How to Deactivate Your Credit Card?

There are a few things to take care of when you decide to look into how to cancel a credit card.

The following steps may answer your questions of “how to cancel a credit card” but are not standardised, and they typically vary from one bank to another.

How to Cancel a Credit Card?

There are a few options to choose from on how to stop credit card usage listed below, and you can choose any of them:

1. Call Customer Service

You can contact your bank's customer service and ask them to revoke the credit card issued in your name. The bank will contact you to discuss the specifics of the credit card cancellation after the request has been made.

2. Send a Written Request

You can also cancel your credit card by filing an official application to the credit card issuer. You must include all the information about the credit card you wish to cancel and send it via regular mail or registered mail to the issuing authority.

3. Cancellation via Email

You can request to close a credit card by emailing the credit card company. If the option is offered, a specific email address where you can raise cancellation requests for credit cards will be given.

4. Submitting a Request Online

Customers can submit a credit card cancellation request online with some banks. You have to go to the bank's website, fill out a form, and then submit it to make an online request. A bank employee will call to confirm your cancellation request after submitting it.

Should Unused Credit Cards Be Cancelled?

You might have thought of how to deactivate a credit card if you haven't used it in a while.

• It’s advisable not to cancel unused credit cards because doing so could lower your credit score.
• Your credit score comprises five factors: credit utilisation, new credit, the length of your credit history, the balance due, and the mix of your credit. An unused credit card directly affects your credit history and how much credit you utilise.
• Closing a credit card might not be a good idea if you've had it for two to three years. On the other hand, if you had the card for a short while, closing it won't significantly impact your credit score.

Nevertheless, a credit card that is never used has a substantial credit limit sealed in, which raises your credit score and credit usage ratio. You should think about cancelling an unused credit card only if:

• The credit card offers zero benefits
• You have a disproportionately large number of credit card accounts
• The yearly charge for the credit card is excessively high

Things to Consider Before You Cancel A Credit Card

As previously stated, there is no set process for cancelling a credit card.

However, a few steps must be taken to understand how to close a credit card properly. You can lessen the negative impact of cancelling a credit card on your credit score by doing the items outlined below.

• Clear any outstanding amount.
• Read the closing guidelines & fines.
• Utilise any unused rewards.
• Stop automated transfers & bill payments.
• Make sure there aren't any unforeseen charges.
• Get the precise date the card will be revoked.
• Obtain written confirmation from the issuer.

Summing Up

The process of cancelling a credit card varies from institution to institution. It’s essential to remember the repercussions and effects it may have on your credit score before getting it cancelled. If you wish to cancel your credit card, you should inform the proper authorities and follow the entire process instead of taking matters into your own hands, like breaking the card, throwing it away, or losing it.

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Frequently Asked Questions

1. Does cancelling a credit card hurt your credit score?

Your credit score may be impacted if you close a credit card. However, you can lessen the impact by ensuring you adhere to all formalities.

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

A credit card that has a balance due cannot be closed. If you want to cancel your credit card, you are required to pay off any outstanding debt.

3. How do I cancel my credit card permanently?

To permanently cancel your credit card, contact your issuer and request account closure by calling the customer service number, sending a written or email request, or filling out an online form on their website.

4. How much does closing a credit card hurt your credit?

Cancelling a credit card may lower your credit score because it raises your credit utilization ratio. Closing the account itself is not a problem.

5. How to cancel a credit card?

To cancel a credit card, you can either call the customer care of the card issuer, send a written or e-mail request or submit an online form on the card issuer’s website.

6. Can we cancel credit card online?

You can cancel some credit cards online, but not all card issuers offer this option. You should check the card issuer’s website or contact them to find out if you can only cancel your credit card online.