How to Close a Credit Card?

Cancel a Credit Card by Calling Customer Care

You can call the credit card customer care of the respective bank and request them to cancel the credit card that is in your name. Once the request has been raised with customer care, the bank will get back to you and discuss the details for the cancellation of the credit card.

By Submitting a Written Request to the Credit Card Issuer

You can also close a credit card by sending a written request to the credit card issuer. You need to mention all the details regarding the credit card you want to cancel and send it to the authorities of the credit card issuer by ordinary post or registered post. You can get the postal address on the official website or by calling the customer care executives.

Sending an E-mail to Cancel the Credit Card

You can raise a request for closing a credit card by sending an e-mail to the credit card issuer. If the facility is available, you will find a dedicated e-mail address to which requests for the cancellation of credit cards can be sent. In the e-mail, you need to provide the details of the credit card that needs to be closed, your personal details, etc.

Submitting an Online Request for Closing the Credit Card

Some banks offer customers the option of raising a credit card cancellation request online. To raise an online request, you need to visit the bank’s website, fill up the form and submit the request. Once the request has been made, a representative of the bank will call to confirm the cancellation request.

Is it Better to Close Unused Credit Cards?

Experts advise against closing unused credit cards as it can harm your credit score. Your credit score has five components. Unused credit cards impact your credit history length and credit utilization.

If you have had a credit card for about 2-3 years, closing it might be a bad idea. Closing the card, though, will not have a major effect on your credit score if you owned it for a few months. An unused credit card retains a significant credit limit locked in, enhancing the credit utilisation ratio and your credit score. Here are a few circumstances when you should consider closing an unused credit card:

1. If the credit card does not provide any benefits.
2. When you have an excessive number of credit card accounts.
3. If the credit card’s annual fee is very high.

What are the Things to Consider When Cancelling a Credit Card?

There is no standard procedure for cancelling a credit card, but following certain guidelines can minimize damage to credit score. Note the points listed below:

• Clear the outstanding balance on the card: Before deciding to close the credit card, you need to clear the outstanding balance on the card. Without doing this, you cannot raise a request to cancel the credit card.
• Read about the closing procedures and possible penalties that you may need to pay: Read about the closing procedures that the credit card issuer might offer when it comes to cancelling a credit card. Doing this makes you aware of things which you might not have known such as penalties.
• Use up all the outstanding rewards that you may have on the card: When you use a credit card to purchase things, you end up earning reward points. These reward points need to be used up before deciding to close the credit card.
• Make sure to cancel automatic bill payments and transfers: Automatic bill payments and transfers need to be cancelled before closing the credit card. In case, you forget to do this, you might end up paying the fees associated with the card if the bank does not follow up on your cancellation request.
• Ensure that no last-minute charges pop up before cancelling the card: Check the last statement of the credit card properly to make sure that no last-minute charges show up. Pay off all the charges before deciding to close the credit card.
• Talk to the customer care executives and get the exact date when the card would be cancelled: When you raise a request for cancelling the credit card make sure to follow up with the credit card issuer and get the exact date on which the credit card will be cancelled. This way, you don’t pay any extra fees and charges.
• Get a written confirmation from the credit card issuer stating that the credit card was closed: This is very important because as mentioned earlier it helps to keep a tab as to when the credit card was closed by the issuer. So, make sure to get a written confirmation from the issuer.

Other Things to Keep in Mind

1. When a credit card is cancelled, any add-on credit cards linked to the card will also be automatically cancelled.
2. You would not be able to apply for a balance transfer to another bank once the request to cancel the credit card has been raised.

Customer Care Numbers to Cancel a Credit Card for Top Credit Card Issuers

How to Close a Credit Card without hurting the Credit Score?

Closing a credit card can hurt your credit score. That is why it is important to follow a process while cancelling it.

• Pay off your balance: To cancel your card, your balance must be paid in full. Otherwise, you'll need to keep it open until the balance is zero.
• Redeem any existing rewards: Any rewards points you earned while using your card will often vanish once you close a card. Depending on the card, you might be able to transfer your points to another card or cash-back rewards program. So enjoy those reward points before you cancel.
• Call the credit card company: To cancel your credit card, call the bank and talk to customer service. They may offer to keep your card open. Remember your reasons for closing your account. 

To officially cancel, call the number on the bank of your card and talk to someone from the credit card company or bank that issued that card. The customer service representative will most likely try to entice you with attractive offers to keep your card open. Stay strong, and remember your reasons for closing your account.

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