How to Close or Cancel a Credit Card: Step-by-Step Guide
Closing or canceling a credit card correctly is crucial to avoid unwanted charges, financial complications, or damage to your credit score. Follow these straightforward steps to close your credit card safely and securely.
Step 1: Evaluate Your Financial Situation
Before initiating closure, assess why you want to close the card—whether it is due to high fees, inactivity, or switching cards. Understanding your financial needs helps you plan the closure better.
Step 2: Redeem All Rewards and Benefits
If your credit card offers reward points, cashback, or other benefits, redeem them before closure as these are typically forfeited once the account is closed.
Step 3: Clear All Outstanding Dues
Ensure your credit card balance is fully paid off. You cannot close the card if there are outstanding dues remaining. Pay the balance through online banking, app, or bank branch.
Step 4: Contact Customer Support
Call your card issuer’s customer care number and inform them of your intent to close the credit card. Follow their instructions and confirm if any forms or documentation are required.
Step 5: Submit a Formal Request for Closure
Many banks require a written request or a credit card closure letter. Include your full name, address, card number (last four digits), and explicitly mention your request to close the card.
Step 6: Obtain Written Confirmation
After your request is processed, ask the bank to provide a written confirmation or closure letter stating that your credit card account is closed with no dues pending. Keep this document for your records.
Step 7: Destroy Your Credit Card
Once confirmed, cut your card into several pieces, destroying the chip and magnetic strip, to prevent fraud or misuse.
Step 8: Monitor Your Credit Report
Check your credit report within 30 to 60 days to ensure your card is reported as “closed” and to verify there are no errors affecting your credit score.
Frequently Asked Questions
Can I close my credit card if it has an outstanding balance?
No. All outstanding balances must be fully paid before you request to close the card.
Will closing my credit card affect my credit score?
Yes, closing a card can impact your credit utilization ratio and credit history length, possibly lowering your credit score temporarily.
Do I need to send a written letter to close my credit card?
Many banks require a written request or email confirmation, but some allow online or telephonic closure.
How long does it take to close a credit card account?
Usually, closure takes a few days to a few weeks depending on the bank after all dues are cleared and the closure request is processed.
What if I have automatic payments linked to the credit card?
Update your payment methods for subscriptions or bills before closing the card to avoid failed payments.
Is it better to keep an old credit card active or close it?
Keeping old cards active helps build credit history and maintain credit limits, but unused cards with fees can be closed strategically.
Published on: July 23, 2025
Published by: PAVAN
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