several relevant credit card topics. -- Changes to Your Credit Cards -- How to React to Interest Rate Hikes on Credit Cards -- 10 Things Credit Card Issuers Don’t Reveal If you would like this additional information, contact me by email on my BraveHeartWomen website or at bfilla@gmail.com. Barbara Filla http://www.braveheartwomen.com/forum/Passion-Branding/Welcome-Page/1000530
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3 Comments

Computers sure can be flaky.

I'm a professional software developer, so I spend my days dealing with exactly that issue!

I was able to get to that site this time... and interestingly, it didn't suggest closing accounts, in fact, it said the same thing Suze Orman does:
"As for those people who are closing accounts in protest of the changes, Cunningham cautions against acting in haste. "They may win the battle, but they will lose the war," she says. Closing credit card accounts can lower consumers' credit scores, especially for older accounts that demonstrate lengthy credit histories.

"Only consider closing if they raise the APR or minimum payment beyond what you can afford to pay," she advises.

Of course, everyone has to do what is right for herself, in her own situation. If closing accounts is the best way to manage your money, you've given us great advice on how to do that with the least possible damage.

Hi Lauren (LaughSing),

Thanks for your comments. The credit card industry has no standards that apply consistently across the board, which is a problem.

However, many people are closing accounts to manage their money better, so using steps that give them a better chance of having less potential to adjust their credit score is important.

I just tried the link in the worksheet and it took me to the proper page. The computer is like that – on and off at times. Possi bly deleting your 'temporary files' on your computer may allow you to open the file.

RE: FICO score reduction when close credit cards. When a lender closes your account, it can be interpreted that you are a greater risk. However if YOU request the account to be closed, which is how the process in the worksheet recommends, then there may be no or lesser change to your FICO score.

Each credit score company may calculate the scores differently.

I always welcome comments and questions.

Barbara Filla

That is an interesting worksheet.

I'm not a financial wizard, but I am a great fan of Suze Orman, and her advice is to indeed pay off your credit cards, but to leave them open, since the calculation of FICO scores includes a comparison of your available credit to your debt. As she explains it, that means that even if you have no other debt at all, reducing your available credit reduces your FICO score, no matter why the card was closed. It's likely true that the method in your worksheet would cause a smaller reduction, but as I understand it, it would still take a hit.

I tried to check the link in the worksheet to get more information, but when I tried it, it said that page is no longer available on MSN Money.

I did find this article there, though: http://articles.moneycentral.msn.com/Banking/YourCreditRating/4creditScoringMyths.aspx

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How To Cancel Credit Card, Step by Step

How To Cancel Credit Card, Step by Step

How To Cancel Credit Card, Step by Step