Thinking about closing a credit card account? Whether it’s high annual fees, a card you rarely use, or simply clearing unused accounts, knowing how to close a credit card the right way matters—especially for your credit score. The process is simple, but a few critical steps ensure you don’t hurt your finances or miss out on rewards. This 2025 guide breaks down how to close your credit card account cleanly, securely, and without surprises.
Things to Consider Before Closing Your Credit Card
- Impact on Credit Score: Cancelling a credit card can temporarily lower your credit score, especially if it’s an old account or has a high credit limit. Consider how this may affect future loan or credit card applications.
- Unused Rewards: Check for unredeemed reward points, miles, or cashback. Most issuers forfeit unused rewards when you close your account.
- Outstanding Balance: You must pay off all dues, including interest and fees, before closing a card.
- Linked Services & EMIs: Ensure no automatic bill payments, subscriptions, or ongoing EMIs are tied to the card.
Step-by-Step Guide: How to Close Your Credit Card Account in India
-
Pay Off Your Balance
Start by fully paying your credit card balance. This includes all recent charges, EMIs, or interest accrued. Verify if any recent purchases or EMIs are still reflecting as “unbilled.” -
Redeem Rewards
Claim any points, cashbacks or travel miles you’ve collected. Each issuer has its redemption process, so log into your account or use the bank’s reward portal. -
Delink Automatic Payments
Review your statements for any linked auto-payments or subscriptions (OTT services, utility bills, or insurance). Update your payment details for these services before closing the card. -
Raise a Closure Request
Contact your card issuer using official channels:- Customer care phone number listed on the bank’s website or card statement
- Bank’s official email support
- Online chat or support options in the banking app
State clearly: you wish to close the credit card account and request written confirmation after closure.
-
Get Written Confirmation
Within a few days, you should receive an official closure confirmation on your registered email or residential address. Retain this document for your records as proof in case of future disputes. -
Destroy the Card
Once the closure is confirmed, physically destroy the card by cutting through the chip and magnetic strip. Never just throw it away—this prevents misuse or data theft. -
Check Your Credit Report
A few weeks after closure, get your credit report from any major bureau (CIBIL, Experian, Equifax, or CRIF High Mark). The card should show as “closed on customer request.” If it appears as “settled,” immediately raise a dispute; settled status can hurt your credit reputation.
Alternate Options: Do You Need to Close the Card?
Before you proceed, consider whether downgrading to a zero annual fee card or a basic version is possible. Many issuers let you switch products, preserving account history and your credit limit.
If high fees or lack of use are issues, ask your bank for a lifetime free credit card or downgrade options before closing.
Common Mistakes to Avoid
- Closing cards with the longest history on your credit file (hurts credit age; impacts score)
- Not checking or redeeming all available reward points or cashbacks before closing
- Leaving a balance or unpaid fee; banks will not close the account until cleared
- Forgetting to switch auto-bill payments to another card
- Not confirming closure and assuming the process is automatic
How Does Closure Affect Your Credit Score?
Closing a credit card can affect your credit score through two main factors:
- Utilization Ratio: Your credit utilization rises if you reduce your total available limit (i.e., by closing a high-limit card). Try to keep utilization under 30% of your available limit.
- Average Credit Age: Older cards boost your credit age. Closing the oldest card may lower your score and affect credit decisions for loans/mortgages.
If you’re looking for cards to keep that offer better rewards or zero annual fees, explore card options at Find My Card or check reviews on the FinWitty Blog.
FAQs on Closing Credit Card Accounts
1. Is there any fee for closing my credit card?
No, RBI guidelines state that banks cannot charge any fee for closure of a credit card account if all pending dues are cleared. However, late charges or interest must be paid before closure. Always check your card’s terms on the bank website for any specific conditions.
2. How long does it take for a credit card to be closed?
It usually takes 7–15 days after submitting a closure request and clearing dues. Your bank will send a written closure confirmation—don’t consider the card closed until you have this proof.
3. What if I have pending reward points or cashback?
Unclaimed rewards are typically lost when you close your card. Ensure you redeem all points, vouchers, or cashback before making a closure request.
4. Does closing a credit card increase my credit score?
Usually not. Closing a card can temporarily reduce your credit score due to an increase in your credit utilization ratio or reduction in credit age. However, if you have many cards or high debt, managing your credit profile can help in the long term.
5. Can I reopen a closed credit card account?
This is rare. Most issuers require a fresh application if you want the same card again. Some may consider reactivation within a short window, but this depends on bank policy.
Final Thoughts
Closing a credit card account is a straightforward process, but the details matter. Always clear balances, redeem rewards, confirm closure, and check your credit report. If you’re considering a new credit card, browse detailed product reviews and compare cards at Find My Card or explore the latest articles on the FinWitty Blog. For any questions or support, feel free to contact our team.