- 1). Total up how much credit you are using in your revolving accounts. Tally how much available credit you have with those accounts. Divide the credit you're using by the credit you have available to get your debt utilization ratio. If your ratio is below 30 percent, this usually helps your credit. As your ratio rises, your credit score takes a harder hit. By the time you get to 80 percent utilization, your score can drop by as much as 60 to 100 points, says Creditmattersinc.com. If closing the credit card significantly raises your ratio, you might want to wait until you have some other new lines of credit available to close the account you don't want.
- 2). Look at the total amount you owe on the card and the minimum payment the company requires you to make. Go over your budget and see how much money you can throw at the credit card balance. As reported by Lucy Lazarony of Bankrate.com, credit card companies sometimes hike up your interest rate to the maximum permitted by your contract if you close an account on which you still owe. Even if your company keeps your interest rate the same, paying off the card quickly saves you interest because the balance against which interest is calculated goes down faster. Pay the card off in full.
- 3). Look up the customer service number for the credit card company. This usually is on your credit card statement, as well as the company's website.
- 4). Call the customer service number and ask to speak with a representative who has the authority to close accounts -- some representatives only handle inquiries or basic requests like account password resets.
- 5). Ask the company representative to confirm that the balance on your card actually is zero. Even though your records may show that you have paid everything you owe, credit card companies sometimes make processing errors particularly because of the high degree of automation in records and billing systems.
- 6). Request that the representative close your account once you know you don't owe anything on the card. The representative likely will try to convince you to keep the account open, but stick to your guns and be insistent. If the representative becomes argumentative, ask to talk to his direct supervisor and repeat your request to the supervisor. Ask that the account be noted as "closed per customer's request" so that others don't have a reason to think the card company closed the account on you.
- 7). Get the name of someone you can use to write to about your card cancellation from the representative. Ask for the address to which you should direct the correspondence.
- 8). Write a brief letter detailing your original account closure request. Include your account number, name and other information, such as the name of the representative with whom you talked. Ask that the credit card company send you written conformation that it has closed your card account. Credit card companies usually send you confirmation anyway, but it never hurts to be thorough.
- 9). Check your credit report for evidence the credit card company closed your account properly. If you continue to get correspondence about your account after one billing cycle, there may be a problem that necessitates you contact customer service again.
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