When we say that using a credit card is easier than carrying cash, this is not a lie. I mean, credit cards can solve the need for instant cash, but for many reasons, you may want to close your credit card. You have many credit cards, are traveling abroad, your card issuer has raised interest rates or increased annual fees, or simply because you do not want to spend more money. A credit card may seem simple, but only the user knows what is involved. If you do not understand the usage of the card, it may increase the burden. This makes almost no one close their credit card account. There may be many reasons for high-interest rates. They do n’t know how to use them and cannot manage expenses. There are many reasons why you can close your credit card. Most of them think that not using a credit card will automatically close the account, which is wrong. Even if you do n’t use a credit card, you will be charged, and late payment will lower your credit score. Before calling your credit card provider to close your credit card, please follow the steps below. This will ensure that the card is properly closed to avoid any disappointment in the future.
List of Cancel Credit Card in UAE
- Consider meaning
- Pay off the balance
- Subprime credit card
- United Credit Card
- Contact Customer Service
- Get customs clearance
1- Consider meaning
The result of canceling the credit card will affect the change of the cardholder’s lifestyle. Credit card companies and banks can not only give benefits but also allow cardholders to save on daily expenses. This is why it is necessary to think and consider the meaning before canceling a credit card.
The cancellation of a credit card may affect the credit score of the cardholder. Establishing a long-term partnership with a credit card company can have a good impact on the credit score, which is why after the cancellation of the card, it is surprising that this activity will have a negative impact on the credit score because the cardholder has lost the credit card The financial situation is weakening their financial situation.
Before calling your credit card issuing bank to close your credit card, please consider whether closing the card will affect your credit score. Closing a credit card will not delete it from the credit report, nor will it delete any related payment history from the credit report. Therefore, if you want to be able to close the credit card to make the credit bureau “forget” that you are late, you will not be lucky. Any bad payment records will last for seven years. At least make sure that your account is in good standing so that you can include a positive payment status in your credit score.
If you close the account with the expired balance, the account will disappear after 7 years. However, it is important to consider the life of the credit card because the length of the payment history is important to maintain a reliable credit score. If you close a credit card that has been open for many years and only keeps one card for about a year, your credit score may decline. Lenders want to see a consistent record of good relationships with creditors. In addition, if you have recently charged a late fee on your bank card, you may need to open it for a while (the balance is zero) to show the latest positive credit history of the bank card.
2- Pay off the balance
In order to continue to close your credit card account, you need to settle the balance first. Choosing to delay payment of the unpaid balance and applying for cancellation is an invalid option. Due to monthly accumulation, arrears of dues will increase your liability to the provider. Similarly, your monthly interest rate will be applied to your card balance, so it is difficult to settle when you accumulate. The sooner you liquidate your debt, the less impact it will have on your credit rating.
3- Subprime credit card
If you are the primary cardholder, you are solely responsible for any debts on your credit card account, so please contact your credit card provider to cancel the secondary card that may represent your wife. If you are a secondary cardholder, you will not be able to keep your account active after the primary cardholder closes the account.
4- United Credit Card
If your credit card is joint, the two cardholders must agree to close the account. You also need to agree on how to repay all outstanding debts on the card, because you are equally responsible for the debts. If you cannot pay your account in full, please contact your credit provider to notify them and ask them to stop the account to prevent further transactions.
5- Contact Customer Service
Use the phone number on the back of the credit card to call credit card customer service. Let the representative know that you want to close your credit card account. The representative will try to convince you to keep your credit card account open, but you can assert that you have made up your mind and ask the representative to confirm your request orally and ask you to provide a confirmation email or SMS.
5- Get customs clearance
When clearing the outstanding balance, make sure to keep the receipt of the payment amount. In unfortunate circumstances, this will be used as proof of payment and provide supporting documents in the event of an issuer’s management error.
In order to obtain reliable legal protection, you need to obtain approval from the credit card issuer after payment. This will confirm that you are no longer responsible for this provider. Your provider will update your credit scores for all banks in the UAE accordingly; however, using your customs certificate requires the new credit score to be safer to avoid any disappointment in the future.