How to properly cancel a credit card in UAE

properly cancel a credit card in UAE

It won’t be a lie when we say that using a credit card is easier than carrying cash around. I mean credit card solves the need for instant cash but there are many reasons why you might want to close your credit card. You have a lot of credit cards, you are traveling abroad, your credit card issuer has raised interest rates or increased annual fees, or simply because you don’t want to spend any more money. Credit cards seem simple, but only the user knows what is involved. If you don’t understand the usage of the card, you may be more burdened.

This makes almost no one close their credit card account. High-interest rates can have many reasons, they don’t know how to use them, they can’t manage expenses, they leave the country, and 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 don’t use a credit card, you’ll be charged a fee, and late payment will lower your credit score.

Before calling your credit card provider to turn off your credit card, please follow the steps below. This will ensure that the card is properly closed to avoid any disappointing situation in the future.

Steps to follow to cancel a credit card in UAE

  1. Consider the Implications
  2. Pay off the balance
  3. Secondary credit card
  4. Joint credit card
  5. Contact Customer Service
  6. Get customs clearance

1- Consider the Implications

The result of canceling a credit card can affect the lifestyle changes of the cardholder. Credit card companies and banks not only give benefits but also allow the cardholder to save on their daily expenses. This is why it is imperative to think and consider the implications before canceling the credit card.

Canceling a credit card may affect the credit score of the cardholder. Having a long term relationship with the credit card companies can show a good impact on the credit score which is why when the card is canceled it comes as a surprise that how negatively this activity would affect the credit score this is because the cardholder is losing his/her financial line that is weakening their financial position.

Before calling your credit card issuer to close your credit card, please consider whether closing the card will affect your credit score. Closing your credit card will not remove it from your credit report, nor will it remove any relevant payment history from your credit report. So if you want to be able to close your credit card so that the credit bureau “forgets” you are late, you are not lucky. Any bad payment records will last for seven years. At the very least, keep your account in good standing so that you can include positive payment status in your credit score.

If you decide to close it later, it will remain in your credit report for approximately 10 years. If you close your account with an expired balance, it will disappear after 7 years. However, it is important to consider the life of your credit card because the length of your payment history is important to maintain a reliable credit score. If you close a card that has been open for many years and only retains a card for about a year, your credit score may drop. Lenders want to see a consistent record of good relationships with creditors. Also, if you have recently had a late fee on your card, you may need to keep it open for some time with a balance of zero to show the card’s most recent positive credit history.

2- Pay off the balance

To be able to continue to close your credit card account, you will need to settle your balance first. Choosing to delay paying the unpaid balance and applying for cancellation is an invalid option. Due to monthly accumulation, delays in repaying dues will increase your liability to the provider. Also, your monthly interest rate will apply to your card balance, so it is difficult to settle when accumulating. The sooner you clear your debt, the less impact it will have on the credit rating.

3- Secondary credit card

If you are the primary cardholder, you are solely responsible for any debt on your credit card account, so please contact your credit card provider to cancel the secondary card that may appear on your wife’s behalf. If you are a secondary cardholder, you will not be able to keep your account active after the primary cardholder closes the account.

4- Joint credit card

If your credit card is a joint name, both cardholders must agree to close the account. You also need to agree on how to repay all outstanding debt on the card, because you are equally responsible for the debt. If you are unable to pay the 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

Call the customer service of the credit card using the phone number on the back of the credit card. Let the representative know that you are requesting 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 verbally and ask for a confirmation email or SMS.

6- Get customs clearance

When clearing your outstanding balance, be sure to keep a payment receipt for the payment amount. In the unfortunate case, this will be used as proof of payment and will provide supporting documentation in the event of an administrative error in the issuer.

To obtain reliable legal protection, you will need to obtain a letter of 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 letter to request a new credit score is safer to avoid any disappointment that may arise in the future.

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