Pro tip: Review your credit card accounts 30 days after you close them

There are several reasons you might decide to close a credit card. Once it's closed, you may easily forget about it.

Yet, a recent issue made me realize the importance of checking on your credit cards 30 days post-closure to prevent future complications.

Let's explore the reasons to revisit your recently closed accounts.

What occurs with closed accounts?

Once you close a credit card, you'll forfeit its benefits and won't be able to make any purchases with that card. Depending on the issuer, you might also lose access to online account management if you don't have any other open accounts with that bank.

Nonetheless, you will still receive bank statements until the balance is fully paid off and reaches $0. Additionally, if you close your credit card within the bank's designated period (usually 30 days) after the annual fee is charged, you may qualify for a refund of that fee.

What was my experience?

I closed my Alaska Airlines Visa® Business card issued by Bank of America in December 2021. A few days later, I checked the account to confirm that the annual fee had been waived, as the phone representative assured me during the closure. Content, I stopped keeping an eye on the account.

In September 2022, the Alaska Airlines Business card featured an attractive sign-up bonus. I attempted to reapply for the card, only to be taken aback when I was denied. The reason was even more shocking: Bank of America claimed I had a past-due account in collections due to non-payment.

An automation glitch reinstated the annual fee on my closed account, and my contact information was somehow erased. Unbeknownst to me, the account carried a balance for nine months, leading to late payment fees and interest accumulating each month.

Moreover, the account had been forwarded to Bank of America's collections department, reporting the delinquency to business credit bureaus and consequently impacting my business credit score. (If it had been a personal credit card, the negative information would have appeared on my personal credit report.)

Bank of America identified the mistake and cleared my account balance, but checking my credit card after closing it would have led to a quicker resolution. A 30-day period is usually sufficient for any final statements to be processed, at which point any billing errors should become evident.

Identifying and correcting this issue sooner could have allowed me to be automatically approved for my credit card application instead of having to sort out problems and later request reconsideration after the initial denial.

Main takeaway

A month after closing a credit card, it's important to review the account to ensure everything is correct. Has the annual fee been removed? Does the bank have your updated contact details for any potential issues? Confirming that your account closes properly can help prevent problems like unnecessary fees or future application denials.

Moving forward, I will definitely set reminders to review my credit cards 30 days after closing them to ensure everything is in order. This way, I can address any potential issues much earlier—before they escalate.