There comes a time when you might feel that you no longer needs a credit card, or that you don’t want one anymore. Sometimes, people forget to use their card and rely mostly on debit cards and cash. In other cases, a customer may switch to a better credit card and forget to close the old one. According to industry experts, it is important to close or cancel the credit card as soon as possible. This will ensure the customer does not rack up unnecessary charges.
One must bear in mind that cancelling a credit card may have an impact on the credit score. If you reduce your overall available credit limit, this can negatively impact your score. However, if you keep your line of credit open and do not utilise at least 40% of the credit limit, this will negatively affect your score as well. So, it is better to close the card or transfer the credit limit to a better card.
A few customers may not be able to close the card due to a lack of time, but there are some who aren’t aware of the process. Closing a credit card account can be done easily through various avenues that banks provide. Mentioned below are all the details one requires to cancel or close a credit card without the hassle.
There is no standard procedure for closing a credit card. Each bank provides a different method or process to raise a request for credit card cancellation or closure. Hence, the credit card member needs to know the bank specific procedure for credit card closure. Listed below are a few methods allowed by the banks for cancelling a credit card.
For example, with an SBI Card, the credit card division of the State Bank of India (SBI) accepts credit card cancellation requests over the phone. SBI Credit Card users can call the SBI credit card customer care number to raise a request for credit card cancellation.
We can take HDFC Bank as an example in accepting credit card cancellation request through written requests. The bank requires the cardholders to write a credit card membership termination request and send it to its credit cards division in Chennai. Along with the written request, customers need to enclose the credit card, which needs to be closed, cut diagonally into two pieces. Any add-on credit card belonging to the primary credit card should also be sent along, cut in the same fashion. Only when the banks receive the cut cards and payment of total outstanding on the card will they consider the cancellation request.
There are some other banks which provide online modes to raise credit card closure requests. Check with your bank or its official website to find the availability of the facility.
These are the common methods offered by banks to cancel or close a credit card. Some banks may also allow the customers to terminate their credit card membership through net banking. Cardholders can check the internet banking account linked to their credit cards to know the availability of option for their card.
Cancellation of credit card is a simple process but there are a few things which need to be settled before closing the card. By applying for credit card cancellation, the cardholder agrees to all the terms and conditions related to the bank’s cancellation policy. Hence, even before applying for credit card cancellation, one needs to know a few things to have a smooth separation.
Just like how a credit card user has a right to cancel the credit card at any point of time, banks also possess equal rights to terminate the membership of a cardholder for various reasons. The banks at their discretion can cancel all or some privileges of the credit card at any time without even giving any notice to the cardholder or without providing any reason.
Some instances when a bank can cancel a credit card are listed below.
Cancelling or closing a credit card is an easy process. But doing it without hurting the credit score is little tricky. Here are a few tips that could help you make a wise move with respect to closing your credit card.
Blocking a credit card is temporary whereas closing a card is permanent. A credit card should be blocked when it’s lost or stolen to prevent any kind of misuse. Sometimes, banks may also block the card if they find any kind of suspicious activity or transaction on the card. Irrespective of the reason, blocking a credit card is reversible. On the other hand, closing or cancelling a credit card terminates the cardholders membership with the bank. He/she need to submit the card to the bank, once it is cancelled. No other transactions will be allowed once the card is cancelled. However, the card member can raise a request to re-active the cancelled card in case, he/she wants the same credit card again.
Not all the banks provide an option to cancel a credit card through internet banking. Cardholders need to check their internet banking accounts to find the availability of the option.
It depends on the bank’s terms and conditions. While some banks require the cardholder to send the cut credit card to the bank to initiate the cancellation request, other banks recommend the customers to cut the card into pieces once it is cancelled instead of discarding it as it is.Check How to Close or Cancel Other Banks Credit Card Online
Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.