Planning to close a credit card? Learn how to close a credit card in UAE properly, Closing your credit card account is effortless if you follow the right way to cancel a credit card properly.
To make your job even easier, MoneyMall has listed these easy steps to close a credit card in UAE for you in this article. Continue reading…
Credit cards need no introduction. Almost everyone in the UAE has availed the benefits of using a credit card at least once in their lifetime. For those who haven’t, credit cards allow you to purchase goods or services on credit for a small fee. It is an alternative for cash and enables you to carry out internet-based and shop-based transactions with ease. But, at the same time, it could be a bigger burden if you do not understand the usage of the card. In such a situation, it is better to close your credit card account because unlike what most people think, not using the credit card will not automatically close the account. There would still be some charges imposed on the card and delaying the payments, on top of that, will greatly damage your credit score.
There can be several reasons due to which you might want to close your credit card account – high-interest rates, not knowing how to use a credit card, not being able to manage expenses, leaving the country, and so on. Whatever your reason might be, you can easily close your credit card account by following a few simple steps. The steps for account closure are given below:
Check your credit balance and payoff outstanding amount
The first thing that you need to take care of before you go ahead to close a credit card is checking your balance. Check the balance on your credit card and if you are supposed to pay any, then clear the balance. Only after you do so, proceed further. Most of us simply forget to clear the existing bills. So, make sure that you keep this step in mind. If you can’t clear the bill amount, you can request the authorities to make your account dormant so that no transactions can be made using the card. You can, then, clear the balance in instalments in accordance with the bank’s policies.
Close the supplementary cards
A number of credit card companies also offer a few supplementary cards along with the primary card. Even though deactivation of the primary card automatically deactivates the supplementary cards, it is always safer to close other related cards before you proceed with closing your credit card account as they are associated with your primary card
Contact the customer care service
Once you have cleared the credit balance and closed all related cards, you have to call the customer care service of your bank or credit card provider from your registered mobile number and ask them to close your credit card account. Usually, account closure is a time taking process so ask them to stop the transactions, so that you won’t need to pay any extra cash on that account. You will eventually get a message on the registered mobile number regarding the account closure. Make sure that you save the received message.
Ask for a document proof of credit card closure
Once your bank authorities approve for closing the account, request them for a printed document or a sanction letter about the account closure. This is very important because at times banks can miss out on deactivating your account and if you don’t have proper proof you will be asked to pay the charges. Moreover, since these payments shall be considered late, they can affect your credit score as well. So, remember to check your credit score once you close your credit card account. Through this, you can also get the details of your existing cards.
Dispose of your card after confirming the cancellation
Once you have an official confirmation that your credit card is cancelled, Note down you credit card numbers for any future records and then Destroy your credit card properly so it cant be misused by anyone, pick up the scissors, make sure that you are cut off every number from your card, Card numbers, Expiry dates, CVVs.
Check your Credit report
Once you completed all the credit card closure formalities with your bank, check your credit report with AECB, to ensure the closure of the card is reported to the credit bureau and there is no discrepancy there. It generally takes less than a month depends on how fast your bank reports it to the credit bureau. if you find any issue, contact your bank customer care as well as AECB Credit Bureau along with closure proof the correct the information.
Make sure that you do not skip any of these steps if and when you decide to close any or all of your credit card accounts. Credit cards can prove to be really advantageous if they are used with caution. So, the next time you get a new credit card, choose a bank and a card according to your usage preference. Most importantly, do not forget to follow every step mentioned above and close your credit card account properly before you get a new card.