How to Close Credit Card?: If you use a credit card, it means that you will be aware of the annual fees that you need to pay for being a holder of the card. Thus, even if you simply stop using the credit card, you will still be charged that annual fee. The same also counts for if you merely destroy or cut up your credit card (which is a practise that most of us partake in once we finish using a card) – the fee will still be charged to you. Now, the reason behind this is that unless you have your credit card closed by the bank that issued it to you, it will still remain on your account. That’s right – you have to get your credit card account closed, and not rely on it going out of use when you stop using it. Unfortunately, this process is not as simple as that.
How to Effectively Close Your Credit Card
What you need to know about effectively closing your credit card is that it does not automatically happen when you destroy your credit card or stop using that. Even if there is no physical card left, you are still a cardholder until and unless you inform the bank that you would like to close your credit card. There is a process that goes behind credit card closure, which will be thoroughly explained to you.
In general, different banks follow different procedures to close a credit card account. Let’s take a look at the process for credit card closing in the main banks in India, which are:
- State Bank of India (SBI)
- HDFC Bank
- HSBC Bank
- Axis Bank
- ICICI Bank
- IndusInd Bank
- Kotak Mahindra Bank
These are the banks whose credit card closure processes we will look at. For information about other banks, please check their respective websites to find the process listed out.
Cancelling a State Bank of India (SBI) Credit Card
SBI is the largest bank in India and there are 2 ways in which you can cancel your credit card here – you can either write to the bank or you can call the bank helpline number.
- Write a letter mentioning the following things:
- Your details (full name, address and contact information)
- Credit card number
- That you want to cancel your credit card
- DO NOT mention CVV and PIN.
- Mail the letter to this address: SBI Card, PO-Bag 28, GPO, New Delhi, 110001.
- Cut your credit card which you have requested cancellation for, diagonally.
- SBI will send you a letter in which they confirm the date that your card will be cancelled.
Via Phone Call
- Call the number 1860-180-1290 and give them your credit card number, name, and other details the SBI representative will ask you, and of course, mention that you wish to cancel your credit card.
- The representative will give you a reference number. Please note down this number and keep it with you carefully.
- Once again, SBI will send you a letter confirming the date of cancellation for your credit card.
Cancelling an HDFC Bank Credit Card
The process for closing an HDFC Bank credit card is fairly simple – here it is:
- Download the Credit Card Closure Form from here.
- Print out the form and fill it in with the relevant details.
- DO NOT put details like PIN and CVV (it does not ask for these details in any case).
- Cut up the credit card you wish to cancel into small pieces and put the filled-in form and the cut-up credit card into a single envelope, and mail it to this address: The Manager, HDFC Bank Credit Cards Division, PO Box 8654, Thiruvanmiyur, Chennai, Tamil Nadu, 600041.
- Within 7-10 days, your request for closure will be processed.
Cancelling an HSBC Bank Credit Card
There are three ways in which you can cancel your HSBC Bank credit card:
- In Writing: You may go into any branch of HSBC Bank and put in a written request for the closure of your credit card account.
- Online: Closing your credit card remotely is also possible. All you have to do is sign into the HSBC online portal with your registered user ID and password and then submit the credit card closure request.
- Over the Phone: You call up either 1800-267-3456 or 1800-121-2208 and provide your full name and credit card number, and tell the HSBC representative that you would like to close your credit card.
- You are required to cut up your credit card into pieces after sending in your request for cancellation through either of the 3 available methods.
Cancelling an Axis Bank Credit Card
Either of the following processes can be used to cancel a credit card issued to you from Axis Bank:
- In Writing: You may write to either firstname.lastname@example.org or email@example.com and request the closure of your credit card by providing your details, such as your name, address, credit card number, etc. DO NOT share your CVV or PIN.
- Via Phone Call: You may call either 1800-209-5577, 1800-233-5577 or 1800-103-5577 to put in a request for the cancellation of your credit card.
Cancelling an ICICI Bank Credit Card
Here is the process through which you can cancel your ICICI credit card:
- Put in a request for cancellation via ICICI online banking.
- This will ask for your credit card number, contact number, email address, the reason for cancellation, the city in which you live, and the details of any add-on credit cards to the main credit card.
- Within 3-5 business days after you put in your request for cancellation of your ICICI credit card, a representative from the bank will call you on your provided contact number to confirm that you’d like to cancel your credit card.
- Once confirmed, within the next 7 business days, your credit card will be closed.
- If you are unreachable, i.e. the representative has tried to contact you but you have been unresponsive or unavailable, your credit card will be closed anyway.
Cancelling an IndusInd Bank Credit Card
There are two ways to close your IndusInd Bank credit card, which are listed as follows:
- In-Person: You may head to an IndusInd Bank branch that is nearest to you and put in a request for the termination of your card. You will receive confirmation that your request is being processed by the bank in the next few days.
- Via Phone Call: You may call up the IndusInd helpline number, 1860-267-7777, provide the relevant details to the bank representative on the phone, and your request for termination of your card will be processed within the next few days.
- Cut your credit card into pieces once you have put in the termination request.
Cancelling a Kotak Mahindra Bank Credit Card
Use any of the following processes to close your Kotak Mahindra Bank credit card:
- Via Phone Call: You can call the Kotak Mahindra Bank customer care number, which is 1860-266-0811 from where on, the bank representative will guide you as to how you should go about the same.
- In Writing: Send a letter to any of the bank branches of Kotak Mahindra Bank stating your name, address, credit card number, and that you would like to close your credit card. After this, the process will be taken over by the bank itself and your card will be cancelled.
- Cut your card diagonally once you have put in your request for cancellation of your credit card.
Things to Know and Do Before Closing Your Credit Card
Things to do before closing your credit card:
- Redeem your reward points which you will have accumulated over time and can be used to buy a variety of goods and services. This is accredited money that may go to waste if you do not first redeem your points.
- Clear all your outstanding payments. This is necessary before the cancellation of the request, and if not done, the bank can straight deny or reject your request (that is if you do not clear your outstanding payment even after repeated requests from the bank).
- Cancel any automatic payments which are linked to your credit card to prevent the delay of your cancellation process.
- Check your credit statement just to confirm that everything is in order and there are no inconsistencies in the statement.
Things to know before closing your credit card:
- Know that when you close your credit card, if there are any add-on credit cards linked with yours, those will also be cancelled. This is important because getting another credit card is not an easy job.
- Another important thing to know before closing your credit card is that doing so can negatively impact your credit score. This is because while you have a credit card, your credit capacity is higher, and it reduces when you cancel a credit card, which is seen at the bureau of credit as a reduction in your spending capacity or an increase in your expenditure. Be sure to check your credit report once your credit card has been cancelled.
- The bank usually gives you a small window between the cancellation of your credit card and the time given to you to redeem your reward points. After this window, the points will lapse and the bank cannot be held responsible.
Conclusion on How to Close Credit Card?
All in all, it is important to cancel a credit card rather than just stop using it altogether. There is a proper process that goes behind the cancellation of a credit card. Different banks use different processes to cancel credit cards, so be sure to check the methods mentioned above. If your bank has not been mentioned on this page, be sure to go to the website of your bank to check how to go about the closure of your credit card.
Some things to keep in mind before closing your credit card include checking your credit statement, clearing all your outstanding payments, redeeming all your reward points before they lapse, and cancelling any automatic payments linked to this credit card. Also, you should be aware that there is a specific window given by the bank to redeem your points before they lapse. Also, any add-on credit cards you may have will be cancelled when you cancel the primary one. Lastly, you must check your credit report after your cancellation goes through to see how your credit score has been impacted.