Cancel Credit Card Advice Question

Looking for a Credit Card for Christmas Shopping? Before you submit a credit card application, first review the main points which will help you choose the right credit card for your needs.

What Charges You'll Make - If you're going to use the credit card mainly for booking airline reservations and hotels, it might be best for you to get a travel credit card that offers sky miles and hotel points or cashback. If this will be an emergency credit card only, then your main concern may be for a low interest rate credit card with low fees.

When You'll Repay Charges - Will you pay off credit card charges in full every month, or will you carry a balance month to month? If you're going to carry a balance, you want the lowest possible interest rate as well as a low introductory rate. But if you'll payoff balances in full every month, then interest rate really doesn't matter so no annual fee and/or a long grace period would be a bigger concern. If you're going to carry a balance, be concerned about how the finance charge is calculated. The most common method is the Average Daily Balance, which means that the daily balances are added together and then divided by the number of days in the billing cycle. Stay away from credit cards that compute the balance using two billing cycles, as this method costs more money in financing fees.

What Amount You'll Charge - If you're going to use the credit card for all your monthly expenses, then you need a card that has a high credit limit and a high cashback percentage.

More info about Interest Rates, Credit Limits, Incentives, Fees and Penalties

Interest Rates - The interest rate (Annual Percentage Rate) APR can either be a fixed rate or a variable rate that is tied to another financial indicator, most commonly the prime rate. With a fixed rate credit card you know what the interest rate will be every month, whereas a card with a variable rate can fluctuate. Of course, even the interest of a fixed rate card can change based on certain events, such as paying your credit card bill late, exceeding your limit, or simply because the credit card issuer decides to change it after providing you ample advance notice.

Credit Limit - This is the amount of money the credit card company will let you charge to the card. This amount varies depending upon the card offer and your credit history. Be sure to get a credit card with an ample limit, because getting close to your max can hurt your credit score. Just remember that you don't have to max out your limit just because it's available.

Incentives - To compete for and to gain customers, many credit card companies offer rewards. Even if you normally use cash, why not use your credit card and then use the cash to make the payment during the grace period? You still won't pay interest and meanwhile you'll rack-up rewards. A credit card with 5% cashback will earn you $5 for every $100 charged. If your total bills come to $2,000 per month, you'll earn a free $100 every month. Look for a rewards program that you'll use and which offers flexibility, such as cashback or travel.

Fees and Penalties - Compare common charges such as late fees, overlimit fees, balance transfers, cash advances, and for making payments by telephone. Regarding balance transfers, look for credit card offers with no transaction fees and zero percent interest for at least 12 months.

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Cancel Credit Card Advice Question

By Credit Federal | Published 10/15/2009

Burdened with credit card debt, some Americans are canceling their accounts while others are simply cutting them up. While keeping the account open is actually good for your credit score versus closing the account, by leaving the account open you could leave yourself open to fraud, too. But what do you do if you dispose of credit cards before canceling them?

Credit Question: I cut-up and burned my credit cards, but I forgot to close the accounts first. How can I close a credit card account without the credit card number?

Answer: Call the credit card company and ask them for the account number. If you don't remember the name of the credit card company or their phone number and you threw away all credit card statements in addition to the card, their information should be listed on your credit report.

If there's no phone number listed on the credit report, see if you have a friend or family member who has a card from the same company, or search for the company's website using a search engine. Once you find their website, go to their 'Contact' page.

When you find their number, call and tell them you have an account with them but no longer have the credit card or the credit card number. The customer service representative will ask for some identifying information to look up your account. If the rep gives you the credit card number, you can close the account right there on the phone. But chances are; for privacy reasons, the rep won't reveal the credit card number and won't close the account unless you can provide it. So in this situation, simply ask for a new, duplicate card to be sent to you. Once you receive the card, call and close the account.

Finally, you want to follow up in writing. Send a certified letter with return receipt requested to the creditor. In the letter include your name, address, and account number. State that you requested to have your credit card account closed on such-and-such date and that you want your credit record to reflect that the account was closed at your request.

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Cancel Credit Card Advice Question - by <a href=http://creditfederal.com>CreditFederal.com</a> Burdened with credit card debt, some Americans are canceling their accounts while others are simply cutting them up. While keeping the account open is actually good for your credit score versus closing the account, by leaving the account open you could leave yourself open to fraud, too. But what do you do if you dispose of credit cards before canceling them? Credit Question: I cut-up and burned my credit cards, but I forgot to close the accounts first. How can I close a credit card account without the credit card number? Answer: Call the credit card company and ask them for the account number. If you don't remember the name of the credit card company or their phone number and you threw away all credit card statements in addition to the card, their information should be listed on your credit report. If there's no phone number listed on the credit report, see if you have a friend or family member who has a card from the same company, or search for the company's website using a search engine. Once you find their website, go to their 'Contact' page. When you find their number, call and tell them you have an account with them but no longer have the credit card or the credit card number. The customer service representative will ask for some identifying information to look up your account. If the rep gives you the credit card number, you can close the account right there on the phone. But chances are; for privacy reasons, the rep won't reveal the credit card number and won't close the account unless you can provide it. So in this situation, simply ask for a new, duplicate card to be sent to you. Once you receive the card, call and close the account. Finally, you want to follow up in writing. Send a certified letter with return receipt requested to the creditor. In the letter include your name, address, and account number. State that you requested to have your credit card account closed on such-and-such date and that you want your credit record to reflect that the account was closed at your request. This article provided courtesy of <a href=http://creditfederal.com target=_new>www.CreditFederal.com</a>, a personal credit resource of good or bad credit credit cards and loans.

Credit Tip: Need a high limit for Christmas credit card charges? If you have bad credit, consider a personal loan by refinancing your mortgage. Even if you have cash to buy Christmas presents, we recommend using a prepaid card to make purchases because it's safer than carrying cash.