Best approach to closing a CC

[DomaneRider]

Freinds,

   My average credit score between the 3 bureaus is 630.  I recently negoitated a PFD for 3 collections accounts.   2 With Portfolio Re00covery Associates and the 3rd with AR Resources.  AR Resources has already deleted from my credit file and I just payed them on March 4th.  I'm waiting for Portfolio Recovery to delete, then I plan to close out several crappy cards that I have.  

These cards are 

Indigo $300 CL

Aspire $500 CL

1st Premier $500 CL

Credit 1 $500 CL

Fortiva $500 CL

I also have another Fortiva with an $800 CL and Credit 1 with an $800 CL.  I'm not married to either card, so I could close them as well if it's better for me in the long run.  I only plan on keeping them because of the higher CLs albeit it really isnt that much higher than the ones I plan to get rid of.  

I will be keeping Merrick Bank $2800 CL, because I've had them for 12 years and Blaze MC $750 CL.  

My question is: what is the best way to contact the vendor to close out the cards.  Will a phone call suffice, or should I put it in writing to each vendor?  Also, if I do write the vendors, should I also CC each credit bureau to ensure proper reporting?  

Any all advice will be appreciated. 

Thank You

[Ficoproblems247]

A simple phone call to the number on the back of each card will do fine. Some lenders will allow for account closure via IVR even. No need to inform the bureaus of anything as each lender is required to do so. Make sure everything is closed with a 0 balance, and watch your next statement closely for any trailing interest or other fees. I would continue to log in to those accounts as long as you have access to them just to ensure no lingering charges or AF/monthly maintenance fees have been added at the end. 

[blindambition]

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@Ficoproblems247 wrote:

A simple phone call to the number on the back of each card will do fine. Some lenders will allow for account closure via IVR even. No need to inform the bureaus of anything as each lender is required to do so. Make sure everything is closed with a 0 balance, and watch your next statement closely for any trailing interest or other fees. I would continue to log in to those accounts as long as you have access to them just to ensure no lingering charges or AF/monthly maintenance fees have been added at the end. 

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+100

I agree with this. I would close AF cards first, but stagger closure of no AF cards.

The reasoning for staggering closures over time is because it is a flag to some lenders. Amex for example. They might deny for too many closures. While you have legitimate reasoning, that behavior may flag a possible SUB chaser, or what's known as churning.

[DomaneRider]

 blindambition

 

Community Leader
Senior Contributor

‎03-25-2021 08:01 PM

Re: Best approach to closing a CC

@Ficoproblems247 wrote:

A simple phone call to the number on the back of each card will do fine. Some lenders will allow for account closure via IVR even. No need to inform the bureaus of anything as each lender is required to do so. Make sure everything is closed with a 0 balance, and watch your next statement closely for any trailing interest or other fees. I would continue to log in to those accounts as long as you have access to them just to ensure no lingering charges or AF/monthly maintenance fees have been added at the end. 

+100

I agree with this. I would close AF cards first, but stagger closure of no AF cards.

The reasoning for staggering closures over time is because it is a flag to some lenders. Amex for example. They might deny for too many closures. While you have legitimate reasoning, that behavior may flag a possible SUB chaser, or what's known as churning.

Thank you both for your feedback.  

BlindAmbition:
Would you suggest closing 1 a month?  I'm under no time constraints to close them quickly.  I can take my time and close them casually if that seems to be the best approach.  

Thanks again

[DomaneRider]

@Ficoproblems247 wrote:

A simple phone call to the number on the back of each card will do fine. Some lenders will allow for account closure via IVR even. No need to inform the bureaus of anything as each lender is required to do so. Make sure everything is closed with a 0 balance, and watch your next statement closely for any trailing interest or other fees. I would continue to log in to those accounts as long as you have access to them just to ensure no lingering charges or AF/monthly maintenance fees have been added at the end. 

+100

I agree with this. I would close AF cards first, but stagger closure of no AF cards.

The reasoning for staggering closures over time is because it is a flag to some lenders. Amex for example. They might deny for too many closures. While you have legitimate reasoning, that behavior may flag a possible SUB chaser, or what's known as churning.

Thank you both for your feedback.  

BlindAmbition:
Would you suggest closing 1 a month?  I'm under no time constraints to close them quickly.  I can take my time and close them casually if that seems to be the best approach.  

Thanks again

[blindambition]

I would do casually every few months. The accounts will still report for up to 10 years. Helping your age, but closing lessens your total limits. Make sure that loss won't hurt your overall aggregate utilization.

[DomaneRider]

Gotcha.

Thanks.  I'll plan to close 1 every 3 months or so.  I would consider that pace pretty gradual.  Thank you for your input.  Now it's just waiting for the PFD to happen. 

Thanks again 

[pinkandgrey]

With every card I've closed, I have just called the lender and asked to have the card closed. I do always ask to make sure that the account will reflect "closed by consumer."  I've never had a problem doing it that way. 

Good luck!