Break ups are often known to carry the baggage of the past into the future. Some break ups could also come back to haunt you at some point in your life. You have to make sure that all issues are discussed and mutually settled.
Strangely, breaking up with credit cards works on the same ideology!
If you feel that you are not using a particular credit card anymore or are holding too many credit cards, then you might want to cancel a few of them. Here is a step by step guide to breaking up with your credit card.
Contact the customer care department of the card issuing company or bank and furnish your credit card details to know the exact amount outstanding on your credit card.
Repay the outstanding balance and clear all your dues. If the outstanding balance is too high then you might decide to repay it gradually over the next 2-3 months. Ensure that you do not swipe the credit card again till you clear all your dues.
Once the complete payment is done, contact customer care to place a request for cancelling the credit card. Note down the confirmation request number and follow it up with a written email. The written communication and the confirmation request number would help you a great deal in future.
Stand firm with your decision to cancel the credit card. The card issuing company will try to lure you by offering attractive interest rates and offers. Stick to your guns!
Wait for the confirmation stating that your credit card has been cancelled. In case, you do not hear from them, then coordinate to know the status on the same and always insist on a written acknowledgement.
Check your credit report to ensure that the closure of the credit card also reflects on your credit report. Credit institutions report data to credit bureaus on a monthly basis and keeping that in mind you should check your credit report after 45-60 days from the date it is confirmed that your card is closed.
Cut your credit card across the magnetic strip and your signature. Now your credit card is cancelled and closed.
Closing your credit card will lower your credit score. This is because your credit utilization ratio (i.e. credit used against the available limit) also forms a part of your score calculation. However, this should not stop you from cancelling your credit card. Closing the credit card would be much wiser than keeping them dormant.
No emotions, so this break up is easier!