Recently, the use of credit cards has become commonplace at present. To be seen, credit cards have become the most common way of payment in urban areas. Customers can make offline or online purchases through credit cards. Credit cards become readily available. Using multiple credit cards simultaneously, people get stuck in high interest. If you are also using more than one credit card and want to close any of them, you can turn it off by calling customer care or by entering an online request.
What to do before closing a credit card?
Pay off: When you're closing your credit card, first check if there are any dues, pay it first. With arrears, you cannot close it. Your credit score will be bad when interest and late payment occurs if a pending fee occurs. If there is an existing EMI/loan on the credit card, then you should pay additional charges at a time on the outstanding balance before closing the card.
Credit Utilization Ratio: It is important to know about the credit utilization ratio (CUR) at the time of closing credit cards. In fact, CUR is the percentage of available credit that you are spending. A high CUR can spoil your credit score. Your CUR should ideally be in the 20-30% range. So remember this work before closing your credit card account.
Reward Points: Don't forget to redeem your old reward points before closing any credit card account. Most credit card companies give reward points on transactions made through credit cards, which can be redeemed through cashback, discounts, coupons. Make sure you've redeemed it before you close your card.
Keep taking follow-up: Bank employees have multiple jobs at once, so it can be delayed several times when you make a stop request. That is why you keep taking follow up. Contact your bank and make sure the credit card has been canceled by the bank, and no transactions are being made with the card. Don't forget to take your no-dues certificate from the bank.
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