The State Bank of India (SBI) is India’s largest lender, and it offers a variety of credit cards with varying rewards and features. If you decide that your SBI credit card is not for you, you can easily cancel it by phone or in writing to SBI. Your cancellation request will not be processed until your balance is zero.
Part 1 Checking Your Account Status
1. You can access your account online. To access your account, go to https://www.sbicard.com/ and click the login button at the top of the page. If you haven’t already done so, click the link below the login button to sign up as a new user.
To register as a new user, enter your card number, CVV number, and date of birth. If you don’t have your card number handy, call the SBI Card Helpline at 1860-180-1290 for assistance.
2. If you haven’t used your card in a while, make sure your account is still active. SBI reserves the right to terminate credit card accounts at any time. If your account is inactive, it is possible that SBI has cancelled it without your knowledge.
Banks are not permitted by law to charge additional fees for inactivity. As a result, SBI may close an inactive account that isn’t generating any revenue for the bank.
3. Make your account balance zero. SBI will not cancel your card until your balance is fully paid. To find out how much you owe, check your account balance online. Check for any pending charges if you’ve recently used the card.
Before you pay your balance in full and cancel your card, carefully review the most recent statement to ensure there are no fraudulent transactions. You may not be able to get your money back if you don’t notice a fraudulent transaction until after you’ve cancelled your card.
If you have a large balance on your card, pay it off in instalments over a few months rather than paying it off all at once. A large repayment may harm your credit score.
4. Transfer any recurring payments to a different card. If you’ve made any automatic payments with your SBI card, contact those businesses and either cancel your automatic payments or provide a different payment method. Before cancelling your card, double-check the date of the automatic payment to ensure it will not go through.
It may take a few days for some companies to process changes to automatic payments, or the change may not take effect until the next billing cycle. Before cancelling your card, double-check the dates.
Tip: If you have an outstanding balance that you’re paying off over time, it’s a good idea to cancel any recurring payments so they don’t keep adding to the balance while you’re trying to pay it off.
5. Check to see if any payments you made have been posted to your account. Before cancelling your card, go back to your online account and double-check that the balance is zero. Examine recent transactions to ensure there are no pending charges that you may have missed.
It’s a good idea to stop using your card while you’re paying off your balance or after you’ve made your last payment. That way, you’ll know there aren’t any new charges on the horizon.
Part 2 Closing Your Account
1. Before you close your account, check your credit report. To obtain your free CIBIL score and report, go to https://www.cibil.com/freecibilscore and create an account (Credit Information Bureau India Limited). To create an account, you must provide personal information such as your date of birth, address, and PAN card or Aadhar number.
Examine your credit report, paying special attention to the amount of credit you have available and the amount you are using. If you cancel your SBI card, you will have less credit available to you, which may lower your credit score.
If you only have one credit card and cancel it, it may not initially lower your credit score. However, without that continuous credit history, you may have difficulty opening another credit card.
2. Contact SBI customer service by phone or in writing. While some Indian banks require cancellation requests to be submitted in writing, SBI accepts cancellation requests over the phone. 1860-180-1290 is the phone number to dial. This information is also printed on the back of your credit card.
Send a letter to SBI Card, PO- Bag 28, GPO, New Delhi-110001 to request cancellation in writing. Declare in your letter that you want to cancel your card. Please include your full name, address, credit card number, and contact information. Include no sensitive information, such as your PIN or the CVV number on your card.
When cancelling by phone, you may be given a cancellation reference number. Make a note of it and keep it somewhere safe in case the cancellation fails or you have any questions.
When you request cancellation of your primary SBI card, any add-on cards are automatically cancelled.
3. After submitting your request, cut your card diagonally. SBI requires cancelled cards to be cut diagonally from the bottom left to the top right corner. After you’ve cut the card, you can throw it away however you like.
Unlike some banks, SBI does not require you to return the cut card.
Even if it will be a few weeks before your cancellation is effective, do not use your card after you have requested cancellation. This could cause the cancellation to be postponed.
4. You will be notified of your cancellation. When you submit a request to cancel your card, SBI will usually send you a letter confirming the date your card will be cancelled. The bank may hold the cancellation for a few weeks to ensure that no new charges are made. Typically, your confirmation will include your final credit card statement.
If you close your account in the middle of a billing period, you may receive one additional statement. However, if you receive any statements more than 30 days after cancelling your card, contact customer service.
5. Any unused reward points must be redeemed within 45 days. When you cancel a credit card from some banks, any reward points you accumulated but did not redeem are simply erased. SBI, on the other hand, gives you 45 days to redeem those points before they expire.
The points can be redeemed for items from the bank’s reward catalogue or for discounts. If you redeem points for discounts after cancelling your card, make sure you aren’t required to use your card to make the purchase.
Part 3 Protecting Your Credit
1. Use your credit cards on a regular basis. When credit cards go inactive for months at a time, it can have a negative impact on your credit score. The simplest way to avoid this is to charge a small recurring bill that you normally pay each month to the credit card, then pay the credit card bill.
You can also organise your finances so that you use specific credit cards for specific categories of purchases. This can be aligned with the rewards you receive. If you have a credit card with travel rewards, for example, use it when booking flights or hotel rooms.
Paying off your credit card balances on a monthly basis is generally better for your credit than carrying an unpaid balance from month to month.
2. Maintain a credit card and loan balance. A mix of credit types is better for your credit score than a large number of unsecured credit cards. If you have a lot of credit cards but no loans, you should consider getting a personal loan from your bank. You can save the money in a savings account and repay it monthly. It will cost you some money in interest payments, but it will help you build your credit.
Another way to keep a credit balance is to get a mortgage on a house or a car loan to finance the purchase of a car.
3. At least once every six months, review your credit report. To check your credit report and score for free, log in to your account at https://www.cibil.com/freecibilscore. If you notice any errors or incorrect information, please contact CIBIL so that the error can be corrected.
You can also work with the lender who supplied the incorrect information to have it corrected. Sometimes it’s as simple as a typographical error that can be quickly corrected.
4. Maintain a credit utilisation of less than 30%. Your credit usage is the ratio of the amount of credit you use to the total amount of credit available to you. You should ideally pay off your credit card balances each month. However, if you must carry a balance due to unforeseen circumstances, any balance greater than 30% will lower your credit score. #* Revolving accounts are used to calculate credit usage. Typically, these are credit cards with a credit limit that you can spend up to. The credit becomes available again as you make payments. Loans that you are simply repaying over time are not counted in your credit usage.
5. Make timely loan and credit card payments. Late payments will harm your credit score. Mark your due dates on a calendar or set a reminder on your phone or computer to avoid forgetting to pay your bills.
You may be able to set up automatic payments as well. Even if you do this, make sure you know how much you’ll be paying each month and check your statement every couple of weeks for errors or fraudulent transactions.
Tip: Don’t skip a payment because you disagree with a transaction that was posted to your account. Your money will be refunded if the charge is reversed. However, if you fail to make the payment, your credit rating may suffer.
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