closing accounts

Closing an account is not considered derogatory at all. People do it all of the time for legitimate reasons, such as in preparation for applying for a mortgage or they have become disatisfied with the terms of the account or the customer service provided.

I would suggest making sure the account have a zero balance first. In addition, make sure you have no 'automatic' payments being charged to that card. Then take the card, cut it in pieces and mail it to the creditor at the address on the back of the statement for billing dispute or a separate address if one is provided for account closure, along with a letter requesting closure of the account. You may wish to send it certified mail, but this is probably not necessary with most reputable creditors.

In your letter, request that they provide you with a confirmation letter than the account is closed and request that the account closure be reported to the CRAs as "Account Closed by Consumer."

You can call to cancel the card, but you will get transferred to a retention specialist who will try to sell you on keeping the account open. If this seems easier, go ahead and do it, but specifically request a letter from the creditor stating that the account has been closed. If you close the account by mail, expect to get a phone call trying to get you to reopen the account if you've had a good track record with the creditor. In addition you will probably get offers in the mail to reopen the account.

 

Better they are closed by you, than the provider. Too many cards is a flag when applying for credit..