Credit cards seem to be simple but only the users know what are the things involved in it. It could be a bigger burden if you don’t understand the usage of the card. This makes few to shut down their credit card accounts. There could be many reasons associated with high-interest rates, don’t know how to use, not able to manage expenses, leaving the country and many more reasons which makes you close your credit card. Most of them think not using the credit card will automatically close the account, which is wrong. Even though you don’t use your credit card there would be some charges imposed on it and delaying the payments can reduce your credit score.
Check: Best Credit card in UAE
How to close a credit card account?
Closing your credit card account is effortless if you follow the steps involved in the closure properly. There are few things involved in closing your account
Check Credit card balance
This is the first thing you need to clear before you request the cancellation. Check your credit balance and if you are supposed to pay any, then clear the balance and then proceed further. Most of us forget to clear the existing bills. So make sure you clear the bills. If you can’t clear the bill amount then request the authorities to make your account dormant so that no transactions can be made using the card and you can clear the balance in installments as per the bank’s demand.
Also check: Balance transfer in UAE
Close other related cards
Credit card companies offer some supplementary cards for no cost with the primary card. Close the secondary cards as these are associated with the primary credit card. Deactivation of the primary card automatically deactivates the supplementary card.
Inform the customer service
After clearing the balance don’t miss to call the customer care from the registered mobile number and request them to close the account. Usually, account closure is a time taking process so ask them to stop the transactions, so that you won’t need to pay any extra cash on that account. Save the message received on the registered mobile number regarding the account closure.
Ask for a printed document
Once your bank authorities approve for closing the account, request them for a sanction letter about closing the account and check your credit score where you can get the details of the existing cards. This is very important because at times banks can miss out in deactivating your account and if you don’t have a proper proof you will be asked to pay the charges and this late payment can affect your credit score too.
Don’t miss out any of these steps if you have decided to withdraw your credit card account. Credit cards are totally useful when you get a card according to your usage preference. So know your preferences and get a credit card accordingly but don’t forget to close the account properly before getting a new card.
Maybe interested: Your Credit card guide in UAE
About the author
Nikitha is a Senior Analyst at MyMoneySouq.com. She has been writing about personal finance, credit cards, mortgage, and other personal finance products in the UAE. Her work on Mortgage loans has been featured by the GulfNews and other popular Financial Blogs in the UAE.
