Credit Card Report
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With the skyrocketing fuel and food prices and not to mention weakening dollar, it is not surprising that many Americans are trying to cut back on their spending habits. Some even go to the extent of canceling their credit cards in order to avoid impulse purchases and getting trapped under a mountain of credit card debts.

Deciding to cancel a credit card is a serious matter and you should make sure that this is what you really want. It will seriously affect your credit score if you suddenly apply for several credit cards at the same time.

If you are really considering canceling your credit cards, you should make sure that you complete the process successfully so that your credit score is not harmed. To guide you, here are some useful tips:

1. Notify your credit card company that you are canceling the credit card. Do this by calling the customer support service number printed at the back of your card. You might be swayed by the customer representative by offering your deals and other incentives so you must be really sure that you want to do this. Make sure that you ask the representative’s name so that you can include this in your formal request.
2. Follow up your cancellation with a letter. Your letter or email should clearly state that you are requesting for your credit card account to be cancelled and that you are writing them for the record. This is Important especially if you do not want your credit report to indicate “closed by creditor”. Make sure you receive an acknowledgement receipt so that you know that the credit card company received your request.
3. Check Your Credit Report – after canceling the credit card, you must make sure that your credit report does not show that your creditor was the one who cancelled your account. If there are mistakes, then you should immediately contact your creditor as well as the credit bureau to notify them of such error. Provide the credit bureau with a copy of the acknowledgment receipt.

When canceling your credit card, it is also very important that you have paid the balance in full so there will be no confusion. Do not think, for a second, that after canceling your credit card, you can be relaxed about paying your balance. Any late payments you make will still be reflected in your credit report even if your credit cards were cancelled.

Until your remaining credit card balance is paid off in full, you should check your credit report to look for errors or inaccuracies. You might also be able to determine if you are having identity-theft problems.

Canceling your credit cards may or may not affect your credit score. This is entirely up to you. It is best that you understand the process and make sure that you have followed every instruction perfectly. As a consumer, you must know your responsibilities as well as rights.