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It is very important to take proper precautions while handling your credit card. It often happens that you feel that one among all other cards you hold is not of great use to you now. It also happens that you comprehend you are holding too many cards. This is the time when you should opt for closing a credit card.
How to Close a Credit Card Through Creditseva
Usually, it so happens that borrowers think that closing a credit card account will enhance their credit score. But in reality that does not happen. The most convenient option to close a credit card account in an easy way without coming across any difficulties is utilising the Credit advisory services of Creditseva and stay creditworthy. You just need to sign up, fill in your basic details and receive detailed as well as holistic insights of your credit-related data and thus maintain, improve your credit score in an easy and simple manner.
Creditseva simplifies all the problems that could arise with respect to lending and borrowing. This in turn helps the individuals in acquiring the right knowledge about their loans, credit score, credit report and work up on improving as maintaining them in a healthy manner.
Things to Remember While Closing Your Credit Card Account
- It is very crucial to cut your card into pieces across the Chip and magnetic stripe after you have completed submitting the request for credit card closure.
- Another important check to make is on your credit score. This will explain how much damage has been caused by the closure of credit card to your credit score.
Steps Involved in Closing a Credit card
- Connect with the Bank: After taking the decision to close the credit card, you need to approach the bank and let them know that you have an intention of closing the card.
- Clearing off Unsettled Dues: The bank will proceed with closing your credit card account only after it is sure that there is no unsettled or outstanding balance left in your account.
- Set Your Priorities: Often it is seen, that banks have no intention of letting the credit card customers leave them by closing the credit card account. You will be offered cost effective schemes like lower interest rates etc. So it in your hands to not get convinced by the banks if they ask you not to close the account.
- Final Follow-Up: The final follow-up includes obtaining a written statement from the bank that you have paid all the dues to the bank and your credit card has been closed.
- Completion of Closure: The last step is to be executed by the borrower. After receiving a final confirmation from the bank, you need to damage the credit card.
Alternate Ways to Close a Credit Card account
Here are few ways you can follow when you are planning to close your Credit Card Account
- The first way is that you need to login to your bank account via Internet Banking. After you login, you will have to make a request.
- In case you are not willing to go for the internet banking way, you can select Phone Banking and call your bank’s customer care and register for closing the credit card.
- Suppose you are intending to personally go to the bank and get the closure done, you can write a request at any branch of your bank.
Sample Credit Card Cancellation Letter
Credit Card Company Name
City, State and Pin Code
Subject: Closing a Credit Card account
Respected Sir or Madam:
This is to inform you that I want to close the credit card account that I am holding with your bank at the earliest. Please close the following account in my name:
Name on the Card: _____________________
Account Number: __________________________
The balance was paid by me on the dates specified by you every month. Thus bringing my account balance to zero, leaving no balance outstanding. Please send me an acknowledgment letter after closing my account. Also, please confirm that it has been notified to all the related credit card bureaus that my account was closed upon my request.
If there are any dissimilarities between my records and yours, please contact me by mail at my email address below or by phone at my mobile number.
Credit Card Closure FAQs:
1. What should be done if there is some pending balance in your credit card account?
In case there is some balance due on your credit card, you should clear that balance by making a payment towards it. The payment can be made either in installments or at one go.
2. Does it have a negative impact on my credit score?
It has a negative impact on your credit score only when the credit card account is an old one and if you have pending dues in the account. If you have no dues pending, then there is no negative impact on your credit score.
3. When is the right time to close a credit card account?
There is actually no right time to close a credit card. But the most suitable condition for you to close your credit card accounts would be when you already have many cards and it is difficult to manage all of them. If you have to maintain numerous credit cards, you should opt for closing the one that is less used among the others.
4. What happens if the credit card account is not closed properly?
If you do not follow the proper steps in closing the card, there may be a situation when there is an outstanding balance on your card. For example: if you have not received a confirmation from the bank regarding the closure, you will be charged renewal fees even though you may have cut the card.
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