Want to close or cancel your credit card? Here's a step-by-step guide

Having a credit card is beneficial in many ways. However, at times, one can consider closing or canceling the card due to various factors. But one should keep in mind that closing a credit card is not as simple as cutting it in half. When you are considering canceling a card, it should be taken into account how the cancellation of your credit card will affect your credit score.

What is a credit card?

Credit cards are issued by banks to consumers with a fixed credit limit that allows them to conduct cashless transactions. The credit limit of the card is based on the consumer's credit score, history, and other things.

When to cancel a credit card?

There are several reasons why one will cancel a credit card, for example, when you are not using the card, when you have too many cards, switching brands, or due to hefty annual fees.

How can you cancel your credit card?

There are various ways to cancel your credit card, from contacting consumer service to submitting an online request. Let's look at them one by one:

Customer service: You can cancel your credit card by contacting the customer service of the Bank and financial institution that issued the bank, and requesting them to close or cancel your account.

Written request: You can send a written request to the card issuer for cancelling your credit card. The written request can be sent in the form of an application/letter to the manager of the respective bank/financial institution. The request must include the card details, such as the credit card number, holder's name, address, and contact information.

Via email: You can request to cancel or close your credit card by sending an email to the issuer. The mail must include card details, such as credit card number, holder's name, address, and contact information.

Online request: In some cases, banks or financial institutions, which have issued you the credit card, also allow customers to submit the request for cancellation online. To put in an online request for credit card cancellation, go to the official website of the financial institution, fill out the cancellation form and submit it.

Things to remember before closing or cancelling your credit card:

• You should clear the due amount on your credit card before closing it.
• Before closing your card, you should use or clear all your rewards points earned by purchases.
• You should remember to cancel all auto payments and transfers before closing the account.
• Before submitting the request for cancellation, check your last credit card statement to ensure that no last-minute charges appear.