How To Close A Secured Credit Card
Having a credit card can be an extraordinarily useful thing. It can help pay for bills. It can help pay for things that you’d like to own, the small kind of gifts that you feel would brighten up your day, the day of your family members.
However, there is likely to come a time when you feel that you no longer need your credit card. After all, it is ultimately and should always be treated as a temporary solution.
If you are able to financially support yourself without your credit card, then you are on the way to true financial prosperity.
However, if you no longer need your credit card then you might be wondering what is the process of closing your card’s account and ensuring that all associated debt is no longer your issue?
In particular, if you have a secured credit card account you might be wondering what is the best way to make sure that it is dealt with properly.
Questions like how to close a secured credit card need no longer worry you as this piece will tell you exactly all you need to know about how to sort out your secured credit card problems.
What Is A Secured Credit Card?
First of all, let’s address what a secured credit card is. A secured credit card is a type of credit card that has an attached cash deposit, designed so that if you aren’t able to keep up with repayments of the card, then the credit card provider can take the deposit rather than having to chase you for the owed money.
Many people feel that this is a better system as it allows them greater security and flexibility; it means they are not worrying about the possibility of them not being able to repay the credit on their card as they know if the worst comes to the worst then the credit provider will still get their money.
However, secured credit cards also allow a lower borrowing amount than unsecured credit cards and they have a slightly higher rate of interest.
This can of course put people off but equally the fact you can have two secured credit cards from the same credit provider means that many people are attracted to having a secured credit card.
Whilst a secured credit card might be useful in the short term, you won’t want to keep using it in the long term. So, if you have come to a decision that you don’t need your secured credit card anymore you might be wondering how to close it.
Read on to find out how
How To Close A Secured Credit Card
Now that we’ve explained exactly what a secured credit card is, let’s set out how to close a secured credit card. You can’t uncancel this, which is set out here.
Firstly, it is important that you have paid off all debt incurred on the card. This is important because you won’t be able to close your account until you have ensured that all the money that you have used from the card has been paid off.
If you would like to close your account but haven’t paid off all your credit, then you can always close the account to new charges and just spend time paying off the remaining debt. Once you have done that, you can begin the process of closing the account.
When all your money has been paid off and you want to close the account, start by ringing the credit lender’s customer service number, which you should have from any documentation you received from the provider, and request that you wish to close the account.
It is important that you make clear that it is you that wants the account closed by saying you want it closed at the cardholder’s request. This makes it clear that the owner of the card is the one who wants it closed.
When you ring up the bank’s customer services, it is important that you make sure to keep a record of the call. This is important not just for your own notes but also to ensure you have documentation to prove that you want to close the account in case action isn’t taken to close it.
Make sure to record the date, time and name of the person you were speaking to.
Once you have done that you will unfortunately have to wait a short time before your card is fully cancelled. This is because, for your account to be properly closed, you need to collect your cash deposit.
However, the credit lender will often hang on to the money for between thirty to ninety days to make sure that there aren’t any other overdue credit payments that haven’t been paid meaning that you will have to wait until you then close your account fully.
Once the thirty to ninety days have elapsed, you can go to the bank to collect your cash deposit.
This is important because you don’t want to lose your cash deposit and your account can’t be closed until you have either had the deposit paid back to you digitally or until you have physically collected your deposit.
When you have got your deposit back you can safely cut up your credit card and feel safe in the knowledge that you won’t have anything more to worry about relating to your secured credit card.
Making Sure That You Don’t Need To Rely On Credit Cards
Credit cards can be great. They can have many benefits and really help to improve our lives. However, as this piece has pointed out, you cannot be overly reliant on them.
You have to ensure that you have financial stability and that you aren’t facing too much pressure by constantly having to check your credit status.
Therefore, you must ensure that you too can get away from using a credit card, whether it be secured or unsecured, as soon as possible. It will not only help improve your credit score but also give you greater control over your finances and a kind of financial freedom that you deserve.