Bank of America is a major financial institution in the United States. It has over 65 million clients across the country. The customers love it, and so do the stakeholders. However, sometimes, you might wish to terminate your account. You may discover that your card no longer suits your needs for those who hold Bank of America credit cards. This is when you look for answers to “how to close my Bank of America credit card?”
There are many ways to close your Bank of America credit card. Here are the topmost steps to close your Bank of America credit card:
- You can close your credit card by phone. Use the toll-free number at 1-800-732-9194 to schedule a cancellation.
- The other way to close your credit card is to visit the bank. Visit one of the company's financial centers and meet with a personal banker to close your card.
- You can also close your credit card through the mail.
What Are the Reasons to Close My Bank of America Credit Card?
It's simple to close a Bank of America credit card account. All it takes is a phone call. However, before you close your credit card account, think about a few things. There are numerous valid reasons to close a card, including the following:
- You've overspent on the card, and shutting it eliminates the incentive.
- It has a high yearly price, and the incentives are insufficient to compensate.
- You are not using the card and would prefer to have fewer cards to manage.
While there may be some advantages to canceling your card, evaluating the drawbacks is also necessary. For instance, discontinuing a credit card might have a detrimental effect on your credit score.
What Are the Disadvantages of Closing Your Bank of America Credit Card?
To begin, canceling a credit card and eliminating that credit line reduces your total credit limit. If you continue to use the same amount of credit, your credit utilization ratio will grow. Even if you do not make any further transactions on a separate credit card, you will consume a greater portion of your total available credit.
Credit usage ratios that are too high might have a detrimental effect on your credit score. Moreover, credit usage accounts for 30% of your credit score. Therefore, this may have a sizable influence.
Closing your oldest credit card will help you lower your credit history length. This factors for 15% of your credit score. A credit card in top form will remain on your credit record for up to ten years.
Even so, if the card you're considering shutting is your oldest and does not charge an annual fee, it is better to leave it active. Moreover, you can make a minor transaction on it at least once a year to prevent it from expiring due to inactivity.
Furthermore, if your Bank of America credit card is your sole credit card, discontinuing it may harm your credit mix. This mix refers to your credit types, such as a car loan versus credit cards.
Credit mix accounts for 10% of your overall credit score. In general, depending on your position and whether you will want strong credit soon for a major purchase (or apartment or mortgage application), the disadvantages of shutting your account may exceed the benefits.
You can cancel credit cards without affecting your credit score if you first pay off all of your outstanding amounts. Getting rid of a credit card won't have any effect on your credit history.
How To Close My Bank of America Credit Card?
If you're considering canceling your Bank of America credit card, it's a good idea to examine your options first. If you're canceling your card due to dissatisfaction with the benefits or the annual fee, you can seek an upgrade or downgrade from Bank of America.
Therefore, you can upgrade your account to have access to a card that offers higher benefits. Downgrading may enable you to avoid paying an annual charge that you no longer desire.
You can also cancel the card because you believe it may encourage you to splurge. However, you may keep it open and only remove it from your wallet. Therefore, you will not store it as a preference in any online stores.
If the card isn't readily available in-store or while shopping online, you will see that you're less inclined to splurge. There are several options for canceling the bank of America credit card.
1. Using The Phone
Using the phone is the fastest and most convenient way to cancel your Bank of America credit card membership. Use the toll-free number at 1-800-732-9194 to make a cancellation. The bank will complete the account termination once you talk with a customer care person.
2. Visit The Bank
Customers can also close their credit card accounts by visiting any Bank of America location. Visit one of the company's financial centers and meet with a personal banker to close your account.
3. Through The Mail
Furthermore, send a formal request to Bank of America, PO Box 9822334, at which point they will close your account.
4. Online Chatting
Sometimes, customers are unable to close their credit card accounts online with the firm. In such cases, the customer care agent will help you cancel if you contact them online.
Which Factors to Consider Before I Close My Bank of America Credit Card?
There are few things you may consider before closing your bank of America credit card.
Request A Credit Limit Transfer to Another Card
A Bank of America credit card is ideal for several purposes. You can request the bank to move your credit card limit to another card if you already have one.
For example, suppose you're shutting down a $2,000 Bank of America credit card. However, you want to retain a second Bank of America card with a $4,000 credit limit. The credit limit on your second card would be $6000 if you asked Bank of America to move it from your first card. You may not be able to transfer the whole credit limit from your first card even when they accept your request.
Use Your Rewards
Before canceling your Bank of America credit card account, be sure you've used up all of your rewards points. Credit card benefits can be ideal for paying your bills. Moreover, you can redeem your cash back or points for anything else.
Determine The Impact on Your Credit Score
Sometimes, canceling your credit card is the greatest option for your financial health. However, canceling a credit card with a high spending limit might damage your credit score. Credit agencies assess your creditworthiness by looking at different criteria. This includes payments and the duration of your credit.
However, banks also look at how much money is accessible to you relative to how much you're using. This is widely known as the credit utilization ratio: the smaller the ratio, the less the danger in lenders' view.
Credit bureaus want to see your credit usage ratio at 30% or below. Therefore, canceling a card with a high spending limit and zero debt might damage your score.
You are well aware that closing a credit card account might harm your credit score. Occasionally, the impact on your credit score is fair, and you'll likely see it rebound over a while.
However, if you're planning a major purchase that would need a credit check soon, you may want to reconsider. If the impact on your credit score is significant, it may end in you paying a higher interest rate on a new vehicle loan.
If you don't use your Bank of America credit card, closing your account might help delete the card from your wallet. You can end your Bank of America account by phone, in person, or by mail.
However, you need to think about the consequences of closing your account on your credit score and financial condition before doing so. You may also transfer your credit limit or upgrade or downgrade your card as an option.