All about closing credit cards!

Oct 10 2013, 14:46 IST
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The first most important thing to remember is that the bank will not cancel your card unless you have paid all dues. Reuters The first most important thing to remember is that the bank will not cancel your card unless you have paid all dues. Reuters
SummaryEnough canít be said on the diligent care one must take when handling a credit card!

BankBazaar.com

Enough canít be said on the diligent care one must take when handling a credit card! Sometimes, you may feel that a particular card is not of much use to you, or you may realise that you are holding several credit cards and many of them are not getting used. So you may wish to cancel your credit card. However, you may sometimes realize that despite taking the initiative to cancel the card, you continue to receive statements from the bank declaring that you have unpaid dues in your account. What is the reason behind this? It is possibly because the exact procedure has not been followed in cancelling the card.

Letís take the case of Satish who had applied for a credit card from ABC Bank about a year ago. 12 months after getting the card, Satish realised that he did not receive much benefits from the card, and it was simply an additional headache to manage. So he decided to cancel the card and adopted the following process while closing his credit card -

Step 1: Satish contacted the customer service desk of the bank by dialling the number given behind the card. He then found out what is the actual amount outstanding in the card.

Step 2: He made an online payment for this amount and cleared all dues in the card account. As the amount was small, he made the payment in one go. Sometimes, the amount outstanding is quite large for an individual to pay it at once. In such a case, make regular payments, either on a weekly or monthly basis and clear the dues. Note that if a monthly payment is made, you will still accrue interest on the balance, and the final payment should include all fees and charges. Satish kept a record of his payment as proof.

Step 3: On making a full payment of the outstanding balance, Satish contacted the customer service desk again and placed a request for cancellation of the card. He made a note of the date and time of the call, as well as the name of the representative who took down the request. Satish also got a request confirmation number, which will be the reference in all future correspondence on the request.

Step 4: Satish then wrote to the credit card company and sought verification that the account has been closed. He mentioned the details of his call

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