State Bank of India (SBI) serves the largest number of customers in India. With its wide reach, it also provides a good range of bank services. One of its services, SBI credit cards, comes in a variety of types based on the customer's requirements and are categorised under Lifestyle, Reward, Shopping, Travel & Fuel and Business sections.
If you own an SBI credit card and wish to cancel it, the simplest way to do it is by calling the bank’s customer service number and asking for the card to be cancelled.
You can look up the customer service number at the back of your SBI credit card. You will need to give the requisite identification details including your credit card number and your date of birth to request cancellation. Alternatively, you could contact the customer service desk by SMS or email and ask for help with the cancellation. The various contact details are listed on the bank’s website.
Ways to Close or Cancel an SBI Credit Card
SBI credit cardholders can close or cancel their SBI credit cards using the methods listed below:
By calling the Helpline number: SBI credit cardholders, who want to cancel or close their credit card account, can do so by calling the toll-free number,1860-180-1290, or 39-02-02-02 (by using the local STD code as a prefix).
By writing to SBI placing a request to close the credit card on the following address: SBI Card, PO- Bag 28, GPO, New Delhi-110001.
The cardholder must mention their name, address, the card number, and their contact details. They should refrain from mentioning confidential information like the card’s CVV number or PIN. Once the cardholder has initiated the process of closing or cancelling the credit card, they can cut the concerned card diagonally. Once the primary cards are terminated by the bank on the cardholder’s request, all the add-on cards availed will also get cancelled automatically.
Things to Keep in Mind Before You Cancel Your SBI Credit Card
Although it is understood that a cardholder can cancel or close a credit card at any time they wish, some points must be verified before initiating the cancellation process. Listed below is a checklist for cardholders:
Make sure the dues are paid: In case the cardholder has an outstanding expiration on the credit card that you want to close or cancel, the bank will notify you by sending you a letter. Only once the cardholder deletes the outstanding amount, will the credit card cancellation process begin. Under the guidelines established by SBI, before the cardholder begins a process to cancel or close his credit card, he must settle all the outstanding balance and all the EMIs that carry the card in question.
Reward points Redemption: Before closing or cancelling your SBI credit card, cardholders should verify their reward points that haven’t been used. They must redeem them for products from the bank's rewards catalogue or use them to get good discounts. Cardholders can redeem unused reward points within 45 days after the card is cancelled.
The card should not be used just before the start of the cancellation: It is not recommended to use the card just before the start of the cancellation process, as it will still generate a payment status that the cardholder must pay. Also, the bank will not respond to a cancellation request if there is a new payment pending.
The last account statement must be thoroughly verified: cardholders must thoroughly verify the last account statement of the card they wish to cancel to ensure that no fraudulent transactions are made.
What Happens After Cancelling SBI Credit Card?
After closing or cancelling SBI credit card, the customers may face the following consequences:
Lowered Credit Score – Customers who close their credit card tend to lower their overall credit limit. This, in turn, increases the credit utilization ratio, the ratio between the credit limit and credit utilization. Increased credit utilization ratio results in a lowered credit score, especially if it goes over 30% of the credit limit.
No more credit History – If by cancelling a credit card customer shuts down the only line of credit they had. Then they risk shortening their credit history. Also, credit bureaus can no longer observe their financial behaviour which will result in a lowered credit score.
How will I be notified by the bank if I fail to clear my due payments before initiating cancellation?
Customers will have to clear out dues before initiating closure of their credit card. Customers won’t be able to cancel their credit cards if they have any dues on it.
What are some dos and don’ts to keep in mind before or after starting the procedure to shut the credit card account?
You will have to clear out the dues and be careful of not using the card before and after the initiation. Also, don’t share confidential information like credit card PIN, CVV number etc. with the bank. Make sure to cut your credit card diagonally before disposing of it.
Is the credit card rendered useless after the account is closed?
Yes, the card is rendered invalid post closure. However, the bank may allow reactivation.
When will my account be considered closed?
The Bank will give a written confirmation once an account has been closed. Also, the credit report will show the closure of a credit card account.
Will I have to individually close my add-on cards?
Once the primary card has been closed, all the add-on cards will be rendered non-functional as well.
While credit cards are one of the most useful products in the world of finance, sometimes, cardholders find it difficult to maintain them. In a lot of cases, they might feel the urge to opt for a different card altogether. Cardholders must close or cancel the credit card that they want to stop using. This involves a simple process and will ensure that the cardholder doesn't have to pay unnecessary fees.