Having a credit card gives you the option of having an instant loan in your pocket and most people tend to use it to their advantage. But, there are also times when people feel like they no longer need the card or that they are better off without it. So, they often go ahead to cancel or close their credit card. If you are a Kotak Mahindra Bank Credit Card holder and feel like you want to cancel your card, here’s an article on how you can go about it.
How To Close Or Cancel A Kotak Mahindra Bank Credit Card
Kotak Mahindra Bank has a clear cut procedure for their cardholders on how they can go about cancelling their credit card. Here’s the process listed out for you.
Through Kotak customer care: Any Kotak Credit Card holder looking to cancel their card can directly call the customer care number at 1860 266 0811 and lodge an official request to the customer card executive for cancellation of their card. The executive will give them the instructions on how to go ahead with the process.
Through a letter: Another way to cancel a Kotak Mahindra Bank Credit Card, according to the bank, is to send a written request stating that the card needs to be cancelled to the bank branch. Once the bank receives the request, they will go ahead with the entire process.
Things To Keep In Mind When You Close / Cancel A Kotak Mahindra Bank Credit Card
Here are some of the important things you need to keep in mind when cancelling a Kotak Mahindra Credit Card:
Cutting the card diagonally: The bank states that when sending them a cancellation request, it will require a copy of the defaced card and along with the letter. The bank explicitly states that any charges are incurred on the card, while the closing request is being processed, will be charged for the cardholder and they should be the one clearing the bill. Also, the bank says that in case the cardholder has intimated that the card is cut but hasn’t received a copy and a transaction happens anyway, the card owner will be required to pay the bill amount.
Redeem the reward points: The cardholder needs to redeem their reward points before filing a request for cancellation. In case they don’t, the bank allows a short window to redeem the balance even after requesting for closure of the account. If the individual fails to do so within this period, all the remaining points will lapse and the bank will not be held responsible.
Cancel automatic payments: People tend to opt for automatic payments on their credit cards as it gets them a few extra reward points, and also allows them the peace of mind of not having to individually pay all the bills themselves. Before going for a card cancellation, they need to cancel any and all such payments linked to their credit card. If a bill payment goes through after the cancellation is initiated, the entire process could get delayed.
Clear the outstanding amount: Before cancelling the card, the card owner needs to make sure that they clear the outstanding amount on their credit card. In case they don’t do so and send in the request anyway, the bank can and will outright deny the request.
Check the final statement: A cardholder should always look at the final statement on their credit card account before cancelling their card. There are times when a transaction could go ahead without the owner’s approval or notice, and a simple follow through of the statement will help them avoid any complications.
Will A Closed Or A Cancelled Credit Card Affect My Credit Score?
Yes. A closed credit card can have an impact on a person’s credit score. This may not always be the case but it is very much possible. The reason for this is because credit information companies often look at a credit card as an open line of credit, and the cancellation of the card means that the credit line is no longer available. This will increase the Credit Utilisation Ratio of the person, which the CICs will see as a negative thing, and hence the credit score can drop by a few points.