If you have too many credit cards, you won't be able to keep track of all of them. There are chances of you getting confused about payments due, annual maintenance, due dates and so on. Also, fraudsters can misuse your unused credit cards. To avoid unnecessary problems, it is advisable to close unused credit cards. If you have many credit cards you have to pay annual maintenance charges on all these cards, which is a huge waste of money. Many people instead of closing the credit card accounts, simply stop using the credit card or cut it into pieces. But, this is not enough to close the credit card account.
Closing the credit card involves a formal closure procedure which is very simple. In this blog, we will discuss how you can close your credit card and what are the things you must do, before and after closing your credit card.
Things to do before closing your credit card
Credit card companies offer you reward points for the spendings you make, using your credit card. You have to use these reward points before closing your credit card account. Once you close your credit card account, you won't be able to use your reward points. Some cards let you use reward points for paying off credit card bills.
Before placing a closure request, it is very important to pay off your outstanding dues on the credit card. In case you have spent on items using your credit card after the billing cycle, you have to pay it off in advance.
You have to request your bank or credit card Company to close your credit card account. You have to fill up a credit card closure form by providing the name of the cardholder, credit card number, and reason for closure. You should also place a request to delink the bank account which was linked for auto-payments of credit card dues. In case you have availed a loan using your credit card, it will be pre-closed after charging a penalty.
Now banks allow you to submit the closure requests through their respective apps, customer care call centres or through emails.
After you submit the request for closure of your credit card account, follow up with the credit card issuer and get confirmation, that the account has been closed. After getting this confirmation, destroy the card by cutting it into small pieces.
You can check your credit report a few months after closing your credit card account, to make sure that the line of credit has been closed. Your credit report gives the details of all lines of credit.