By Priyanka Sambhav
In these times of cash-crunch, you want to cut your spending and cut your credit card out of your life too. But letting go of your credit card is not that easy. How you wished that you stop spending from your credit card and it stops billing and it is over! It is not a cakewalk and you need to follow a procedure to get rid of your credit card. However, there is no standard procedure to do the same but you need to diligently follow a few steps.
First and foremost you should know that when you decide to close your credit card it will impact your credit score. The payments that you make toward the credit card due reflects on your credit behaviour. If you have been responsibly paying your dues it adds to your credit score. Once you cancel the card this stream which was helping with a good score will be closed too. But you are sure and you want to banish the card from your life then you must follow these 6 steps to close your credit card:
1. Call the customer care number of the card issuer bank : To begin the process of closing your credit card, speak to the customer care get all the details regarding all the dues. Must find out if requesting them over the phone is enough. Initiate the request with customer care.
2. Pay off any balance or redeem your rewards: While closing your card or applying to cancel make sure you don’t make any further transaction and all your bills are paid beforehand. While talking to your customer representative, confirm that your credit card balance is zero. Don’t make an assumption of having zero balance because at times interest is being levied on delay payment and interest on outstanding should also be taken into account. In case of any rewards that have been credited to your account, redeem them.
3. Be firm and don’t change your mind: Bank representative will try to convince you to keep the card. May give you some extra clauses for closure that may look like a hassle or entice you with an additional benefit. Don’t fall for the trap it’s your right to cancel the card whenever you want.
4. Send a letter: Just placing a call request with customer care will not be enough. The consumer must place a written request for cancellation of the card. The letter should include your name, address, phone number and account number details, specify your credit report in case to avoid any hindrance and clearly mention you are looking to “close your credit card”. Send the mail from the verified account where return receipts are applicable.
5. Confirm the Cancellation: Check your credit report, and sit tight. You will receive a mail from your bank stating facts and a copy of your credit report marked as “closed”. After this step, your account shall be closed and you shouldn’t worry at all, in case you find it still open repeat the process. You must ensure that you have written response from your bank that your card is closed.
6. Dispose of your card: After your cancellation process and making sure your card has been completely closed, dispose of your card. Don’t just through it somewhere rather cut it through scissors in the small pieces where nobody could be able to access your CVV number, expiration date or your signatures.
Hope that these six steps give you an understanding of the procedure that you need to follow. Be careful I have seen lots of people who thought that they have closed their credit card and were slapped with hefty annual maintenance and interest or penalty. Because the card was not closed completely so getting written confirmation from the bank is of utmost importance.
