Four Opt-Out Mistakes to Avoid |
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by: Janna Weiss
Did you get fed up with the proposed credit card fee hikes and decide to exercise your right to opt out? If you make a mistake when you opt out, you might still be subject to the new, higher rates. Before you give up on your credit cards, make sure you’re opting out the right way. Here are four mistakes to avoid when you tell your credit card company, “Thanks, but no thanks.”
Don’t Use the Card – Even by Accident
If you use the credit card you’re trying to opt out of, your decision will be nullified and your account will remain open at the higher interest rate. Some consumers carry so many cards in their purse or wallet that they might accidentally grab and swipe the card they’re trying to get away from. To avoid this, put away all the credit cards you’re trying to close so that you won’t use them in a weak (or distracted) moment.
Change Automated Billing Info
Do you pay your bills online? Are some or all of the payments automated? If you’ve been making payments with the credit card you want to opt out of, you should make sure to switch your billing to another credit card before you opt out. If the bills continue to go to the credit card in question, you’ll be subject to the higher fees and interest rates. Check all your billing statements for annual and semi-annual charges, too, to make sure they’re not being billed to the credit card.
Beware of Stored Billing Information
If you do your annual holiday shopping online, be sure that your card info hasn’t been stored by your favorite online retailers. If they have the credit card number on file, they could use it as a back-up source of funding if your other credit card doesn’t work for whatever reason. You should be able to find out which card details the stores have on file by visiting your user account settings or by contacting the store’s customer support.
Avoid ID Theft and Credit Card Fraud
It’s always a good idea to take every precaution when your identity and finances are on the line, but it’s even more important if you choose to opt out of a credit card agreement. Imagine finding yourself responsible for rate hikes that stem from someone stealing your card number and using it to make fraudulent charges! Luckily, if you can prove that your card was involved in fraud, you should be able to opt out of the new rates. But such an endeavor takes time and effort, so focus on preventing, rather than fixing, this situation. Cut up or shred the cards you don’t want to use, and click here to read about more ways to protect your personal information.
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