Sometimes credit card companies won't let go
By Jeff Brown
Knight Ridder News Service
Q. I have been struggling to get rid of a credit card I don't need. I have e-mailed, written letters and phoned, but I keep getting statements showing I still have an account. What is the correct way to cancel a credit card?
A. You'd think the card company would be happy to cancel an inactive account. After all, the company is not making any money on it, and it costs something to compile and mail those statements.
Why is it sometimes so hard to get rid of a card? There could be any number of reasons. Maybe they hope you'll relent and start using the card again. Perhaps the card company needs to keep its roster of account holders to a certain level to make its bankers and investors happy. Or maybe the company is just sloppy. Who knows?
But you're right to want to get your name off the books. Lots of people think it's good enough to just cut up a card and forget about it. It's not.
For one thing, every account you have increases your risk of identity theft or other fraud, and that risk only gets greater if you stop paying attention to the account.
Also, every card you have shows up on your credit reports. Even if your balance is zero, the fact that you have this credit available and could use it makes you look a little bit riskier to other lenders.
Keep in mind, though, that it is important to have a credit history that shows you're a responsible borrower.
You should be able to get rid of a credit card with just a phone call to the toll-free customer service number on the back of the card. Sometimes, canceling an account is an option you can choose with a touch-tone phone.
But in many cases, says Steve Rhode, president of the nonprofit credit-counseling service Myvesta, customers will be connected with someone who will try to talk them out of canceling. It could pay to hear the pitch out, as the representative may sweeten the deal with a lower interest rate or perk.
To be really sure about your cancellation, send the card company a certified letter with a return receipt, Rhode said. But it's probably not necessary to do this unless you're having trouble getting the card cancelled. That's rarely a tough battle, he said.
In canceling, ask that the three credit reporting bureaus be notified. Then, about a month after, check with the bureaus to make sure their records are up to date, he says.
For $34.95, MyVesta will provide credit reports from all three bureaus, www.myvesta.org or call (800) 698-3782.
Each bureau sells reports, and federal law requires they be provided free to people who have been turned down for credit, employment or housing in the previous 60 days. The bureaus are: Experian, www.experian.com, (866) 200-6020; Equifax, www.equifax.com, (800) 685-1111; TransUnion, www.transunion.com, (800) 888-4213.
