While having a credit card is extremely beneficial for you, there are times when due to financial difficulties or other reasons, you might have to close your credit card account.
How to Close SBI Credit Card?
If you are wondering how to close SBI credit card, here are some easy ways:
1. Cancellation by Calling Customer Care
One of the ways of closing your credit card would be calling customer care of SBI. There is a toll-free number or a landline number along with which you need to use the local STD code.
You need to share your name, card number, address, and contact details when you cancel your credit card by calling customer care. A word of caution, you should not share confidential details like your card’s PIN or CVV number.
Once you have initiated the cancellation process through customer care, you will be contacted by the bank and provided the details regarding the cancellation.
2. Written Request to SBI
You can also cancel your SBI credit card by making a written request to the bank. The request should be mailed to SBI Card, PO Bag 28, GPO, New Delhi 110001.
The letter should contain relevant details like your card number, name, address, and contact details. Confidential information, like CVV or PIN of the card, should not be shared in this letter.
For safety’s sake, cut the card diagonally to prevent misuse. When you close your SBI credit card as the primary holder, the add-on cards will also be automatically closed.
Once your account is closed, the card will be invalid. However, you may reactivate it if you so wish. You will get a written confirmation from the bank regarding the closure of your card.
Your credit report will also reflect the closure of your credit card.
This article shows you how to close SBI credit card in the easiest possible way. There are a few things you need to take into consideration before closing your account.
Check the Following Before Closing Your SBI Credit Card
You must take care of specific things before closing your credit card. Here they are:
1. Clear Your Dues
Before you close your credit card account, make sure there are no unpaid dues. If you have any outstanding payment on your credit card account, the bank will notify you regarding the same through a letter.
When you clear your dues, the bank will initiate the cancellation process. You should settle your outstanding dues and EMIs according to SBI’s guidelines.
2. Redeem Your Reward Points
Don’t forget your reward points when you close your account. Check your card for unused reward points.
Redeem these points for great offers from the bank’s catalogue. The time limit for the redemption of reward points is 45 days after cancelling the card.
3. Don’t Use Card After Application For Cancellation
When the cancellation process is underway, you should not use the card since there will be some outstanding amount in your card at the time of cancellation. The cancellation request will be rejected by SBI if there is a fresh payment.
4. Check the Latest Statement for Fraud
The latest statement should be checked for any kind of fraud before you proceed with the cancellation process.
Once these steps are taken, you can proceed with the cancellation of your credit card.
How Will You Be Affected by Closing Your Credit Card
You will be impacted if you close your SBI credit card. Given below are the three ways in which you could be affected:
1. Credit Score
Your credit score will be lower once you close your credit card. You will have a lesser overall credit limit. Your credit utilization ratio that is calculated as a ratio between credit utilization and credit limit will go up.
When your credit utilization ratio exceeds 30% of the credit limit, your credit score falls. Your credit score takes into account your payment history, credit history length, credit mix, and new credit. Each factor has a percentage, and the total determines your credit score. Therefore, it is important to improve your credit score, as soon as you see a hiccup.
2. Credit History Removed
The usage of your card and repayment schedule decides your credit history and closing your credit card means removing your credit history. Your credit score is decided by Credit Bureaus who need your credit card history for their calculation.
There are numerous advantages of having a decent credit score, and you should keep this in mind when thinking of closing your SBI card.
3. Difficulty in Handling Emergencies
A credit card is not just a lifestyle product; it is also useful when it comes to emergencies. When it comes to hospitalizations, getting a large sum in cash becomes tough.
There are lots of hospitals that accept credit cards, and you can immediately make the payment required on admission. You need to remember that the treatment of you or your loved ones will be delayed without paying the hospital fees on time.
Advantages of Credit Score
Here are some advantages of a credit score:
1. Competitive Terms on Loans and Credit Card
Whether it is loans or credit cards, you will get the best terms from SBI if you have a credit score in terms of rates and tenure. Other benefits include a higher loan amount and lower processing fees.
2. Faster Loan and Credit Card Approval
The time for processing your loan and credit card applications will be faster since you will be in the low-risk borrower category.
3. Higher Credit Limit
You will get a higher credit limit compared to those without a credit history.
4. Best Rewards and Offers
With a credit score, you will get better offers and rewards from SBI’s brand partners.
5. Pre-Approved Loan Offers
Getting approval for loans is tough if you don’t have a credit history. For customers with a credit history, banks provide pre-approved loan offers apart from better repayment terms.
So, before you decide to close your credit card, try to see if you can reduce your spending and keep it given the benefits it provides.
There are many benefits of having a credit card, but sometimes you might have financial issues and need to close the credit card. There are a few steps you need to take before you close your credit card like checking for any outstanding or unused reward points.
You need to destroy the credit card to prevent misuse. Call the customer care number or write to SBI to close your card.