How to Close Credit Cards?

Close Credit Card

Banks offer the option to cancel your credit card if you find yourself falling into a debt spiral or if you pay hefty annual fees for a card you don’t use. You can either opt to close your credit card online or deactivate it offline, depending on the options offered by your credit card issuer. Some of the common offline and online methods of cancelling credit cards are mentioned below:

On this Page: Cancel Credit Card Online | Deactivate Credit Card | Before Closing Credit Card | Outcome of Closing Credit Cards | FAQs

How to Cancel Credit Cards Online?

The procedure for closing a credit card is simple and easy to follow:

1) Close Credit Card using NetBanking Account

To close your credit card via the net banking portal, you would need to follow the steps mentioned below:

• Visit the official bank website

• Log in to your credit card netbanking account

• Go to the ‘credit card’ section and select ‘Cancel Credit Card’.

• Fill in the credit card closure/ cancellation form.

• Select the card you wish to close.

• Verify the details and click on submit.

Once submitted, a bank representative would get in touch with you and inform you that your credit card has been cancelled.

2) Cancel Credit Card via Email

To initiate credit card cancellation, you can send an application via email. It should list down all the necessary card details- credit card number, expiry date, as well as your name and registered contact number. Once you send the email, a bank representative would get in touch with you and confirm the successful cancellation of your credit card.

The email IDs of the top banks in the country are listed below:

Disclaimer: The bank is not a Finserv MARKETS’ partner. Offers would be from partner banks/NBFCs only.

How to Deactivate Credit Card Offline?

Now that you know how to close a credit card account online, here is how to do it offline.

1) Cancel Credit Card via Post

To cancel your credit card, you can send an application to the bank’s registered mailing address. You would need to mention all relevant details, such as your name, credit card number, the expiry date mentioned on the card, as well as your contact details and address in the application.

2) Deactivate Credit Card via Customer Care

You can call on the bank’s credit card customer care helpline and request the executive to close your credit card account. The executive would ask for a few details. Once validated, your credit card would be cancelled.

Disclaimer: The bank is not a Finserv MARKETS’ partner. Offers would be from partner banks/NBFCs only.

3) Cancel Credit Card by Visiting the Bank Branch

You can also close your credit card by visiting the nearest branch of the bank that has issued your credit card. You would need to carry your credit card and proof of identity in such a case. Once you request credit card cancellation, a bank executive would verify your documents and help you cancel your credit card.

Things to Keep in Mind While Closing Your Credit Card

While cancelling your credit card there are a few things you should remember-

1) Clear Existing Dues

Ensure all your credit card dues such as EMIs, cash withdrawals, balance transfer, loans, and so on, are cleared before applying for credit card cancellation. Chances are that if you fail to pay off the remaining balance, your credit card issuer may not allow you to close the account. You can also opt to transfer your existing debt to a different credit card by opting for a credit card balance transfer facility.

2) Redeem Rewards

Your accumulated credit card rewards will be lost once the credit card is cancelled. Hence, you should make sure to redeem your reward points or air miles before placing your cancellation request. Go through the bank’s rewards program fine print to figure out the terms of redemption. For example: In the case of travel credit cards, you might be able to redeem points in the form of air miles, hotel stays, etc.

3) Cancel Subscriptions/ Automated Payments

Ensure that all automatic credit card payments are cancelled prior to requesting for a credit card closure. Once your card is closed, you can update the automated payments and subscriptions on your new card to eliminate payment issues.

4) No New Transactions

Stop making new transactions on the card at least one month before placing the credit card cancellation request. Any new transactions will be added to your credit card statement which would need to be paid at the end of the billing period.

5) Check Credit History

Check your card’s credit history and resolve all doubts and issues on your credit card before closing it. You would need to check the credit report after cancelling your report too to see if the reason for closure is mentioned as ‘closed at consumer request’ or ‘closed by issuer’. Do contact your bank if it is the latter as it can affect your credit score.

6) Contact Customer Care

Do get in touch with the credit card customer care of your bank to know the exact date when the credit card cancellation will be processed. This would do away with the need to pay extra charges. Collect a written confirmation from the bank once the cancellation is complete.

7) Review Closing Procedure

Go through the bank’s procedure for closing credit cards. This will help you to ensure a swift and easy cancellation process while avoiding any penalties.

What are the Consequences of Closing Credit Cards?

You should review your decision to cancel your credit card thoroughly as it can have some effects on your financial health. These include-

• Reduced total credit limit.

• Significant rise in the credit utilisation ratio.

• A higher credit utilisation ratio would lower the credit score.

• A lower credit score due to reduced average credit history.