Tuesday, February 7, 2012

Closing Tips and Strategy Credit Card

Closing a credit card could reduce wanted will owe, especially for those who have more than one credit card. Many reasons for people to close a credit card, ranging from never used, was too much debt, or try to reduce the bad habit of shopping.

Some of the tips below, quoted from financial edge can help you in the process of closing a credit card account without the hassle and get a lot of unpleasant surprises later on:

1. Pay off the entire bill

If the bill you still have debt, then credit cards can not be closed. Hence, you should first pay off the bill. You can pay this bill in the usual way, paying with cash. If they are not able to pay off entirely, you can transfer the debt to another credit card, find the lowest interest rates.

But it should be noted that the transfer of bills like this cost, typically about 1-5% of the total bill to be diverted.

2. Read the fine provisions

You should read the rules and regulations in closing a credit card, see if there are some penalties that you pay. If your credit card you are young, there is usually a penalty for closing in a short time.

3. Collect all the bonus

Technically, all the bonuses that you can (such as points, cashback etc.) is still belongs to you, even after the credit card is closed. But it's good if you collect these bonuses before closing the credit card. If the bonus is you can not be taken for a period of time, make selections, whether it's better not have to wait. If the bonus is only worth USD 500,000, but the bill next month with interest at Rp 1 million, better close now.

4. Cancel all automatic payments

Before closing a credit card, make sure all the automatic payments to the card has been closed or transferred. If you can forget the hassle yourself. It could be the automatic payment was broken in the middle of the road so you are considered delinquent.

5. Phone, Ask Close Card, Set Date

Different banks are usually different from the procedure to close a credit card, even the customer service telephone line was also different. Prepare yourself to talk with employees who will persuade you to not close the credit card. Just answer simply, "No thanks, I just want to close a credit card."

Ask the effective date of closing your credit card, make sure any remaining liability should you not arrive at the validity of the card. Do not assume that after the call, the card is not valid.

6. Ask for written confirmation

When finished with the customer service business with the closing of a credit card, you can ask for written confirmation from the bank confirming that your card is not valid anymore. Make sure you keep this letter as well. If suddenly there is a new bill in the next month, you have evidence to show that card is not valid, then the fault is not on yourself.

Conclusion: We suggest you keep asking your credit card statement that you have closed within the next few weeks, especially if you cover more than one card, just to make sure everything is complete without lacking anything. If something is wrong, then it could be addressed without having to wait long.


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