Some people often get credit cards for the wrong reasons – to help them spend money they don’t have or because they are lured in by a flashy sign-up bonus or a welcome gift. But if you’re not using your credit card responsibly, it can do more harm than good.
Do you think you’re ready to cancel your credit card? Not so fast! Before taking any steps, make sure you know what you are getting into. This guide will show you how to cancel your credit card and explain why it might be the right decision for you. Let’s be financially savvy, shall we?
Should you cancel your credit card now?
You have probably had a few reasons why canceling your credit card is the best thing to do for now. Just as you thought you could earn more points and save more with a 0% installment program, your card issuer might have changed its T&Cs and increased the annual fees and other charges.
While the interest rate in credit cards is the same regardless of the issuer, capped at 2% per annum as per Banko Sentral ng Pilipinas’ memo, canceling your card now may be the best option, especially if you are already experiencing any of the following setbacks:
- You’re already spending more than what you can afford every month, resulting in mounting debt and financial trouble.
- Another credit card issuer offers a great deal that suits your lifestyle, such as cashback on groceries, dining, and fuel. If there’s no use in carrying two cards, go ahead and cancel the old one.
- You’re not satisfied with the rewards program anymore because of the changes in the T&Cs. If you need to spend more to earn more points, you might need to cancel your card and look for a better option.
- You’re experiencing unforeseen emergencies like job loss, unexpected car repairs, or medical bills, or you were retrenched and are now having difficulty finding a new job.
- You’re going through a challenging financial situation. Sometimes life throws us curveballs, and we have to prioritize ourselves. If you have no other choice but to cancel your credit card, remember that it’s better than going into debt or getting into trouble with your credit score.
What to do before you cancel your credit card?
Before you cancel your credit card, read the terms and conditions carefully. Ensure that you are not obliged to pay anything if you terminate the card. Be aware of any fees for closure or balance transfer before doing anything else.
If you are enrolled in a 0% installment program or have the remaining total amount due for the next billing cycle, ensure that you settle all your bills. If you have an active installment plan and want to cancel it early, the bank will require you to pay the remaining balance on top of the processing fees.
If you’re earning rewards points from that credit card, better redeem them for vouchers or gift certificates so you can use them when you shop online. Otherwise, you will lose them if you cancel your card soon without checking the redeemable rewards points.
How to cancel a Citibank credit card?
The Citibank app has all the basic features you need to manage your credit card. But unfortunately, you can cancel your card through the app, and you can only lock your card for future transactions and unlock it when you need to use it.
But if you’re already decided to close your account, you can call their 24/7 hotline numbers 8995 9999 (Metro Manila), 234 9999 (Metro Cebu), and +63 2 8995 9999 if you’re calling from overseas.
How to cancel an HSBC credit card?
HSBC has a mobile banking app that lets you manage your credit card, view your transactions, and monitor your cashback and rewards. You can click the Contact & Support tab to call HSBC from your mobile phone directly.
Click the Contact & Support > Contact HSBC > HSBC Credit Card customer (02 88580000) and tap the box to activate the call.
How to cancel a Security Bank credit card?
If you have a Security Bank credit card, you can email [email protected] for a specific request like canceling a credit card.
However, it may take a few days for a customer support agent to get back to your request, so if you’re in a hurry, you can also call the customer service hotline at +632 8887-9188 or 1-800-1-888-1250.
How to cancel a Metrobank credit card?
If you’re not satisfied with your Metrobank credit card, you can quickly request card cancellation at [email protected]. or call the contact center at 02 88 700 700 and (domestic toll-free 1-800-1888-5775).
Other tips you should know when you cancel your credit card
When you call your bank regarding the cancellation of a credit card, the customer support agent or officer will ask you why. Make sure it’s a valid one because they will likely offer you attractive promos to keep you in the loop.
If you’re canceling your card because of the annual fee, the officer might negotiate with you and offer a waived annual fee for life. If this is the case, then better think again if canceling the card is worth it.
Some banks will offer you better options and special promos, but if you think managing two or more credit cards isn’t helping you be financially savvy, tell them you don’t need the card anymore and remind them not to call you again.
If you’re not comfortable using credit cards anymore, other options like debit cards and prepaid cards still offer some rewards. Just make sure that you are fully aware of the terms and conditions before applying.
Once the bank approves your request and your card is successfully canceled, you should receive a notification that verifies your account is already closed. Record the date you received the confirmation as your reference.
Lastly, feel free to cut your credit card (in pieces), including the EMV chip, to make it won’t work anymore and throw it away. Congratulations! You are now one step closer to becoming more responsible in managing your finances.
Final Thoughts
It’s never a bad idea to review your credit card statements and ensure that everything is in order. If you’re not satisfied with the service or have been charged an annual fee for something you don’t remember signing up for, it may be time to start looking for a new one.
Canceling a credit card can be a big decision, but it’s not one to be taken lightly. You should do a few things before canceling your card, like reading the terms and conditions carefully and making sure you aren’t liable to pay anything if you terminate your contract early.
You may also check our previous blogs about credit card management and tips to ensure you are up to date with your monthly payments.
- The Best Balance Transfer Credit Cards – MoneySmart Philippines Review
- Use Your Credit Card Responsibly During a Pandemic – 7 Moneysmart Tips (2020)
- Reasons Why You Should Get a Prepaid Debit Card (MoneySmart 2020)
- Are You Financially Overextended? Here Are The Signs (2020)
Lastly, it would help if you also considered the consequences of canceling your card and its impact on your credit score. Let us know your thoughts in the comments below.