I have had a conversation with a couple of our advisors and really come up with more questions than answers on why someone would want to close a credit card – mostly because we can only think of a very limited number of reasons why someone would ever want to close a credit card account. Those being:
- default – in which case the institution would do it for you
- it interferes with you accessing a lower rate or better credit
- death or divorce
One of the big mistakes people make is telling themselves they can’t be trusted with credit so they work hard to pay it off, then close it. This is only reinforcing a poverty mentality and an ‘I can’t trust myself’ sort of attitude which will just create more and more problems.
Closing an account before it’s paid off seems a bit odd. If your account isn’t in default, and your intention is to pay the balance, then you are best to just keep the account open and keep paying for it. It will still appear on your credit bureau, so I’m not sure what the benefit would be to ask for it to be closed while you continue to pay off a balance
Regarding how to check on your accounts, the answer is always the same – to take control of your situation and to check your personal credit bureau. If you want something changed, then it is your responsibility to check it and that is done through the credit bureaus directly. And, if you really do want to close an account, then it has to be done in writing – and each institution will have a different procedure – check with them individually, and follow up.