Posts Tagged ‘Reason’

If you are fed up with one of your credit cards or simply dont use it, then perhaps is the right time to cancel that card. However, cancelling a card can be tricky, as the company obviously wants you to stay with them. If you follow these simple steps then cancelling a card can be hassle free and will not affect your credit rating:

Pay it off

Obviously, the first thing you need to do before you can cancel a card is to pay off the balance. Although it can be hard to stop spending on the card, it is best to pay off the balance first. This will make it much easier to cancel and you wont incur any penalties when you do so. If you try to cancel the card whilst you still have a balance, the credit card company could put your interest rate up to the maximum whilst you pay the balance off.

Phone the credit company

After you have paid off the balance, the first step in cancelling your card is to notify the credit card company by phone of your desire to cancel. The number for your card issuer is usually located on your statement or the back of your card. When you call to cancel, expect the company to try and convince you otherwise.

Listen to their offer

When you cancel your card, the credit company might well offer you a new deal in order to keep you as a customer. They might offer you a lower interest rate or some other perks such as an upgrade to a platinum card. If the offer is good, then think about whether you should cancel. If you are trying to get rid of cards, then maybe you can get rid of another one. However, if the offer is not forthcoming then cancel your card without hesitation. If you have really set your mind to cancelling that card for whatever reason, then do so.

Write a letter

After you have cancelled your card, you should write to the credit card company and inform them that you want your credit report to show you cancelled the card voluntarily. If your credit report just shows you have had an account closed, other lenders might think the company closed it, and this will harm your credit score.

Check your report

Wait about a month after sending the letter, and then request a copy of your credit report. You want it to show that you cancelled the account. If the report says closed by creditor, then you need to do something about it because this will reflect badly on you. Call the credit card company again to let them know the mistake and follow up with another letter, along with a copy of the original letter. You need to do this because it is your responsibility to make sure your report is correct

When not to cancel

If you are trying to improve your credit score, then it might be a bad idea to close accounts. If you have unused credit this looks better than having used most of your credit. For example, if you have 5,000 used credit and 8,000 total credit, getting rid of one 2,000 card means you are using 5,000 out of 6,000 credit. This looks like you are more in debt than when you have free credit. However, if you know you need to close the account to avoid spending it, then cancelling a card is a good option.

Credit Card Refunds – When and How to Ask for Your Money Back

Im sure most people have dealt at least once with unsatisfactory service. Quality complaints, products not up to standards or not what you wouldve expected. And, in the good American fashion, what did you do? You disputed the charges with the credit card companybank, being almost sure that you wont be charged anything right? Well, it might not have been the best decision. And heres why:

The money back guarantee condition only applies if you are indeed eligible to get the money back. If you just had a change of heart and decided you dont want the product you just bought, chances are you wont see a penny if the company that you bought it from and from where you request the money back now decides to dispute the case.

In this case, itll be almost as if youre going to court with that company: your bank and the company will present their arguments before a chargeback committee which will decide on whose side the truth lies. And if they rule in favor of the company, not only you will not get the money back, but youll also pay a chargeback fee So the entire thing might end up costing you more than expected. So heres my advice:

Dont just go and dispute just about any charges you dont like anymore Some people do this thinking they can get the money back AND keep whatever product they have purchased. You might be in a lot more trouble then youd expect and its just not worth it. First off, when you buy something, especially over the internet, read carefully the Terms & Conditions of the website. I know, it sounds boring and its a lot of legal stuff you dont really want to know, but it could prove important should you not be satisfied with your purchase.

If, for whatever reason, you dont want the productservice anymore, contact the company you got it from. Get in touch via email, phone, regular mail or other means, but talk with them and hear what they have to say. You might get a better deal than just your money back. If the company has a no refund policy written in their T&C, this doesnt mean its written in stone. Exceptions can be made if there is no other way.

Of course, if all else fails, go talk with your bank. They can advise you regarding the next steps you can take to solve the problem. But if you follow the instructions above, you shouldnt get there. Or if you do, you have great chances of getting your money back.