Credit cards. Financial business background.

When Breaking Up (with a Credit Card) is Hard to Do

Reaching into my virtual mailbag for today’s post, I found a number of questions on the same general subject—credit cards—how to manage them and even how to close a credit card account.

Credit cards. Financial business background.

Boy, does this flood my mind with memories of not dealing well with credit myself. As you may know, my trip into the pit of credit card despair and the long but glorious journey out—all the way to debt-free!—not only changed the course of my life, I’ve had the joy of leading thousands of others out of that debilitating lifestyle as well. For that, I will be eternally grateful.

Slammed by a rate increase

Dear Mary: We have only one credit card with a balance of $18,000. The bank just gave us 45-days notice that our rate is going from 9.9% to 22.9%. I called to find out why and learned the bank pulled our credit reports that showed too much credit with balances that are too high. We have no late payments and decent credit scores. They will do nothing unless I can prove the credit report they pulled months ago had incorrect information on it. It was correct at the time. Is there anything we do? Donna

Dear Donna: The problem is you gave them permission to monitor your credit reports and to increase your rate accordingly when you signed that initial application (it was buried in the fine print).

You must assume that the bank or issuer is monitoring your account and personal information on a regular basis. And this time they spotted a significant change in your utilization rate* and saw their window of opportunity to raise your rate.

What you may not be aware of is that under The Credit Card Act of 2009, the new rate applies only to new purchases—starting the minute that new rate goes into effect. 

Because your rate went up based on negative findings in your credit history, your issuer is required by law to review your account in six months for signs of improvement. If your utilization rate improves, the issuer must consider reducing your rate.

It’s not easy to win the credit card game, but it is possible. The sure way to beat them at their own game is to 1) know the law 2) keep your eyes on the fine print and 3) your balance owing at $0.

*utilization rate is a way of measuring how close you are to being maxed out on the account.

750 FICO score is nothing to sneeze at

Dear Mary:  My FICO credit score is 750. The report I received says my score would be higher if I didn’t have so many open lines of credit—inactive credit card accounts I don’t use anymore.

I have heard that you should not cancel credit cards because it will hurt your score. In this case, would it be advisable for me to cancel these small credit cards anyway in order to improve my socre? Trent

Dear Trent: Crazy, isn’t it? If you have too much open credit, that’s a negative. If you close too many accounts at the same time, that can be a negative because you’ve screwed up that delicate ratio of debt-to-available-credit or utilization rate. I can only imagine that you have so much available credit, you’ve tipped the scales in a way that is keeping your score down.

But look, a score of 750 is very good. If I were you, and unless you’re getting ready to apply for a new mortgage loan, I would be satisfied and do nothing. If you decide to work at raising your score, close those extraneous accounts slowly—something like one or two every six months, or so.

Playing with a full deck

Dear Mary: I just got my credit report and see I have many open accounts I haven’t used in years. How do I go about getting those puppies off?

Also, I have several accounts that I stupidly opened just to get an extra 15 to 20 percent off on that day’s purchase. Is there any risk to me closing all of these accounts, too? If I was carrying everything they show on my report, I’d have a full deck of 52 cards. Samantha

Dear Samantha: Wow, 52 credit cards? You’ve got me beat, my friend and that’s a record I relinquish, gladly. At my personal breaking point many years ago, I was carrying 35 credit cards—every one of them maxed out and overdue.

Seriously, this is not a good thing. You don’t mention your credit score, which leads me to believe you don’t know what it is. I’m guessing that your score has suffered from this heavy load of mindless credit gathering. You can use this free FICO Score Estimator to get a rough idea.

The money you saved on “today’s purchase” by signing up for all of those cards surely pales by what having a damaged credit score has cost you in higher insurance premiums and higher rates of interest on your mortgage and auto loans over the years. Closing these accounts cannot immediately undo the damage that has been done. In fact, doing that without a clear strategy could make things even worse.

Experts tell us you should close no more than three accounts per year, which in your case would take 17 years. However, carrying that 52-card deck is not a good idea, either. The great credit crunch that began in 2008 as the U.S. tumbled into recession may help solve the problem for you.

Right off the bat, it’s likely that many in your deck are for stores that have gone out of business. Mervyn’s, Circuit City, and Linens n’ Things come to mind.

Another consideration is that these days, some credit grantors are closing and canceling inactive, deadbeat, and dormant accounts. That may take care of a few more.

As for the rest, identify one or two of the bank cards (MasterCard or Visa) you’ve had the longest as the credit cards you will keep active, and close the rest at a rate of about one every 4 months or so.

As painful as it will be, I suggest you get your credit score now so you know where you are. While is going to charge you a few bucks. Or check your credit scores anytime, anywhere, and never pay for them at You will need to create a simple, password-protected account. No credit card required.

Alternatively, some credit card issuers make credit scores available as a perk of carrying their card, so you might want to check that out.

Once you have these, watch your score and your credit report like a hawk. With so much open credit you are very vulnerable to identity theft.

You should think seriously about getting identity theft protection through a company like Lifelock. That’s the company I and my family use. I highly recommend Lifelock.

Breaking up is hard to do

Dear Mary: I want to start closing inactive and otherwise useless credit card accounts that show up on my credit report. But exactly how should I do that? That might seem like a dumb question, but I really don’t know what to do. Thanks. Cecily

Dear Cecily: Closing a credit card account is not for the faint of heart. If you suffer from failure-to-follow-through syndrome, there’s not much point in even getting started on this one. If, on the other hand, you have a penchant for organization, list-making and, follow-up, you’re going to love this.

But first, the facts. Banks, credit card companies, and retail credit granters are very keen on retaining their quality, revolving or “open-end” credit accounts, (from the Latin root meaning there’s no end to the amount of money we intend to squeeze from you during your lifetime).

These companies paid dearly to bait, snag, and then reel you in. Since that time you’ve rewarded them handsomely. When they learn you’re breaking up with them they are not going to be happy.

Note: It is not advisable to close an account until you have achieved a $0 balance. To do otherwise invites an interest rate increase to the maximum allowed by law.

Make the call

Find the toll-free number for customer service (it’s on the back of the credit card itself, on the last statement, or possibly on your credit report). Tell the customer service rep to close your account. You’ll get an argument of course, but stick to your guns: Close my account and report it closed to the credit reporting agencies (CRAs). If you are then handed off to someone in Customer Retention, repeat: Close my account and report it closed to CRAs. Please.

Once you are successful, record the full name of this person and the date you made this request.

Send the letter

Immediately follow-up with a letter that says the same thing, including the name of the customer service rep you spoke with and the date of that call. Make sure you give your account number, name as it appears on the account and your phone number. If you still have it, cut the credit card into pieces and enclose them with the letter.

Send this letter by U.S. Certified Mail with Delivery and Signature Confirmation. This is going to cost you a few bucks in addition to the regular postage, which as we know increases about every five minutes or so.


About two weeks after that letter is delivered, call the credit card’s customer service again to confirm your account is closed. Assume it won’t be (they’re fighting you here, remember?). Repeat your verbal instructions: Close this account and report it closed to the CRAs.


In about three months order a copy of your credit report. If the account shows the account “Closed by request of customer” or a reasonable facsimile, you’ve achieved success. If not, go back, start over. Make the call and go through all the steps again.

Repeat as necessary

You could get full cooperation on your first call. Or it could take several rounds to achieve a full and complete break up with this credit card account.

Lesson learned

It’s a lot easier to open than to close a credit card account. Even if you have all the current information like your account number, customer service phone number, and address, it could cost you both in time, trouble and postage. If you don’t have all of that information at your fingertips, your work will only multiply as you’ll need to move into research mode.

Think about this the next time you’re tempted to complete a new credit card application.



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13 replies
  1. Ann says:

    I having been working very hard to pay off my credit cards and when they have a “zero” balance, not use them any longer. So one by one, the cards have been paid off.
    Now the credit cards have closed the accounts with “zero” balances because I’m not using them.
    In this case what happens to my FICO score?
    Thank You

    • Mary Hunt says:

      That improves your score because your utilization rate has reached 0%. Good for you and congrats on freeing yourself from credit card debt. Even if you were to close some of those accounts, your rate would remain at 0%. I would just leave them for now. In the future you may get notices from the account issuers (banks) that they are closing the accounts for “inactivity.” You want to figure out which credit card (Visa, Mastercard) is the oldest of the acounts—and keep it active. Use it 3 times a year and pay off the balance immediately. That’s all it takes. And you will still be at 0% utilization, which is awesome. Just so you know … 100% utilization is a debt nightmare (that means you are using all of your credit limit(s) and it will ruin your credit score for many years to come. Any use higher than 30% at any time during the billing period is the maximum anyone should ever reach. That’s a rule of thumb. Happy you’re at 0%!

  2. nancy says:

    reading this discussion I just finalized a cash out refinance that actually started with VA cash out that got delayed cause of covid and then my husband died so no VA but conventional so I am paid up and will cancel either macys or a bank card for now Finding out about all other cards unused do I need pay for reports to all 3 CRA or will they be the same

  3. Marilyn says:

    My question is how does on destroy the fancy new metal cards? I did get an envelope to return one of my cards. I also asked if return mail is compromised and the account account #’s are the same are we protected? The answer was yes. But what if the credit card does not offer this?

  4. Sylvia says:

    I’m also trying to rebuild my credit at one point I had 758 but it dipped dramatically when 5 years ago I added my granddaughter to a credit card. For her to establish your credit. Of course, things went South she was becoming a nurse, had only a part-time job and the credit card company raised my limit to $13,000. I didn’t know because I did not get the bill and my name is on the card so I am fully responsible, and I understand that. But the other thing is I want to know how that clause went into credit reporting? I dare to lessen my credit by closing a card? Who introduced that rule or law? Why was it ratified? What is the or what is the goal for them to do such a drastic thing. If we’re trying to lower our debt and income ratio, why make it fail right from the get go? I’m pretty incensed about it

  5. Ingrid Asta says:

    My FICO score is 835. I have had a Target card that I only used once in one year. Target canceled my card with the explanation that a card unused for one year gets,automatically canceled. Pretty tacky of Target. And yes, that cancellation did drop score by several points. I know with my score it makes nodifferebce, other than it is a point of pride for me. Neither my husband and I will never get perfect scores, since we have no debt. FICO punishes you for that.

    • Mary Hunt says:

      Ingrid … that’s not exactly true. You need no debt to have a great score. You do have to demonstrate however that you can manage credit well. There’s a difference 😉

  6. Maria says:

    I have a friend who did not close credit card accounts that she no longer wanted, she just cut up the cards after getting the balance to zero. Should I tell her to go through the process of closing the accounts or is it OK to keep the accounts open even though she no longer uses them?

  7. Red says:

    My credit rate is near perfect, however it recently dipped presumably because my credit union stopped issuing an Amex and changed it to a Visa! That shows as an closing and opening that wasn’t my idea! While I prefer their perks, I truly didn’t need another Visa especially since my second credit Union had recent done a similar thing with their master cards!

    We travel, or did, several times a year and kept multiple different cards because some store only took a particular card, but now they are pretty much all the same! I also kept an account in my name only because of arcane rules about women’s income after the death of a spouse, a just in case deal or if there was a stop on one of our whole accounts due to a breach. And, yes, we have had at least on breach while out of the country.

    My question now is how do I unscramble all these cards without lowering my credit score even more? With the pandemic a couple of cards have started lowering my limits which makes them less useful for emergency like suddenly needing to fly home from abroad.


    • Mary Hunt says:

      If your credit score is 760 or greater and you’re not applying for a new mortgage anytime soon, it probably doesn’t make much difference, other than a matter of personal pride. I will tell you that FICO likes longevity. That means the account you’ve had for the longest time is the most important. Keep that one for sure. Next, keep your credit card accounts at $0 each billing cycle, or as close to that as possible. Make your payment as early in the billing cycle as you can … don’t wait for the last day. Never pay late on any debt you are carrying, or other bills like utilities, mortgage. Follow the steps in the post for closing accounts you don’t need or want any longer.


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