Saturday, December 5, 2020
How to Close a Credit Card: If you want to close a credit card, then do this important work first
Credit cards have become extremely common among the urban population. Credit cards serve as one of the major financial instruments to manage day-to-day expenses. In recent times credit cards have become one of the most common forms of payment in urban areas. One of the advantages of a credit card is that it enables you to pay for all types of purchases offline as well as online. Credit cards are easily available and many people have many credit cards available from various banks. People often spend more money due to having multiple credit cards. Many times users want to stop it. Any customer can close it.
Do this work before you close your credit card
1. Pay the amount: Give: First of all, make all the payments on time. Nothing remains outstanding. When you are closing your credit card, make sure that there is no outstanding balance on your credit card account. You cannot close a credit card account with pending charges. If you have any pending charges, they will pay interest and late payment penalty. This will make your credit score worse.
2. Consider the Credit Utilization Ratio: Closing a credit card increases your credit utilization ratio (CUR). For those who are not aware, CUR is the percentage of credit available that you are spending. If you have two cards with each spending a limit of Rs 1 lakh, you get a total limit of Rs 2 lakh.
3. Cash in Reward Points: Be sure to redeem your pending Reward Points before closing any credit card account. Most credit card companies offer reward points on transactions made through credit cards, which can be redeemed for cashback, discounts, coupons, products or services through your bank's marketing partners. Before closing your card make sure that you have redeemed all your points.
4. Follow up: As a credit card holder you need to know that banks and their employees have a lot of work to do. Because of this, your request to cancel your credit card should be done on time. Contact your bank and ensure that the credit card is canceled by the bank and no transactions are being done with the card. Don't forget to get your no-deuse certificate from the bank.