Cancelling credit card the right way is very important. If not closed in the right way, you will keep receiving statements which can cost you. Individuals may want to cancel the credit card for reasons such as high cost, fewer benefits, multiple credit cards etc.
Most individuals are not aware of the procedure and they cut the card into pieces in order to cancel it. But this is the not the way to cancel the card. If not followed the correct way, your credit score can be hampered and it can cost you money.
Here are simple steps to cancel credit card in the correct way.
Look at the latest credit card statement. Check for the due amount and pay the entire amount. Make sure there is no interest, fee, and any charges are cleared before applying for cancellation. Bank will not close the account if there is any due in the account.
Check your cashback points and redeem the same in order to make the best use of the card before discarding it.
Call customer care of the card. The number will be usually mentioned in the credit card statement. Make sure you collect the request number so that you can follow up with the request.
To ensure, write a letter to the bank regarding the confirmation of closure of the account. Usually, banks will send the card closure confirmation to the mailing address available with the bank.
Once you receive the confirmation go ahead to cut the card into pieces.
Cancelling may impact your credit score as your over all credit limit will come down which can also give an indication that you are not able to pay the debt. However, it is always suggested to close the unused card with fewer benefits unless it is old with good credit history.
In case, if you want to close more than one credit card, it is better to go slow and do it gradually.