It’s simple. But it shouldn’t be rushed.

Closing a credit card affects rewards, limits, and sometimes credit score.

Better to plan it properly.

Step 1: Clear All Outstanding Balance

Before cancelling, make sure:

• Total outstanding is fully paid
• No EMIs are active
• No pending transactions are unsettled
• No dispute cases are open

Even a small unpaid amount can delay cancellation.

Zero balance is required.

Step 2: Redeem Reward Points

Most banks cancel unused reward points once the card is closed.

Before cancelling:

• Check reward balance
• Redeem cashback or vouchers
• Use any available benefits

After cancellation, points are usually lost.

No recovery later.

Step 3: Remove Auto-Debits and Subscriptions

If the card is linked to:

• OTT platforms
• Utility bills
• Insurance payments
• EMI auto-debits

Update payment method first.

After cancellation, automatic payments will fail.

That may lead to penalties.

Step 4: Contact the Issuing Bank

Credit cards can only be cancelled through the issuing bank.

Common methods include:

• Calling customer care
• Submitting online service request
• Visiting a bank branch

Banks like HDFC Bank, ICICI Bank, or State Bank of India follow similar procedures.

Typical steps:

• Verify identity
• Confirm zero balance
• Raise cancellation request

Always ask for a service request number.

Step 5: Get Written Confirmation

After raising the request:

• Wait for SMS confirmation
• Check email confirmation
• Save the reference number

Do not rely only on verbal confirmation.

Written proof matters.

What Happens After Cancellation?

Once cancelled:

• Card becomes permanently inactive
• Transactions are blocked
• Final statement may be issued

Physical card should be cut across chip and magnetic strip before disposal.

Security still matters.

Does Cancelling a Credit Card Affect Credit Score?

It can.

Cancelling a credit card may:

• Reduce total available credit
• Increase credit utilisation ratio
• Slightly lower credit score temporarily

Closing an old card with high limit can impact more.

Credit score usually stabilizes if other accounts remain healthy.

When Cancelling Makes Sense

Cancelling is reasonable if:

• Annual fee is not worth the benefits
• Card is rarely used
• Too many cards exist
• Spending habits have changed

Simplifying finances sometimes helps.

When to Think Twice

Pause before cancelling if:

• The card is one of the oldest accounts
• It has high credit limit
• Credit score is still improving

Length of credit history matters.

Keeping an old card active with small usage can support credit profile.

How Long Does Cancellation Take?

Typical processing time:

• 5–10 working days

If pending transactions exist, it may take longer.

Always wait for confirmation.

Can a Cancelled Card Be Reopened?

Usually no.

Once cancelled, the account is permanently closed.

Reapplying requires fresh approval.

Approval depends on current profile.

Quick Checklist Before Cancelling

Before final decision, check:

• Balance cleared
• Rewards redeemed
• Auto-debits removed
• Impact on credit score understood

A little planning avoids regret.

FAQ

Is zero balance mandatory before cancelling?

Yes, full payment is required.

Can cancellation be done online?

Yes, most banks allow online request.

Does cancelling hurt credit score?

It may slightly affect utilisation ratio.

In Short

Cancelling a credit card is easy if dues are cleared and rewards are redeemed.

Consider credit score impact before proceeding.

Always get written confirmation.

Still unsure whether cancelling or keeping the card active makes more sense right now?