1. Why Close a Credit Card?
Common reasons to close a credit card include:
- High Fees/Interest: Some cards may not be worth the cost.
- Simplify Finances: Fewer cards mean easier management.
- Avoid Over-Spending: Helps stick to a budget.
- Changed Goals: Lifestyle or financial priorities have shifted.
- Upgrade Options: Better rewards or lower fees with a new card.
2. Things to Consider Before Cancelling
- Credit History: Keeping older cards open can boost your credit score due to a longer credit history.
- Credit Utilisation Ratio: Cancelling a card reduces your available credit, which may increase your credit utilization rate and negatively affect your credit score.
3. Will Closing the Card Affect Your Credit Score?
Yes, it might!
- Increases Credit Utilisation Rate: Less available credit means a higher usage percentage.
- Lowers Credit Account Age: Shortens your average account age, impacting your score.
Be mindful of these factors before proceeding.
4. Steps to Close an Axis Bank Credit Card
Follow these 6 easy steps for a hassle-free cancellation process:
- Step 1: Evaluate Your Decision
Ensure that cancelling the card aligns with your financial goals. - Step 2: Claim Rewards
Redeem any accumulated reward points before initiating cancellation. - Step 3: Pay Off Dues
Settle all outstanding balances to avoid any complications. - Step 4: Contact Customer Care
Call Axis Bank’s customer care to request card closure and get guidance on the process. - Step 5: Submit a Written Request
Send a request form with your name, address, and last 4 digits of the card to Axis Bank. - Step 6: Obtain Confirmation
Get written proof or confirmation that your card account has been closed successfully.
5. Key Takeaways
- Use your rewards points before closure.
- Ensure there are no pending balances.
- Understand how the closure could impact your credit score.
For more details visit Axis Bank Credit Card