When you cancel your unused credit card

If you plan on canceling a credit card make sure you do it carefully and do not cause harm to your credit scores. Canceling a card can hurt your credit score. Don’t cancel it while you still have a balance, pay it off first.

Call the card issuer and cancel
Follow up in writing
Get a copy of your credit report and make sure it’s updated
Cut up your cards
Repeat, if necessary.

Check your credit report

Your credit report should not say “closed by creditor” on it after you have closed an account. This is a negative mark on your report. If anything it should say “closed by customer”.

If it has been reported as closed by issuer you need to get that fixed by the credit card company. Call customer service and report the mistake, follow up, in writing send by certified mail then check your credit report again. You can also dispute the error through the credit reporting bureau. Send a note to the credit reporting bureau explaining the error in 25 words or less. Then they will do an investigation and report back to you.

It is recommended that you check your credit report annually to check for errors and identity theft problems.