Although credit cards can bring in a world of convenience, many times you may wish to cancel or close your credit card. It could be for many reasons like high annual fees, difficulty in managing multiple cards, a different co-branded card providing more value, etc. ICICI Bank allows its customers to cancel or close their credit cards in multiple ways.
Each bank follows a different procedure to cancel their credit card. Read on to know the various ways in which you can cancel an ICICI Bank credit card.
ICICI Credit Card Cancellation by calling customer Care
This is one of the easiest ways of canceling your ICICI Bank Credit card. You could call the ICICI Bank Customer Care at the toll-free number 1800-200-8181 and place a request to cancel your credit card.
The customer care agent will guide you with the procedure for canceling your ICICI Bank Credit Card.
Cancel ICICI Bank Credit Card Online Using the Credit Card Cancellation Form
You could also request the cancellation of your credit card by downloading the Credit Card Cancellation Form by logging on to the ICICI Bank website.
You would need to fill in important details like the number of the primary and the add-on credit card (if any), mobile number, email-id, city/town of residence, and the reason for the cancellation of your card. Fill in and submit the form online.
After submitting the form, a phone banking officer from ICICI Bank will contact you to confirm your cancellation request within 3 days. They process your card cancellation request within 7 working days after confirmation by the phone banking officer.
But, if the phone banking officer cannot contact you within 3 days, the bank will cancel the card.
The bank informs you of the cancellation through the email and the mobile number provided in the cancellation form.
Cancel your ICICI Bank credit card offline using the Credit Card Cancellation Form
If you are not comfortable doing an online cancellation, you have an option to cancel the card by downloading the Cancellation Form or getting it from your nearest branch. You could then fill in the form with the required details and mail the form to one of the two addresses below.
ICICI Bank Limited. Race Course Circle, Vadodara-390007 or ICICI Bank Towers, Bandra-Kurla Complex, Mumbai-400051.
Once the bank gets the completed cancellation form, you will receive a call from the bank and they cancel your card within 7 days. However, if the bank cannot contact you, they could cancel the card from their end.
Things to remember before you cancel/close your credit card
It might be easy to cancel your credit card, but there are some points you should remember before canceling your credit card.
Pay off your outstanding balance
It is very important that you pay off all your outstanding balances before applying for credit card cancellation. If there are unpaid balances on your card, the closure of your card can get delayed.
Redemption of Reward Points
Before you decide to close your card, make sure you redeem all your reward points accumulated on the card. Depending upon your card’s rewards redemption policy, you could either get gifts or vouchers of your choice for the accumulated points.
Do not use your card after applying for cancellation
Once you apply for the cancellation of your card, you should not use that card. As you use the card, you would accumulate balance on the card, which can delay the card closure.
Pay off loans, if any
If you have availed any loans against your credit card, you should pre-pay them before closing your card. You may have to incur a prepayment penalty on your loan prepayment, depending upon the tenure and the terms and conditions of the loan.
You might pay certain bills through your card through standing instructions. Make sure you make alternate arrangements for those payments before you cancel the card. You don’t want to be in trouble for non-payment of bills.
Pay off all charges on the card
There are many charges associated with the credit card that you owe to your credit card issuer. Make sure you pay all charges before you close your card. Any unpaid charges will accumulate and charged interest till you make payment in full.
Effect of Credit Card Closure on your Credit Score
A Credit Score is a measure of your creditworthiness on a scale of 300-900. Credit bureaus issue credit score based on your current and past credit behavior. Lenders use the score to determine your creditworthiness.
As a credit card is an unsecured (not backed by a security/asset) credit product, anything that you do with your credit card will affect your credit score. Closure of your credit card can also affect your credit score. Let’s learn how.
Can reduce your credit history
Very often, you use the same credit card for several years. When used properly, you also end up building an excellent credit history. A long credit history portrays your creditworthiness over time and adds to your credit score. But, when you close a credit card with a long credit history and you have no other products that contribute to your credit history, your credit score can see a temporary drop.
May increase your credit utilization ratio
The credit utilisation ratio is an important component of your credit score calculation. Credit Utilisation Ratio is calculated by dividing your credit card billed amount by the credit limit available on your cards. It is good to keep your credit card utilization between 40-50%.
When you close a credit card but do not cut down your expenses, then you end up increasing your credit utilisation ratio on other available cards. A high credit utilization ratio is not good for your credit score.
Once you get the intimation of the credit card closure from your credit card issuer, proper disposal of the card is also important. You could cut the card into pieces to avoid misuse.
Reapplying for a credit card
Closing a credit card will not have any effect on your future credit card applications. If you have been maintaining a good credit score and are using credit responsibly, then you will not have issues in getting a new credit card when you need one.
Frequently Asked Questions
- How long does it take to cancel a credit card?
It may take up to 7-10 days to cancel your credit card. This could also depend on many other factors, like existing loans or outstanding balances if any. Make sure to clear all balances on your card to expedite the closing process.
- How do I clear off my outstanding balance with the credit card?
It is good to clear off all balances before you apply for card closure. If there are any balances that you might have missed to clear, the bank would intimate you by post/email. Clear them off at the earliest.
- What is the correct method of credit card disposal?
Once you get a confirmation from your bank about the cancellation, you could cut your card into diagonal pieces and safely dispose of it to avoid misuse.
- Should I cancel my credit card or keep it inactive?
If your card has no annual fee then you could retain the card. You should also keep in mind the effect of canceling a credit card. Based on these factors, you could make a decision that is best suited for you.
- Will it be difficult for me to get another credit card if I close my credit card?
If you are maintaining a good credit score and handling credit responsibly, it will not be difficult to get another card.