How to Permanently Close Your Credit Card: A Step-by-Step Guide

While credit cards offer flexibility and convenience, there may be valid reasons to stop using one. Whether it’s due to high annual fees, overlapping features with another card, or reduced spending habits, many individuals may wish to cancel their credit card. However, closing a credit card must be done properly to avoid negative effects on your credit profile.

This guide walks you through the right way to close a credit card in India, step by step.

Things to Consider Before You Cancel Your Credit Card

Before proceeding with the closure, consider how it might impact your creditworthiness. Your credit card contributes to your overall credit history, usage ratio, and long-term score.

Closing your oldest card could shorten your credit history. If the card carries a high credit limit, its closure could also affect your credit utilisation ratio. These changes can potentially lower your CIBIL score, especially if you plan to apply for loans in the near future.

Additionally, closing a card means forfeiting any remaining reward points, discounts, or cashback benefits. Hence, make sure this decision aligns with your financial goals.

Step-by-Step Process to Close a Credit Card in India

1. Pay Off the Outstanding Balance

Your credit card must have zero outstanding dues. Even small pending amounts can delay the closure process or accrue interest. Clear all bills and recheck after a few days for any auto-debits or hidden charges.

2. Redeem Any Unused Reward Points

Most issuers do not allow reward points to be used once the closure request is placed. Redeem your points through the bank’s portal, mobile app, or helpline before initiating the cancellation.

3. Call Credit Card Customer Care to Initiate Closure

The next step is to contact credit card customer care using the number provided on your card statement or official bank website. Provide your card number and identification details to request closure. The representative may ask for a reason and offer alternatives like card upgrades or fee waivers.

If you still wish to continue with the cancellation, request a Service Request Number for tracking the process.

4. Submit a Written Request (If Required)

Some issuers may need a written or online closure request. You can do this through internet banking, by filling a request form at the nearest branch, or via email. Mention your name, registered contact details, card number (partially masked), and reason for cancellation.

Keep a copy or screenshot of this request for your records.

5. Get a Closure Confirmation in Writing

Ensure you receive a written confirmation from the bank stating the card has been closed with zero balance. This is usually sent by email or post. Retain this document for future reference, especially if there are disputes or credit report discrepancies later.

6. Check Your Credit Report After 30–45 Days

Once closed, the card’s status should reflect as “closed at customer’s request” on your credit report. Visit a credit bureau website to download your report and ensure there are no errors. This step confirms that the account was not marked “settled” or “written off,” which can negatively affect your credit standing.

How to Cancel a Credit Card Offline vs Online

Online Method:

1. Log in to net banking or the mobile app
2. Navigate to the ‘Credit Card’ section
3. Select ‘Cancel Credit Card’ or ‘Close Card’ option
4. Submit a request and await confirmation

Offline Method:

1. Call the credit card customer care line
2. Visit the nearest branch with your KYC documents
3. Submit a written request or form
4. Receive an acknowledgment and confirmation

Both options are valid, but online closure may offer faster turnaround in urban areas. Always follow up if no response is received within 7 working days.

Common Mistakes to Avoid While Closing a Credit Card

• Ignoring the final statement

Charges like interest or late fees may reflect after closure if the last cycle is missed

• Failing to confirm closure

Assuming a card is closed after cutting it physically is a mistake. It must be processed through the bank

• Closing your only active card

This could leave you with no credit footprint, making future borrowing harder

• Cancelling during a dispute

Always resolve billing disputes first before raising a closure request

What Happens After You Close a Credit Card

The credit card will no longer be active, and you cannot use it for payments or EMI conversions. The account entry remains in your credit history but is marked as ‘closed’. You may still receive a final statement for any trailing charges.

Banks may contact you with offers to retain your account, but you are not obligated to accept unless it genuinely benefits your financial situation.

Final Checklist Before You Close Your Credit Card

• Dues cleared and balance zero
• All reward points redeemed
• Written request submitted (if required)
• Closure confirmation received in writing
• Credit report checked and updated

Conclusion

Cancel credit card is not a negative financial move when done for the right reasons and with careful planning. It becomes part of your credit journey and should be treated with the same diligence as opening a new line of credit.

If you’re unsure, consider downgrading to a no-fee card or pausing usage instead. Either way, monitor your credit score regularly, especially after significant changes to your credit portfolio.