Nowadays, credit cards have become a necessity for many people. Very few people do not use a credit card. From shopping to bill payments, people rely on credit cards. The main reason behind this is the offers and discounts available on them.
Credit cards provide various discounts on shopping and also offer reward points, which help save money. Additionally, even if someone does not have cash, they can still shop using a credit card. Because of these benefits, the use of credit cards is increasing rapidly. Many people use more than one credit card. However, having multiple credit cards can cause several problems. It increases the risk of missing bill payments, which can lead to extra charges.
Not only that, but having more credit cards can also increase your expenses, putting you in financial trouble. Today, we will explain how you can close your credit card properly.
How to Close Your Credit Card
1. Call Customer Care
You can close your credit card by calling customer care. You need to provide some important details and request to close your card. After your request is processed, the bank will close your card within a few days.
2. Email the Bank or Apply Online
Another way to close your credit card is by sending an email to the bank. In the email, you need to share your details and request to close the card. You can also visit the credit card issuer’s website and apply online for card closure.
What is a Credit Card?
A credit card is a financial tool that allows you to borrow money for transactions. In simple terms, it lets you buy now and pay later. Every credit card has a set credit limit, which is decided by the issuer based on your credit score and eligibility.
Important Credit Card Terms
1. Credit Limit
The credit limit is the maximum amount you can borrow on your credit card. It is determined by the bank based on your income, credit score, and repayment history. If you exceed this limit, you may have to pay extra charges, or your transactions could be declined. Managing your spending within the limit is important for maintaining a good credit score and avoiding unnecessary fees.
2. Interest Rates
Interest rates on credit cards are usually expressed as the Annual Percentage Rate (APR). These rates vary depending on the bank and can change based on market conditions and your credit score. If you do not pay your full credit card balance on time, interest is charged on the remaining amount. Managing your balance wisely helps minimize interest charges and maintain financial stability.
3. Fees and Charges
Credit cards come with various fees, such as:
Annual Fees – A yearly charge for using the credit card.
Late Payment Fees – Charged when you fail to pay the minimum amount due on time.
Cash Advance Fees – Charged when withdrawing cash using a credit card.
Foreign Transaction Fees – Charged for purchases made in foreign currencies.