It's most likely that individuals always tend to keep more than one credit card. Either they are lured by the sales person or they get carried away by the points and other rewards that they might receive by way of another credit card.
This is because you have say a total credit of Rs 2 lakhs on four cards. By cancelling the same the amount of credit is reduced and so is your CIBIL score.
Cancelling Your Credit Card
Now, you should think twice before cancelling your credit card. In case you have decided to cancel the same, then you should make sure that you follow certain procedures to cancel your credit card.
To begin with make sure that you have intimated the bank, if there is an ECS involved with regards to regular payment for the credit card that you are planning to cancel.
Make sure that you have completed the payments on the said credit card and the balance outstanding is zero.
The ideal way to surrender the credit card would be physically visiting a bank branch. For example, if you have an IndusInd Bank credit Card you would do well by visit the branch.
Take an acknowledgement from the bank for the cancellation of your credit card. The best way forward would be to carry a letter stating that you wish to cancel the same and get it stamped from the bank.
Remember, that you should stop using your credit card a few months prior to deciding to cancel the same. Also remember that it is important to call up the bank's helpline and inform them of your decision to cancel the credit card.
It would also be advisable to cancel the credit card ahead of the annual payment charge or else the bank would levy an annual payment fees.
Another important point to note is that if you are making the final settlement, do so through net banking as you can get credit for the payment on the same day.