How To Get Rid Of A Credit Card
Most people believe that a credit card is the best remedy for “emergency situations” like when the ATM is down and you need to pay for certain goods or services. However, if you take a long and hard look, you will discover that there are not too many cases where a credit card is absolutely necessary. As a matter of fact a credit card is dangerous. It is what stands between your peace of mind and having to “play with the snakes” especially when you are unable to clear your debt. With that said, it is better to find out how to get rid of a credit card this is what this article is all about.
Most people with credit cards will attest to the fact that they never wanted these cards in the first place. So why do they have them? Well, it all boils down to the ingenuity of credit card companies. Today, these companies knock on your door with offers that are quite difficult to refuse especially when you are broke. In short, it all depends on your financial discipline and your perception towards debt.
It is true that cancelling your credit card can adversely affect your credit score. This is because, the length of your credit history contributes up to 15% of your credit score and if that credit card was your oldest account, cancelling it shortens your credit history and this impacts your credit score.
However, deciding to keep a credit card is much worse. For starters, you will be forced to pay high maintenance fees that you cannot afford and this will end up leaving your credit report with a negative entry for up to seven years.
Secondly, some credit card providers may be scams and you may end up in a money laundering saga or even worse, lose all your money in exchange for a useless plastic card.
Additionally, having a credit card in your pocket increases your temptation to spend thus ruining your financial discipline.
Now that you know the demerits of owning a credit card, here is how to get rid of your credit card.
Start by clearing any balance you may have on your card.
If you are debt free, go ahead and contact your credit card provider either by phone or mail and ask for your card to be cancelled. You do not need to give a reason why you are cancelling the card so this should be easy to execute. However, be prepared to be persuaded to keep the card as credit card companies never want to see a customer leave. Amazing offers may come your way but stay on course.
You also need to ask your credit card provider to give you a written confirmation letter and keep it as proof of account closure.
Additionally, ensure that your credit card company gets to report to the main credit card bureaus that the account was closed on your request as this improves your credit report’s look.