Closing a credit card: With the increasing use of credit cards and the attractive offers from banks, many individuals may find themselves needing to close their credit cards.
This could be due to difficulties paying bills on time, high annual fees, or a desire to reduce the number of credit cards they have.
Methods for closing a credit card:
- Contact the customer service number of the bank that issued the credit card and request that the card be canceled.
- Please submit a request to the credit card issuer, who will then process the request through their internal channels to cancel the card.
- Some banks allow customers to apply for credit card cancellation via email.
- Certain banks offer online facilities for credit card cancellation.
Understanding RBI regulations: It’s crucial to know that the Reserve Bank of India mandates a seven-day processing time for credit card closure requests. This knowledge empowers you to avoid a daily fine of Rs. 500 for the bank or card issuing company.
Key considerations:
1. Ensure that there are no outstanding balances on the credit card when requesting its closure.
2. Be aware that closing a credit card can affect your credit score and potentially make it more challenging to obtain low-interest loans.
3. Familiarize yourself with the credit card cancellation procedure and be mindful of any penalties. For instance, some banks may charge a fee for early cancellation or if the card has outstanding balances.
4. It’s wise to utilize any accumulated reward points on the card before closing it to avoid loss. This responsible action ensures you get the most out of your credit card benefits.
5. Remember to deactivate or cancel any automatic bill payments or transfers associated with the card.