- Reasons for Closing
- How to Close Your Card
- What Happens When You Close Your Card
If you’re looking to close your Chase credit card, there are a few things you need to know. We’ll walk you through the process step by step so you can make sure everything is done correctly.
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Reasons for Closing
There are many reasons you might want to close your Chase credit card account. Maybe you’re trying to save money, or you’re fed up with high interest rates. Maybe you’re concerned about your credit score. Whatever your reason, there are a few things you should know before you close your account.
You have too many cards
If you have more than five cards, it may be time to close some accounts. That’s because lenders like to see a diversified mix of different types of credit accounts on your credit report.
You’re trying to improve your credit score
If you’re trying to improve your credit score, closing a credit card may not be the best move. That’s because credit scores take into account both the total amount of debt you have and the amount of available credit you’re using. So, when you close a credit card, you’re effectively reducing your available credit and that can send your credit utilization ratio soaring.
In general, it’s best to keep your credit utilization ratio below 30%. So, if you have a $1,000 limit on a card and you’re carrying a balance of $300, your credit utilization ratio is 30%. But if you close that card and don’t open another one, your credit utilization ratio on the remaining cards will jump to 40% ($300 divided by $750). And that could hurt your score.
You’re trying to save money
If you’re trying to save money, it might make sense to close your Chase credit card. This is especially true if you’re carrying a balance on your card. By closing your credit card, you’ll no longer have the temptation to spend money you don’t have. You’ll also save on interest charges.
Another reason to close your Chase credit card is if you’re not using it. If you don’t use your card, you’re not earning rewards points or cash back. You’re also not building your credit history. If you don’t plan on using your card in the near future, it might make sense to close it.
Finally, you might want to close your Chase credit card if you’re unhappy with the customer service. If you’ve had a bad experience with customer service, it might be best to close your account and find another credit card issuer.
How to Close Your Card
If you’re interested in closing your Chase credit card, you can do so by following these steps. First, you’ll need to call customer service at 1-800-935-9935. Once you’re on the phone with a customer service representative, explain that you’d like to close your credit card account. The representative will then ask you for some basic information, such as your name, address, and account number. They may also ask you to verify your identity by providing your Social Security number. Once your identity has been verified, the representative will be able to close your account.
Call customer service
If you decide you no longer want your Chase credit card, you have a few options for how to close your account. One option is to call Chase customer service at 1-800-432-3117 and tell the representative that you’d like to cancel your card.
You’ll need to provide your name, account number and other personal information to verify your identity. Once the representative has verified your identity, they will close your account. You may also be asked why you’re closing your account and if there’s anything Chase can do to keep you as a customer.
Follow the automated prompts
If you need to close your card, you can do so by following the automated prompts when you call customer service. You will need to provide your account number and some other identifying information. Once you have went through the automated prompts, a customer service representative will be able to help you close your account.
Speak to a customer service representative
The best way to close your Chase credit card is to call customer service at 1-800-432-3117 and speak to a representative. You’ll need to provide your account number, name, and security code from your card. The representative will then close your account and mail you a confirmation letter.
What Happens When You Close Your Card
Your credit score may drop
Closing a credit card can negatively affect your credit score in two ways. First, it will lower your credit utilization ratio, which is the percentage of your credit limit that you’re using. A lower credit utilization ratio is generally better for your score.
Second, closing a card will shorten your average credit history, which is also bad for your score. That’s because one of the things lenders look at when considering you for a loan is how long you’ve been borrowing money. A longer history usually indicates to lenders that you’re a responsible borrower.
You may lose your rewards
Depending on your issuer, you may lose your rewards when you close your credit card. For example, Chase requires you to redeem your points within 90 days of closing your account. Citi gives you only 60 days. With American Express, you have 30 days.
And it’s not just points and miles that disappearing — any cash back or other rewards you’ve earned will be forfeited as well. So if you have a significant balance of rewards, it may make sense to redeem them before closing the card.
You may have to pay a fee
If you close your Chase credit card, you may have to pay a fee. The fee could be either a monthly maintenance fee or an annual fee. If you close your account within the first year, you may also be charged a one-time closing fee.