To cancel an OpenSky credit card, call customer service 24/7 at (800) 859-6412. A customer service representative will guide you through the process. You can also cancel the card by mail. Send your request to the OpenSky address for correspondence, billing disputes and general questions: OpenSky Card Services, PO Box 9224, Old Bethpage, NY 11804-9224. Be sure to include your account number on any written correspondence.
Once you cancel, OpenSky may request immediate payment on the total balance due. It may apply part or all of your security deposit toward any outstanding balance. If your remaining security deposit balance is more than $1, OpenSky will refund that amount within 6 weeks after you close the account.
Closing a secured credit card has the potential to hurt your score. But that’s not because it’s a secured card. You run the risk of a slight drop in your score when closing any credit card because it can make your credit history seem shorter and reduce the total amount of credit you have available. And the impact usually is most significant when you close your oldest account.… read full answer
All else being equal, it’s best to keep unused accounts open. But it’s a slightly different story if you’re paying an annual fee or leaving a deposit in the custody of your card’s issuer. That’s especially true if you don’t need your credit score to be in top shape in the very near future. You don’t want to waste money on something you never use, after all, or give your card’s issuer an indefinite loan. And since secured cards typically don’t pay interest on deposits, there are far better uses for your fee and deposit money in the long run. For example, if you placed a $200 deposit on a secured credit card in 2008 and never closed your account, that $200 would still be $200. But if you invested that money in an S&P 500 index fund, you’d have more than $600 today.
Of course, you’d need to use a secured card for a while to improve your credit score enough to qualify for an unsecured card. And if you consistently pay your secured card’s bill on time, the issuer may offer to refund your security deposit. So it’s important to weigh all the different variables before deciding whether or not to close a secured credit card. And that includes how soon you plan to apply for a mortgage, auto loan or other major financial commitment for which your credit will be checked. A bit of temporary credit score damage won’t cost you if you don’t try to borrow until your score rebounds.
Here’s what you need to know about closing a secured credit card:
If you close the card, your average account age decreases and your total credit utilization increases. This may lead to a temporary credit score drop.
If you don’t close the card, it will continue to report positive information to the credit bureaus each month, even if you don’t use it and there’s no balance.
If your card charges an expensive annual fee, you may want to close it rather than pay every year for a card you’re not using.
When you close a secured credit card, you’ll get your deposit back minus any outstanding balance.
Some issuers will let you graduate to an unsecured card after consistent on-time payments. That means you’ll get your deposit back and often receive better benefits on your card.
In all, closing a secured credit card might not be the greatest idea. But most secured card users do it at some point. And you can lessen the impact with good timing.
What happens to your credit score when you cancel a credit card varies based on the rest of your credit history. Generally, your credit score will temporarily go down a bit when you cancel a credit card account because it reduces the amount of credit that you have available, increases your overall … read full answercredit utilization and can make it seem like your credit history is shorter than it really is. Closing one of your oldest accounts can be especially problematic in that regard. Moving forward, you’ll also have one fewer account reporting positive information to the major credit bureaus each month.
Cancelling a credit card can still be the right decision, though. For example, if you’re paying an annual fee for a card you don’t use, and you’re not planning to apply for a mortgage or car loan in next few months, you’re probably better off closing the account. Credit scores typically rebound within 3-6 months of cancelling a credit card. And if you don’t plan to borrow during that time, the temporary dip won’t cost you. An unused credit card with no annual fee is another story, however. Even a credit card with zero balance still reports positive info to the credit bureaus on a monthly basis, which means it’s an asset to your credit score.
In any case, you should know all the facts so you can make an informed decision. And you can find more details below.
Here’s what happens to your credit score when you cancel a credit card:
Your credit score often goes down because the average age of your open accounts decreases and your overall utilization increases (since you have less available credit).
Closing newer accounts won’t have as much of an impact as closing older ones.
Your credit score should rebound within 3-6 months of cancelling your credit card account, as long as you have at least one open credit card remaining and pay all your bills on time.
The score drop won’t matter too much if you don’t need the best score possible for those 3-6 months. For example, if you’re not applying for a loan or other card, trying to find an apartment or applying for jobs, your score shouldn’t matter too much.
When you don’t cancel a credit card, it can continue to help your credit score. Even if you don’t make purchases with it, it will still report positive information to the credit bureaus each month. This is definitely worth considering if your card does not charge an annual fee.
You should expect your rating to dip temporarily when you close a credit card account, especially if it’s an older one with a high limit. But you can see exactly what happens to your credit score when you cancel a credit card by monitoring it for free on WalletHub, the only site with free daily credit score updates.
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