Surrendering a credit card? Read this
Posted on: 21/Jan/2016 4:19:03 PM
Most of us have got multiple credit cards for our day to day usage. Perhaps, you have those for two reasons: you should have got persuaded by a sales person or that you have fallen for the reward points.
There comes an awakening call all of a sudden and you realize that you are making use of five credit cards of different banks each. You decide to surrender these cards and set yourself free. The problem begins here.
Say, you are eligible for Rs 2 lakh personal loan. By surrendering your credit card, your loan ability comes down too. Furthermore, it also reduces your CIBIL score (a three digit score that indicates your credit history).
Surrendering a credit card
It is always recommended to think twice before surrendering your card. If you are sturdy about your decision and particular about surrendering the card, you ought to follow the series of procedures. Inform your bank about your surrender and check whether there is any ECS payment activated for the card.
Make sure that you have cleared all outstanding dues in your credit card. It is always best to head to the bank and carry out the cancellation formalities. Also make sure to receive an acknowledgement that you have cancelled and surrendered the card in writing. This can be made easy by writing a letter to the bank stating about your cancellation. Get this letter attested by the bank.
If you are cancelling a card, it is better to stop using it a few months before cancellation. Also ensure that you communicate with the bank over phone and express your interest in cancelling the card.
You may cancel the card well before the due date for annual credit card charges. By doing so, you can avoid paying the due.
