How to close a credit card the right way—A complete guide | Mint
Source: Live Mint
Closing or cancelling a credit card is a big financial decision which could impact your credit score and overall financial health. Should any of these motives apply-debt consolidation, avoidance of an annual fee, or general simplification-it is crucial to follow the proper procedure. Here we will describe the main steps to be taken while cancelling a credit card in such a way that their effects on the credit score are minimized.
Things to consider when cancelling your credit card
Before cancelling a credit card, keep the following in mind:
Ways to close/cancel a credit card
1) Through customer service
- To cancel your credit card, call the customer care unit of your bank.
- They will provide you with confirmation and further guidance on the necessary steps.
2) Through written request
- To start initiating closure, write to your credit card issuer requesting cancellation while including all relevant credit card information.
3) Through email
- Some banks allow cancellation of a credit card through e-mail.
- Be sure that your e-mail contains a request for cancellation, credit card information, and personal information.
4) Through online request
- Depending on the bank, one can usually close an account online.
- Log in to the bank’s website, fill in the required fields, and send in the request.
How may a credit card be closed without lowering credit scores?
Closing a credit card account can affect your credit score, so it is imperative that you approach this line of action with care.
In conclusion, cancelling a credit card is an important financial decision that should not be taken hastily. If this is done right, they can help control one’s spending and safeguard against penalties. However, the effects this decision would have on credit scores should be checked.
(Note: Using a credit card carries its own set of risks.)
