Explore various ways on how to close a credit card account permanently !
Introduction
A credit card is a financial instrument that allows you to make transactions on credit, without having to pay money in advance. However, the experience of using a credit card is not always positive and you may want to cancel your credit card account.
Canceling a credit card involves a certain procedure that differs from bank to bank. Let us look at various ways to close a credit card account permanently.
Reasons to Close Credit Card Account Permanently
The reasons for closing a credit card account permanently differ from person to person. Some of the major reasons are given below:
- High Annual Fee: High annual maintenance fee imposed by credit card companies may prompt you to close the account.
- Missed Payments: Inability to pay credit card bills could be a big reason to close the account.
- Theft of Card: Theft or losing your credit card will require you to close the credit card account permanently.
- Too Much Spending: Sometimes, a credit card can tempt you to buy unnecessary goods. This can put additional burden on your finances.
Things to Keep in Mind before Closing your Credit Card Account
Before closing your credit card account, take care of the following things to avoid future complexities.
- Check for Automatic Payments: Check if any automatic payments are linked to your credit card. Link a different card to automatic payments before closing the credit card account.
- Check your Credit Score: Closing credit cards may impact your credit score. It is necessary to take steps to reduce the impact of closing a credit card.
- Clear Pending Dues: If there are pending dues, you cannot raise a request to cancel your credit card account.
- Check Potential Penalties: Enquire about the possible penalties imposed for canceling the credit card.
- Use Accumulated Rewards: Encash your reward points accumulated on the credit card before closing the account.
- Obtain Confirmed Request on Card Cancellation: Ask the customer executive of the bank to provide the exact date on which the card has been or will be deactivated.
How to Cancel a Credit Card?
There are multiple ways to cancel a credit card account. You can follow anyone of these methods to successfully cancel your credit card:
- Calling Customer Support: Some credit card issuers allow customers to cancel their credit card by calling the customer support and following the required procedure.
- Online Request Submission: Some issuers have the option to cancel credit cards by visiting their website. You may be required to fill a form as part of the procedure. The representative of the issuer will call and confirm with you before closing your account.
- Submitting a Written Request to Your Credit Card Issuer: You can make a written request to cancel your credit card through a registered post. However, this procedure may be time-consuming.
- Writing an email to your Credit Card Issuer: You can also send an email to the issuer, requesting them to cancel your credit card. The representative may contact you to get additional details regarding your credit card account.
How to Close Credit Card Accounts Online?
The steps to close a credit card account online differs from bank to bank. Following are the general steps to close your credit card account online:
- Step 1: Visit the official website of the bank that has issued you the credit card.
- Step 2: Login into your account using credentials such as Mobile number or email id.
- Step 3: Navigate to the credit card section of the website and look for options like “cancel credit card”, “close credit card” etc.
- Step 4: Provide details like your card number, date of issuance, reasons for closure etc.
- Step 5: Click on the ‘submit’ button after verifying all the information properly.
- Step 6: Confirm your request after getting a call from the bank’s representative.
Related Articles to Read: Benefits of Credit Cards In India
Conclusion
Credit cards can be a useful financial tool if used appropriately. Cancel your credit card account only as a last decision as it may impact your credit score.
Related FAQs:
1. How to Cancel a Credit Card?
You can close a credit card account by calling customer support, writing email, through online requests etc.
2. What is the Best Way to Close a Credit Card?
Using online mode is the best and secure way to close a credit card account.
3. How to Close Credit Card Accounts Online?
Visit the official website of your bank and login into your account. Fill the request form with required details to close the credit card account.
4. Will Closing a Credit Card affect Credit Score?
Yes. Canceling a credit card with a high limit can affect your credit score in a negative way.
5. Will Closing my Unused Credit Card be Beneficial?
Yes. Closing an unused credit card can help you improve your credit score and also avoid credit card charges.
