How to Cancel or Close Credit Card – Format and Helpline Number
Credit card users spend 40 times more than debit card users, as per RBI data. Having a credit card has its perks too. It enables shoppers to make purchases on credit and also allows them to maintain a good credit score. But if you have too many credit cards or are paying high annual maintenance charges, closing your credit card would be a smart move.
How to Close Your Credit Card?
There are multiple methods you can use to cancel your credit card:
1. Written Applications
- Step 1: Write your request to close the credit card with all the necessary details about the card to your card issuing company.
- Step 2: You will receive an application form. Fill it out with all the necessary details
- Step 3: Submit this request via post to your issuer.
2. Email
- Step 1: Get the email address of the issuer from their official website. Or, you may also email the credit card agent.
- Step 2: Share your personal details, credit card number, registered mobile number, etc.
3. Call Customer Care
- Step 1: Get in touch with customer care support through the helpline number
- Step 2: Follow the instructions you receive from customer care support to place a credit card cancellation request.
4. Branch Visit
- Step 1: Visit the nearest branch of your credit card issuer.
- Step 2: Follow the process of cancelling your credit card as per the bank instructions.
Also Read
Application Format to Close Credit Card
You can submit an application for credit card cancellation using the following format:
To
The Manager,
Name of the bank,
Name of the Branch,
Bank Location.
Subject: Request for credit card cancellation.
Greetings, Sir/Madame
I, (your name), am a credit card holder with your bank, with Credit Card No. 456712345678XXXX, which is linked to my savings bank account, Account No. 345678XXXX45.
I’ve decided to cancel my credit card because I’m not using it for personal reasons. I would like you to acknowledge my request and cancel my credit card immediately.
Please take note that I have paid off all of my credit card debts and have a zero balance on my credit card.
Please close my credit card or notify me if any additional information is required.
Thanking you,
Yours faithfully,
(Your name)
Side Note : Write such a letter/application on a plain A4 sized sheet and then submit it to the concerned authorities.
Details to be Included in the Credit Card Cancelation Request
When submitting your request to cancel your credit card, you must include the following information:
- Name of the card: Write it exactly as it appears on the card, for example, platinum card, mastercard, and so on.
- Name of the card holder: Fill in the name exactly as it appears on the card.
- Card No: Enter the credit card number here.
- Expiry date: Include the expiry date in the format dd/mm/yyyy.
Reasons to Close Your Credit Card
- High annual fees: Credit card company might change its policies and increase the annual fee. No annual fee credit cards could later levy a charge. A smart move would be to close the credit card.
- Control Spending: Some lose control of spending habits. Closing a credit card could be a wise decision to stop excessive spending and manage your finances better.
Customer Care Numbers to Cancel a Credit Card for Top Credit Card Issuers
| Banks | Customer Care Number |
| State Bank of India (SBI) | 1800 180 1290 |
| Axis Bank | 1800 209 5577 |
| HSBC | 1860 500 2277 |
| Kotak Mahindra Bank | 1860 266 2666 |
| YES Bank | 1800 103 6000 |
| Citi Bank | 1860 210 2484 |
| American Express | 1800 419 1092 |
| Bank of Baroda | 1800 225 100 |
| IndusInd Bank | 1860 500 5004 |
| IDBI Bank | 1800 200 1947 |
| Bank of India | 1800 220 229/ 1800 103 1906 |
| RBL Bank | 1800 121 9050 |
| Corporation Bank | 1800 22 6606 |
| HDFC | 1800 266 4332 |
Advantages and Disadvantages of Closing a Credit Card.
| Advantages | Disadvantages |
| You can avoid unnecessary spending. | Closing a credit will lead to a drop in your credit score |
| To decrease your overall debt and improve your financial stability | You lost your rewards, points and other benefits |
| Since, unused credit card can still be hacked,by closing your credit card, you can prevent identity theft | It erases all your credit card history |
Things to Consider When Closing a Credit Card
When you initiate the process to cancel a credit card, there are certain things you need to keep in mind:
1. Clear the Outstanding Amount on the Credit Card
Clearing the outstanding balance is a mandatory requirement to close a credit card. It would be impossible to raise a cancellation request for a credit card without clearing your dues and paying any penalties that may be due.
2. Read All the Policies Related to Closing a Credit Card
Closing procedures might vary based on the credit card issuer. Reading the procedure on how to deactivate the credit card can help you avoid all the extra charges and penalties that might be levied due to complications.
3. Claim the Rewards Accrued on the Card
Credit card companies reward cardholders with reward points when they use their credit card to make purchases. Ensure that you use all your points and avail all monetary benefits before you close your credit card. This will help you get the most value out of the money you have spent.
4. Cancel All Automatic Bill Transfers and Payments
You might have to pay additional fees to your credit card issuer in case you forget to cancel auto payments on the credit card. Contact your bank and revoke any bank mandates you may have signed up for before you close your credit card.
5. Verify There Are No Last-minute Charges
The final statement before filing the closure application of the credit card must be carefully studied. Keep an eye out for any last-minute charges. You must pay off all the necessary fees before closing a credit card.
6. Retrieve the Exact Date of the Credit Card Closure
Following up with your credit card issuer to find out the exact date of closure of your card after you raise a cancellation request is important. It helps you eliminate the extra charges or late fees that may be levied on your account.
7. Obtain a Written Confirmation From the Issuer Stating That the Credit Card is Closed
Keeping track of all the activities after raising a cancellation request is important to avoid unnecessary charges. Receiving a written confirmation regarding card closure is an important document.
8. Do Not Cancel a Credit Card While Applying for a Loan
Cancelling a credit card just when you decide to apply for a loan can affect your credit score. As a result, the lender may also increase the interest rate on the loan being offered to you.
9. Add-on Credit Cards Get Cancelled
All credit cards linked to the one being cancelled create an automatic cancellation of all linked and supplementary cards.
10. No Balance Transfer Option
You will not be able to transfer your balance between the cards in case of closing or cancellation of a credit card.
Is it Better to Close Unused Credit Cards
Deciding whether or not to close unused credit cards can be a tricky decision, and it ultimately depends on your individual financial situation, however let’s take a look at the points below :
- Many credit card experts suggest keeping unused credit cards open because closing them can harm your credit score.
- Your credit score is made up of five components: new credit, credit utilisation, credit history length, outstanding balance, and credit mix. Your unused credit card has a direct impact on the length of your credit history and credit utilisation.
- If you’ve had a credit card for about 2-3 years, it might be a bad idea to close it. However, if you only had the card for a few months, closing it will not have a significant impact on your credit score. An unused credit card retains a significant credit limit, improving your credit utilisation ratio and credit score.
Final Word
Cancelling your credit card is easy. It can be done offline or online. Just follow the process mentioned by the credit card company. Ensure that you read the terms and conditions carefully and clear all dues before closing your credit card. This would help you avoid penalties and extra charges. Also, do not forget to get a written confirmation from the issuer that your credit card is closed.
FAQs
Yes, you are allowed to close a credit card even after receiving approval. However, opening a credit card creates a hard inquiry on your credit report. If you close a credit card after immediately opening it and then reopen another credit card, it triggers two hard inquiries on your credit report within a short time. Eventually, it leads to a decline in your credit score.
The credit score is only impacted if the procedures and balances are not paid off in time. There are methods of cancelling credit cards without hurting the credit score. Consequently, you can cancel your credit without causing damage to your credit score. However, the key is to pay off all credit card balances, instead of just the one you’re closing.
The exact period is not defined. If a cardholder requests that a credit card be closed, the credit card issuer must honour the request within seven working days, provided all dues have been paid. The guideline has been issued by the Reserve Bank of India (RBI).
Yes, students can apply for credit cards, provided they meet the eligibility criteria. If you are a student and you want to avail a credit card, you must be a minimum of 18 years of age. Furthermore, you should be enrolled in a college or university and produce the documents as required by the issuer to complete the process.
No. You can apply for a new credit card, although you have closed the previous one. Furthermore, you can also re-apply for the same credit card as a new account in the future.
Closing your credit card can potentially hurt your credit score. However, in order to avoid this, you can settle all your credit card accounts, and not just the account you’re closing.
Yes, depending on the facilities provided by your credit card issuer, online cancellation of credit cards can be done by email or on your bank’s website.
You can cancel your credit card anytime you want. All you have to do is submit an application to your credit card issuer and wait for confirmation.
You can block your credit card by logging into your bank’s website or mobile application and submitting a request for the same.
