How To Close Credit Card?

How to Cancel a Credit Card 

Wondering how to cancel credit card? Nowadays, you can easily cancel a credit card from the comfort of your home. For this, you simply need to visit the lender’s website or send an email to cancel your credit card. Alternatively, you can opt for the traditional methods of cancelling the credit card via customer care, post, or by visiting the bank branch. Continue reading to know ‘how to close a credit card account’.

How to Close Credit Cards Online

You can cancel your credit card online by following any of the two ways mentioned below:

1. Via the Bank’s Official Website

• Step 1: Visit the card-issuing lender’s official website.

• Step 2: Fill out the credit card cancellation or closure form.

• Step 3: Submit the form.

Post form submission, you will receive a call from a bank representative to verify and confirm the credit card cancellation request.

2. By Sending an Email

To cancel a credit card through email, you must send an application to the lender’s dedicated email address mentioning the card details, such as credit card number, expiry date of the card, and your name, along with your registered mobile number. A bank representative will then verify your request and confirm upon credit card cancellation. 

Note: Please check if your lender provides this credit card cancellation facility.  

How to Close Credit Card Offline

Searching for how to cancel a credit card offline? Follow the ways mentioned below:

1. Via Post

You must send a credit card closing application mentioning details such as your name, credit card number, expiry date on the card, contact details, etc., and send it to the lender’s official address via post. You can find the postal address on the official website of the credit card-issuing company.

2. By Calling Customer Care

The easiest way to cancel a credit card today is via credit card customer care. Calling customer care to close your credit card account will require some verification on your part. Keep the card handy!

3. By Visiting the Bank Branch

You can also cancel a credit card by visiting the lender’s branch. Ensure to take your credit card, ID, and address proof. You can initiate the credit card cancellation request with the help of an official representative.

Is it Better to Close Unused Credit Cards?

You may be wondering if you should close your unused credit card. Many experts advise that it is better to leave unused credit cards open because closing them may affect your credit score. So, if you’ve had a credit card for about 2-3 years now, it is actually a bad idea to go ahead and close it. If you’ve had the card for only a few months, then closing the card may not have much impact on the credit score. Here are a few situations where you must consider closing your credit card as it can have a direct impact on the length of your credit history as well as credit utilisation:

• When the credit card does not provide many benefits

• When you have too many credit cards

• When the credit card’s fees are too high

Things to Keep in Mind While Cancelling Your Credit Card

If you want to cancel your credit card, do consider certain things:

• Clear All Dues

You may have credit card dues related to EMIs, cash withdrawals, loan amounts, etc., on your credit card. Ensure to clear all the payments before requesting credit card cancellation. If you do not clear the dues, the bank or credit card issuer may not let you cancel the credit card account.

• Enjoy Facilities Before Cancelling Credit Card

Ensure that you claim all unredeemed rewards you have accumulated on your credit card.

• Stop Automatic Transaction/Making New Transactions

Before cancelling the credit card, it is also imperative to stop using it for at least a month.

• Learn About Closing Process and Penalties

Before you opt for the credit card cancellation process, you must know the closing procedure or rules laid down by the lender. This practice will help you avoid any penalties or additional charges outside the mutually agreed terms and conditions. Do not forget to check the credit card statement so that you can also avoid paying unnecessary charges just before closing the credit card.

• Obtain a Written Confirmation

Once the credit card cancellation process is complete, you must obtain written confirmation from the bank. This confirmation is important to verify that there are no pending dues between either party. It might also come in handy in case there’s a related error on your credit score.

• Add-on Cards Cancellation

While cancelling a credit card, the add-on cards (if any) also get cancelled automatically.

• Non-Availability of Balance Transfer Facility

As soon as you raise a request for a credit card cancellation process, you cannot apply for the balance transfer process to another bank account.  

Customer Care Numbers to Cancel a Credit Card for Top Credit Card Issuers

Details to be Included in the Credit Card Cancelation Request

Here are a few quick details that must essentially be included in the credit card cancelation request:

• Name of the card

It should be written as it appears on the card. For example, Platinum Card, VISA, etc.

• Name of the cardholder

It should be written exactly as it appears on the card with the first name, middle name, and last name.

• Card Number

Write the full 16-digit card number

• Expiry Date

It should be written in the format dd/mm/yyyy

How to Close a Credit Card without hurting your Credit Score

As discussed above, closing a credit card can have a definite impact on your credit score. Hence, it’s advisable to follow a process while cancelling your credit card. Here’s how you can go about it:

1. Redeem any existing Rewards

Before you plan to close your card, start with first redeeming and enjoying all the benefits and rewards that have accumulated on the card so far. Once the card is closed, you will lose out on all these rewards earned.

2. Balance

Once you decide to close the credit card, remember to pay off any balance during the full and final settlement. The balance must be zero or you won't be able to close your card.

3. Contact the Credit Card Company

To finally close your credit card, call the official number of the issuing bank or financial institution and tell them your reasons for cancelling the card. They might try to tempt you with better rewards and low-interest rate, but go ahead and close your credit card.

4. Credit Report

After about 30-45 days of cancelling your card, check your credit report to confirm that the account was closed and the balance is now zero. If there are still any issues, you can contact the credit bureau and file a complaint.

When Will My Credit Card Account be Considered as Closed?

• A written confirmation will be sent by the issuing bank that the card has been permanently closed

• You can also check your credit report 30-45 days after cancelling your card to see if it is mentioned on the credit report that your credit card has been closed. All the closure details will be mentioned on the credit report.

Consequences of Cancelling Credit Cards

• Reduced credit limit

• Increased credit utilisation ratio

• Reduced credit history