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How to Go About a Close Credit Card Application in India

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Created on
April 26, 2023


What’s Inside

Using a credit card offers immense convenience while making a purchase or paying bills. However, you often end up with one too many cards. And if you are not cautious with your spending, or manage the balances tactfully, things can go out of hand pretty quickly. Closing a few cards can help you get hold of your financial situation better, and for that, you’ll need better understanding about a ‘close credit card application’.

You may also choose to close a credit card if it charges annual fees, especially if you get a card with lesser or no annual charges. No matter the reason, it is important to know how to close a credit card. Go through this post to find out.

Factors for Closing a Credit Card

Before opting to draft your credit card close application, there are a few things you must know. They are as follows:

  • Usability: The first thing you need to consider when you want to close credit card is whether it is useful to you. If you do not benefit from using it any longer and rarely take it out, it is best to close it.
  • Pending bills: Next, users must pay off all pending bills on the card before getting the card cancelled, closed, or deactivated.
  • Reward points: You may also want to check the availability of any reward points on the card. It is best to utilise and exhaust your accumulated reward points before closing the card. Or else, they will be obsolete once the card is deactivated.

Once you have the above factors covered, make sure to not continue making purchases using the card you want to close. If you keep purchasing with the card, banks may refuse your credit card close application.

Tips to Close Credit Card

Follow the steps below to close your card:

  • Get in touch with the customer care of your card-issuing lender.
  • Write a formal credit card close application
  • Request for online credit card cancellation.

Note: Always mention the credit card’s name, such as Platinum, Signature, etc. in the application along with the cardholder’s name.


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In addition, the card also offers free access to lounges, lower forex fees, and spending insights to help build financial discipline. If you have been looking for a single card for all your requirements, Fi’s 5% card is the right choice.

Frequently Asked Questions

1. Is it bad to cancel a credit card?

It is not a bad thing to close credit card. However, it can have a direct impact on your credit score and also increase your credit utilisation ratio. So, you need to refrain from using the card for a while before you submit the credit card close application.

2. What happens if you cancel a credit card with a balance?

If you close a credit card with an outstanding balance, you still need to pay off the debt. Even though you will be not able to use the card, the remaining balance will continue to accrue interest. So, the best thing to do is to clear all debts before submitting the credit card close application.

3. How can I permanently close my credit card?

You would need to contact the card issuing authority or financial lender, writing them a formal credit card close application letter. Once you get a confirmation from the issuing authority, you need to destroy your old card.

4. Is it better to cancel unused credit cards or keep them?

Ideally, keeping unused credit cards open is not a bad thing. Users can benefit from longer average credit history with the availability of a larger credit limit. However, if the annual fees seem too exorbitant for you, then it is better to close the credit accounts.


Fi Money is not a bank; it offers banking services through licensed partners and investment services through epiFi Wealth Pvt. Ltd. and its partners. This post is for information only and is not professional financial advice.
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