Generally, it is advised by financial experts to not cancel old credit cards since they especially aid in developing the CIBIL score of its users. With nearly 50 million credit card users, it is understandable that a section of customers looks to change their card from one institution to another for additional benefits.
Under such circumstances, it is not enough to just understand how to cancel a credit card. Users must also understand the different impacts of cancellation as well and how to benefit even if the need be to cancel a credit card.
Vital tips to keep in mind before cancelling a credit card
The numerous tips that an individual should keep in mind while cancelling their credit card are discussed below.
- Cancel automatic bill payments: While cancelling a credit card, users must keep it in mind to cancel all automatic bill payments. Under normal circumstances, cards like Bajaj Finserv RBL Bank SuperCard do not deduct any amount once they are cancelled. Nevertheless, ensuring this cancellation removes any chance of bounced payments or debt accumulation.
- CIBIL score: Cancelling a credit card, especially if it has been maintained properly for years, can immediately impact the CIBIL score negatively. While one can use a credit card to improve their credit score, cancelling the card removes the credit history and depreciates the score. This can impact future applications for different lines of credit.
- Written statement: Once the account is closed by a financial institution, users should make it a point to get a statement declaring the same. Such a statement is usually issued by the financial institution and sent directly via email. While considering how to cancel a credit card, users should consider this a vital step in the completion of the procedures.
- Avail all rewards: Numerous reward points are accumulated on the use of credit cards. Users should learn how to redeem their credit card reward points and make it a point to use all the accumulated points. Effectively, this can immensely reduce the overall expenditure.
Different procedures for cancellation
While understanding how to cancel a credit card, users should be assured of multiple methods to suit their specific habits. These different procedures for cancellation are discussed below and users can avail the most convenient method for themselves.
- Contacting customer care: This is one of the easiest methods to cancel a credit card. Once the customer care is contacted, executives from the card issuer get in touch with the concerned user and direct him or her over further steps.
- Submitting a written request: A safe and secure method, the only downside to this method is that it is often quite time-consuming.
- Sending an email: Users can also send an email to the official website of their financial institution requesting for cancellation.
- Online request: While considering how to cancel a credit card, applying for it online via a web portal or app is a secure method. This method is especially convenient for customers since it offers easy access at any time.
In the event that a user wants to cancel his or her old credit card to avail a new one with better features, financial institutions offer an easy application method for this plastic money. Bajaj Finserv even provides pre-approved offers that make availing credit cards quick and easy. Pre-approved offers are available on numerous financial products including credit cards, home loans, personal loans, business loans, etc. You can check your pre-approved offer by providing your name and phone number.
Credit cards are vital financial tools which are necessary in today’s world. Consequently, under most circumstances, anyone learning how to cancel a credit card intends to apply for a new one. It is crucial for such users to compare different credit cards before finalizing on one. Additionally, they should also learn how to use credit cards wisely to maximize the rewards while minimizing on expenses.
