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A secured credit card is different from unsecured credit cards and debit cards. These cards need the cardholders to make cash deposits that equate the credit limits. If you close many cards at once, it will have a negative impact on your credit score. It is advisable to keep continuing with the old credit cards and close the one that has been opened recently.
How to Close a Secured Credit Card Through Creditseva
Opening a new credit card account can also be a reason to close the secured credit card account. The finest process to close a secured credit card account in the simplest manner without any difficulty can be done by taking the help of 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.
Steps To Close a Secured Credit Card
- You need to contact your lender by taking the customer care number that is mentioned at the reverse side of your credit card.
- The next step is to gather the amount that the lender needs to give back to you while closing.
- Cut your secured credit card into two pieces.
Points to Remember While Closing a Secured Credit Card
There are lists of few points that have to be kept in mind when you are closing your secured credit card account.
- Primarily you need to mention it specifically to the bank that you want to close the secured credit card account. You can also specify that you are not willing to negotiate for not closing the account if the lender insists that you continue the account rather than closing it.
- It is advisable not to leave any amount outstanding on your card. In case some amount has been left outstanding by any chance, you should make the entire payment before the closure date arrives
- If you are unable to pay the balance amount completely, you will have to pay some charges to the bank. After completely paying the outstanding balance, you can close your account.
- It is required to make a note of the details of your call for the account closure. You need to keep a record of the time, date of your call, the person you had spoken to and the response given by that person to you with regard to the closure of the card.
- It is important to ask the lender about when and how the deposit amount will be given back.
- You need to stay assured that the bank has your updated current address, contact number and email id so that there is no delay in receiving the deposit account.
- If you haven’t received the deposit at the date that has been told to you by the bank, you should call the bank and ask them at which date exactly you would be receiving it.
- After you have received the deposit, it is confirmed that the secured card account has been closed permanently. You should destroy the card so that you don’t use it by mistake.
- Prior to closing your secured credit card, you should surely rebuild your credit score in such a way that you will be able to borrow with the help of unsecured credit cards in future.
- If your credit score is below the appropriate level, you need to maintain your secured card for some more time before switching for a closure. It is also important that you maintain a good credit score for your secured credit card before you are planning to close an unsecured credit card.
- See to it that you close those secured credit cards that have lower credit limits and not higher credit limits.
- Prior to closing a secure credit card, you should have a look at your credit report and analyze how it will affect your credit score.
Secure Credit Card Closure FAQs:
1. If I have an account linked with Credit Card, is it impossible to close that account while maintaining the credit card individually?
In Order to close this account, you need to de-link the credit card from your account by going to the bank and submitting the request for delinking.
2. What happens if I don’t close my secured credit card?
If you don’t close your secured credit card, you’ll continue paying higher fees that come with the card. You will receive back your deposit while switching to a secured credit card.
3. How much time does it take to receive the deposit on closing a secured credit card account?
You will receive your deposit back in 10-20 days.
4. Do credit card companies close accounts based on inactivity?
Yes, sometimes the credit card companies close the secured credit card accounts based on inactivity.
5. How can I reactivate my secured credit card that has been closed?
Reactivation happens in a rare case wherein you have requested for closing the secured credit card for reasons like travel etc. In such a case, there is no assurance that you will obtain the same credit limit as you obtained previously.
6. Can opening a secured credit card account and closing it before the end of the year hurt your credit score?
Initially your credit score will go down, but later on it will be fine. If you are one among the persons who have a good credit, there will be a negligible impact on your credit card as well as credit score.
7. If I close a secured credit card, will I get my deposit back?
Yes, you will receive your deposit back in 1-3 weeks. You will get your deposit back. The time frame depends on the bank.
8. What do I do if I have an inactive secured credit card that too with a high balance?
If you have a secured credit card with a high balance, it is better to cut it rather than closing it. By doing this, your credit history will remain unchanged and you can also avoid the accumulation of more and extra charges on the secured credit card account.
9. Is closing a secured credit card better or bad?
Closing a secured credit card has proven to be more bad than better. This is so because closing this account decreases the credit score and increases the balance ratio.
- Loan Closure
- Debit Card Closure
- Credit Card Closure
- Secured Credit Card Closure
- Salary Account Closure
- Savings Account Closure
- Redeem Mutual Fund Units
- Close Fixed Deposit