A credit card is a good backup device to combat any financial crunch. Nonetheless, there are a few reasons why you may wish to cancel your credit card or upgrade to the best credit card in India, get rid of paying the yearly charge, cancel current credit cards for good offers on other credit cards, etc. It would be best if you do not cancel your credit card quickly. It will help you if you use the Credit Card App. Canceling credit cards hastily might have a detrimental impact on your credit score when you have used the account for several years. The article will guide you on how to close a credit card and maintain good credit scores. Global Top Trend
Can You Close a Credit Card and Still Keep Your Good Credit Score?
Closing credit cards can reduce your credit score not because of closing your account but because canceling your credit card may increase the credit utilization ratio. To boost credit scores, you have to keep your credit utilization ratio to a low level. The credit utilization ratio highlights the link between your credit card balance and your limit. You can use the Credit Card App for the best credit card in India.
You can close your credit card and keep your good score, but you should remember a few significant points before canceling your credit card. The important suggestions that you should remember before canceling your credit card account are:
- Pay your credit card balance before canceling your credit card.
- Close all continual payments you initiate on the credit card you wish to cancel.
- It will help you if you pay debts and balances. If you cannot pay any debt, you can opt for consolidation loans to help manage your credit utilization ratio.
- Whether you have a credit card that can help you claim rewards, it would be best if you redeem all the rewards you did not redeem earlier.
- If you want to close auto payments on the credit card, it would be best to disable the auto-payment feature. It would be best to move the auto-payment feature to other accessible options if you want to avert missing payments on time.
- Inform the customer support service of your credit card issuer about your decision to cancel your credit card. You can ask the credit card issuer to give a confirmation in writing that your credit card account is canceled according to your request.
- Notify your credit card issuer about the confirmation of your credit card closure. It will help if you write your name, contact details, credit card information, etc., in the notice.
- When the credit card issuer cancels your credit card, break it into tiny pieces and throw them in dustbins, making it extremely difficult for any thief to join the tiny pieces of credit card together.
- Check your credit report thoroughly to ensure the credit card issuer updated your account without any remaining balance. Trending Update News
If you follow the steps mentioned above, it will help you to close your credit card without compromising your credit score. It would be best to consider some other aspects before closing your credit. You may want to opt for the best credit card in India or download the Credit Card App on your mobile phone. You can downgrade your account to a credit card where you do not have to pay any yearly charge.
It would be best not to close a credit card until there’s a solid reason. You might want to close your credit card and upgrade to the best credit card in India. Cancelling credit cards will not boost your credit score or erase any negative data from your credit report. If you find no other option other than cancelling your credit card, your reason for cancelling your credit card must be vital. Using the Credit Card App is beneficial. For instance, you may dismiss cancelling your credit card if you have any important credit application planned. When you opt to cancel your account, it will help you if you ensure that you pay all your credit card bills. Adopting the methods mentioned above will help you close a credit card and keep a good credit score.