Planning on Cutting Up That Credit Card?
by Tim Manni
During my morning scan of Twitter, I came across a tweet from personal finance gurus Ken and Daria Dolan:
Cutting up your credit cards? Great! But don’t forget to close the account. Our sample letter makes it easy.
The recession spawned a national trend which saw thousands, if not millions, of American shift from spenders to savers. High charges and fees imposed by credit card companies made the transition all that much easier. But before you pull out the scissors and kiss that plastic goodbye, remember that merely cutting up your card doesn’t mean your account is closed.
Sending a credit-card cancellation letter will ensure that your account is properly closed, and the proper authorities are notified.
The Dolans have provided an easy-to-use template to follow when writing to the credit card company:
[Your name]
[Your address]
[Date]Dear Sir or Madam:
Please let this letter serve as notice that I am terminating my credit card account effective immediately. Please close the following account:
Credit Card Company: ____________
Account Number: ________________Please send me written confirmation that my account has been closed. Also, please confirm that you have notified all appropriate credit card bureaus that this account was closed at my request.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Signature]
READERS: How many credit cards have you canceled recently?
What if I don’t want to cut up my cards — I’ve heard that closing accounts may lower my credit score? If so, GetRichSlowly.org will tell you the impact closing credit card accounts can have on your FICO score.
**You may want to purchase a return receipt at your local post office to ensure that the credit card company has received your letter.**
