How to Close a Secured Credit Card

Step-by-Step Guide

1. 1

   Step 1: Call your lender.

   Look for the customer service number on the back of your credit card and call to cancel your account.
   
   Tell the bank that you would like to close your secured credit card "at the cardholder's request," and give the date you want the cancellation to be effective.If you have an outstanding amount on the card, you should make full payment over the phone, or make an online or mail payment before the cancellation effective date.
   
   If you can't pay off your balance in full, you can still have your account closed to new charges, so that you can't add any charges to your existing balance.Once you have paid the balance down you can close your account completely.
   
   Keep a written record of your phone call including the date, time of day, and the person to whom you spoke as well as any agreement reached.
   
   While canceling your card will prevent you from making future purchases, it won't change the amount you owe the lender.
   
   You are responsible to pay any charges you made on the card before your cancellation, whether or not those amounts are posted on the day you cancel.
   
   If you prefer not to call your lender, you can also send a certified letter to the credit card company stating that you wish to cancel your card.
   
   List your account number, the date you want your cancellation to be effective, and sign and date the letter.
   
   You should receive a confirmation from the lender that your account has been cancelled at your request.Your lender will probably not want to lose your business, so you should expect them to try and convince you to stay.
   
   You can avoid this by making clear on the phone call that you are not interested in holding the card any longer, and giving the specific date you want to close the card.
   
   If the representative doesn't respect your wishes, don't hesitate to thank them for their help and say firmly "I am calling to cancel my card, I am not willing to negotiate."
2. 2

   Step 2: Collect your deposit.

   The lender has a deposit on your secured credit card, and owes that amount back to you once the account is closed.
   
   However, the bank will probably hold onto that money for 30 – 90 days after the effective date of your closing, just to make sure there aren't any stray charges that haven't cleared your account yet.
   
   When you call your lender to cancel your card, ask how long they will hold the deposit and what method they will use to pay you back.
   
   Make sure the bank has your most up to date address, so if they send your deposit by mail you will receive it right away.
   
   If the date you expected your deposit back passes and you have not yet received it, call your lender again and ask about the status of your deposit.
   
   Reference the conversation you had at cancellation and the date the bank promised to pay you back.
   
   Ask what method they will use to refund your deposit and when you should expect it. , Once you receive your deposit refund, or a cancellation confirmation, you will know that your account is permanently closed.
   
   You should cut up your card and discard it permanently so you don't accidentally try to use it, and so that someone else doesn't try to use the card or pretend to be you.
   
   Don't forget to update any automatic payments you have set up from your cancelled credit card.
3. 3

   Step 3: Cut up your card.

Detailed Guide

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