Want to Cancel your Credit Card? Here’s All You Need to Know!

As simple as it is to apply for a credit card, it is equally simple to cancel your credit card. While there can be various reasons for you to cancel your credit card, one of the most common reasons, where it is actually advised that you cancel your credit card is when you have too many of them. In such cases, it is better to cancel those credit cards that you don’t use too often.

While there is no harm in canceling your credit card, it is recommended that you do it right. If you have made up your mind to cancel your credit card, you must go through the process to do so first. Going through the right procedure will ensure that your credit score does not get affected by the act of canceling your credit card. Well, here’s a list of all the factors that affect your credit score.

Factors to Consider Before Canceling your Credit Card

Before you decide to cancel your credit card, it is important to make absolutely sure that you want to go ahead with it. The following points will help you make the right choice-

  • The first, most important thing to consider is whether you use the credit card that you are going to cancel. If you don’t use it often, and have multiple credit cards, then canceling your credit card is the right thing to do
  • Secondly, before you go on with canceling your credit card, you must ensure that all your credit card dues are clear, and there is no pending bill/loans to be paid on the credit card
  • Another important thing is to claim all your reward points on the particular credit card that you are going to close. Check all the unredeemed reward points and use them before raising the request to close/cancel your credit card. You can earn gift vouchers discounts or various other offers by claiming the rewards points
  • Once you have placed the request to cancel/close your credit card, it is strictly advised that you stop using the credit card that you are going to close. Even if you try to make a transaction, your bank/credit card issuer will revoke your request

How to Cancel a Credit Card?

You can cancel your credit card using either of the following methods-

  • Customer Care – You can contact your credit card issuer’s customer care service and ask them to place your credit card cancelation/closure request.
  • Written request – You can send a written request to your bank/credit card issuer in the form of an application/letter to the manager of your respective bank and request them to cancel/close your credit card account. In your application, you must ensure to include your credit card number, credit card holder’s name, address and contact details of the card holder.
  • Online request – You can also place a credit card cancelation request online on the bank’s official website. All you need to do is log in to the platform, and find the option to ‘Cancel/Close your credit card’. You will be asked to fill the credit card cancelation form and submit it on the portal. You might get a call from the bank’s executive staff to confirm your action post the submission of your request.

Credit Card Cancelation Format

You can use the following format to submit an application for canceling your credit card-

To

The Manager,

Bank Name,

Branch Name,

Bank Address.

Subject: Credit card cancellation request.

Dear Sir/Madam,

I, (your name), credit card holder of your bank with Credit Card No- 456712345678XXXX, which was linked to my savings bank account of Account No- 345678XXXX45.

Since I am not using my credit card due to certain personal reasons, I have decided to cancel it. I request you to acknowledge my request and cancel my credit card with immediate effect.

Kindly note that I have cleared all my credit card dues and have zero balance on my credit card.

Kindly close my credit card or let me know if any further information is required.

Thanking you,

Yours faithfully,

(Your name)

Note that you must write such a letter/application on a plain A4 sized sheet and then submit it to the concerned authorities.

Details to be Included in the Credit Card Cancelation Request

You must mandatorily include the following details while submitting the request for canceling your credit card-

  • Name of the card- Write as it appears in the card; for example- platinum card, mastercard etc.
  • Name of the card holder- Write the name as it appears in the card
  • Card No- Write the credit card number
  • Expiry date- Mention the expiry date in dd/mm/yyyy format

To Conclude:

Going through the process of canceling your credit card is as easy as it is to apply for a credit card. All you need to do is submit an application stating the details of your credit card and its associated account to the concerned authorities and you’ll be done. However, it is important to consider various factors such as claiming all your reward points, clearing your dues, etc. before going ahead with canceling your credit card.

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FAQs
How can I close/cancel my credit card?
You can easily close/cancel your credit card either by sending an application to the manager of your bank, by contacting the customer care of your bank or by visiting your bank’s online portal.
Will my credit score be affected if I close my credit card?
If you close your credit card using the right method, your credit score will not be affected at all.
What are the points to be considered before closing the credit card?
You must consider various points such as claiming all your reward points, clearing your dues, etc. before submitting the request to close your credit card.
What details should I include in my application to close the credit card?
You must mandatorily include the following details in your application to close the credit card-
  • Name of the card- Write as it appears in the card; for example- platinum card, mastercard etc.
  • Name of the card holder- Write the name as it appears in the card
  • Card No- Write the credit card number
  • Expiry date- Mention the expiry date in dd/mm/yyyy format
Will my credit score be affected if I close my credit card?
If you close your credit card using the right method, your credit score will not be affected at all.
What are the points to be considered before closing the credit card?
You must consider various points such as claiming all your reward points, clearing your dues, etc. before submitting the request to close your credit card.
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