What are the important things you need to do when closing a credit card?

If you want to cancel the credit card, you can do it either by calling the customer care number or if you want, you can also put in a request online.

There are a number of factors that you need to consider when closing a credit card and if you are interested to know about it in details, you can go through the points mentioned below:

  • You will first have to remove the standing instructions if any

There are times when the cardholder instructs the bank to make regular payments from the account. These standing instructions might be for EMIs, utility bills, subscriptions, etc. Therefore, before you close a credit card, make sure that you remove all the standing instructions.

  • It is important to repay the amount

At the time of closing the credit card, it is important for you to ensure that you clear out all the dues that are there in your account. If there are pending charges on the credit card, you will not be able to close it. In case there are any pending charges on it then there would be late payments and interests charged on your account. Moreover, your credit score will also get affected which is definitely not a very good thing. In case there are certain existing loans or EMIs on the credit card, then it is necessary for you to pay out whatever the outstanding amount is and you will also have to pay the additional charges if there is any.

  • You will have to redeem reward points

If you have already made up your mind to close the credit card account, then it is necessary for you to check out the rewards that are there. You can either redeem them in the form of coupons, cash backs, products, discounts, etc. Often, people do not care about the number of points they have accumulated. But if you check it thoroughly, you will realize that you are worth a lot of prizes and it is not worth missing them out.

When you decide to close your credit card, do follow the instructions given above, it will surely benefit you.

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