HomeBank-Of-America-FaqHow-To-Close-Bank-Of-America-Credit-Card

How to Close Bank of America Credit Card

If you're considering closing your Bank of America credit card, it's crucial to understand the process from start to finish. Whether you're aiming to cut down on credit cards, avoid paying high annual fees, or just want to manage your credit accounts more efficiently, closing a credit card requires careful planning and understanding of the implications on your credit score. Here’s a comprehensive guide on how to close your Bank of America credit card.

Evaluate Your Decision to Close

Before you jump into closing your credit card account, take a moment to consider your decision. Here are key factors to weigh:

  • Impact on Credit Score: Closing a credit card can affect your credit utilization ratio, which is the amount of credit you're using compared to your total credit limit. A higher utilization ratio could potentially lower your credit score.

  • Credit History: Keeping your oldest credit card open can be beneficial as it adds to the length of your credit history. Closing an old account may impact this.

  • Annual Fees: If the card has a significant annual fee and the benefits are not useful to you, it might be worth closing.

  • Rewards: Make sure to redeem any rewards or points before closing the account as you might lose them.

Preparing to Close Your Card

1. Pay Off Your Balance

Before you close your credit card, ensure that you have paid off any outstanding balance. Bank of America does not allow you to close an account with an outstanding balance. Here’s how to pay your balance:

  • Regular Payment: Log in to your Bank of America online banking account and make the full payment.
  • Automatic Payment: If you have automatic payments set up, ensure through your payment history that the correct amount has been paid.
  • Payment by Phone: You can call the number on the back of your card to make a payment.

2. Redeem Rewards

If your card offers rewards like cash back, travel points, or other incentives, redeem them before initiating the account closure. Neglecting this could lead to forfeiture of your accumulated rewards.

3. Review Statements

Review your last few statements to ensure there are no pending payments or fraudulent charges. Contact customer service if you find any discrepancies.

How to Close Your Bank of America Credit Card

There are several ways you can proceed with closing your credit card. Here’s a step-by-step guide on the methods available:

By Phone

  1. Contact Customer Service: Call the number on the back of your credit card.
  2. Confirm Identity: Be prepared to confirm your identity by providing your full name, social security number, and account details.
  3. Request Cancellation: Inform the customer representative that you wish to close your account.
  4. Ask Questions: During this call, it’s also the perfect time to ask about any potential consequences, like losing rewards or how it might impact your credit score.
  5. Note Confirmation: Ensure you request confirmation of account closure via mail or email.

Online

  1. Log In: Access your Bank of America account online at bankofamerica.com.
  2. Navigate to Contact Us: Click on "Help & Support" and then the "Contact Us" option.
  3. Secure Message: Send a secured message requesting account closure.
  4. Wait for Response: Bank of America will respond with further instructions or confirmation of closure.

In-Person

  1. Visit a Branch: Find a nearby Bank of America branch.
  2. Bring Identification: Have your photo ID and credit card ready.
  3. Speak with a Banker: Ask to speak to a personal banker to discuss closing your credit card.
  4. Obtain Confirmation: Request a written confirmation of the closure.

Post-Closure Considerations

Monitor Your Credit Report

After closing your card, review your credit report to ensure the account status reflects "Closed." If you notice discrepancies, contact customer service immediately.

Destroy Your Card

Once your account is confirmed closed, cut your card into several pieces to prevent any possibility of its misuse.

Consider Maintaining Credit Utilization Ratio

To counterbalance any potential impact on your credit score, consider requesting a credit limit increase on your other cards or paying down existing balances.

FAQs and Common Concerns

  • Can I Reopen a Closed Bank of America Credit Card?
    Unfortunately, once a credit card is closed, you generally cannot reopen the same account. However, you may apply for a new card.

  • Does Closing My Card Affect My Credit Score Immediately?
    The impact might not be immediate, but changes to your credit utilization ratio and credit history length will be reflected in subsequent credit reports.

  • What About Any Automatic Payments?
    Ensure to update any subscription services or automatic payments, previously assigned to your Bank of America card, to avoid disruptions.

  • What Say If They Offer a Retention Incentive?
    Sometimes, banks offer enhancements to retain you as a customer, such as waiving the annual fee for a certain period, or offering bonus points. Decide if these align with your financial goals before accepting.

Enhancing Financial Management

If you’re closing your Bank of America credit card as part of a broader financial strategy, ensure to regularly review your credit reports, budget effectively, and explore financial management tools. This holistic approach helps you maintain a healthy financial profile.

Looking Forward

Remember, closing a credit card is a significant decision in your financial journey. Consider consulting with a financial advisor if you're uncertain about the best course of action. For further resources on effective credit management, visit Bank of America’s learning center or explore financial literacy courses. This proactive approach ensures your finances remain robust and resilient.