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Leaving credit card account open could the best for your credit but if you want to close your credit card account, there are certain important things that you need to keep in mind. Here in this article, we will provide all the essential things that you need to consider when canceling a credit card.
But first, have a look at the different methods of cancelling a credit card in the right manner
In order to close your credit card, you can call the customer care of the bank and request them to cancel your credit card. Once the request has been raised with the concerned department, the respective bank will get back to you & discuss the further process of cancelling the credit card.
You can close your credit card by submitting a written request to the credit card issuer. You will need to mention all of your credit card details and sent it to the credit card issuer authorities by registered post or ordinary post. Well, you can find the postal address either on the official websites or by calling the customer care representatives.
Some banks in the UAE provide the convenience to its customers of raising a credit card cancelling request online. In order to do the same, you need to visit the official website of the bank and then fill up the form by providing all the required details and submit the request. Once the request has been raised, the bank’s representative would call you back in order to confirm the credit card cancellation request.
You can also cancel your credit card by sending an email to the credit card provider. If this facility is available with the respective bank, you will find an email address to which request for cancelling a credit card can be sent. In that email, you will need to mention the details of your card including your personal details.
Now, let’s begin
So, if you have finally decided to cancel your credit card, there are certain things that you need to consider when cancelling a credit card. Following the things listed below helps you close your credit card in a right manner:
Before you cancel your credit card, make sure you pay off the outstanding balance on your card. Without clearing your outstanding balance, you can’t even raise a credit card cancelling the request. If you can’t afford to clear off your outstanding balance, you can also transfer the balance to another credit card (preferably the one with a low rate of interest).
Be sure you carefully read about the closing procedures that the credit card lender might offer you when it comes to cancelling a credit card. This will enable you to aware of less known things such as penalties that you might have to pay. And if you have opened your card recently, the bank might charge for the early closure.
When you cancel your credit card, you won’t be able to redeem those rewards that you have earned by spending on that card. So, before you decide to cancel your credit card, don’t forget to check your rewards balance and redeem them. Redeeming your rewards as a statement credit can also reduce your card’s outstanding balance. Use all of the outstanding rewards that you might have on your credit card.
Before you raise a credit card cancelling request, log on to the respective bank’s official websites and cancel automatic bill payments or transfers that you have set up to go toward your card. If, in case, you forget to do the same and let it be continuing, you might end up paying the fees that are associated with the credit card if the bank doesn’t follow up on your credit card cancellation request.
When you raise a credit card cancelling request, keep on taking the follow up with the credit card issuer’s customer care executives and get the exact date when your card will be cancelled. In this manner, you can avoid paying any extra fees & charges.
Before deciding to cancel your credit card, consider whether closing that credit card will affect your credit score. Cancelling a credit card does not expunge it from your credit report and also expunge any ‘payment history’ from your credit report. So, if you are wondering that closing a credit card can make the credit bureaus forget about your late payment record or poor payment history then you are wrong here. Any negative payment record will reflect around for 7 years.
It is advised that bring your credit card account back into the good standing so that the good payment record can be reflected in your credit score. And if you decide later to cancel your credit card, it will stick to the credit report for about ten years.
When you call to cancel your credit card, request that the credit card issuer send you a written confirmation letter for cancelling a credit card and the effective date of closure mentioned on it. Make sure you keep this letter along with you for future records.
If you’ve credit report done and you notice that this card that you have cancelled still shows up, you will then have a strong written proof that you raised the credit card cancelling request and the credit card company didn’t follow your request though.
Be aware that cancelling a credit card may hurt your credit score negatively. So, keep all the aforementioned things in mind when cancelling a credit card to take a safe and secure action.