How to close a credit card

What difficulties might arise when closing a credit card?

The procedure for closing a credit card differs somewhat from repaying a regular loan. While with a loan the borrower simply needs to pay off the debt amount and accrued interest, doing this will not be enough in the case of a credit card. Cardholders who simply pay off the used credit limit often discover accumulated debt and associated penalties and fines a while later. Let us explain why this happens.

A credit card is merely a payment instrument. In reality, all transactions are processed using a credit account. As you understand, simply destroying the card will not close this very account. The same applies to an expired credit card.

Why might a debt accrue on a closed credit card?

Sometimes cardholders discover accumulated debt even after closing and not using the card. Where it can come from:

1. Due to the write-off of the card maintenance fee. As long as the credit card is active, the bank will charge a monthly or annual fee if its terms of agreement provide for it.
2. Due to the write-off of fees for additional services, such as SMS transaction alerts or insurance. Such options do not disappear when the card is unused — they must be disabled manually.
3. Due to the accrual of interest on purchases already made. This happens when banks calculate the overpayment for using funds not in the current period, but in the next one.

Even such small charges as SMS alert fees or annual maintenance lead to a negative balance. If the debt is not repaid on time, the bank additionally charges fines and penalties on the amount.

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Why is it mandatory to obtain a credit card closure certificate?

It is not mandatory to obtain a credit card closure certificate — a client may simply not come to the bank to collect it after closing the account. However, this document serves as proof of the termination of obligations to the credit institution and can be used in court in case of erroneous debt accrual.

We still advise not to neglect the recommendations of lawyers and to obtain such a certificate. You should keep the document for three years from the date the credit card is closed — this is the statute of limitations established for civil cases.

How to properly close a credit card?

You can close a credit card in four ways: at a bank branch, via the hotline phone, through online banking, or via the mobile app. Let us discuss each option in a bit more detail.

At a bank branch

To deactivate a card at a bank branch, you need to:

• come directly to the bank branch with your passport, credit agreement, and card;
• announce your intention to close the credit card to an employee;
• fully deposit the amount required to repay the debt to the bank.

Keep in mind that the account is not closed immediately, but 1-2 months after applying to the bank. This period is necessary for the credit institution in case any unrecorded credit card transactions are discovered. Upon expiration of the specified period, you must visit the branch once again and obtain a card closure certificate. 

By hotline phone

Not all banks allow you to close a credit card via the hotline phone. However, this option is available in almost all major institutions. To block the credit card, you must first call the hotline and verify your identity using a code word or passport data. Then you need to inform the employee about your intention to close the card and deposit the amount to fully repay the debt to the bank.

Even in this case, you will need to visit a bank branch to obtain a certificate of credit card deactivation.

Via online banking or the mobile app

The procedure for closing a credit card via online banking and the mobile app is almost identical:

• first, you need to check the debt owed to the bank and pay it off by transferring funds to the account;
• next, go to the card settings and select "Block" or "Close account";
• fill out the form;
• submit the credit card closure application.

After the specified period, you will also need to request from the bank a certificate of credit card closure and absence of debt to the organization.

Answering frequent questions

To conclude the article, we will answer the most frequently asked questions on the topic.

Do I need to close a credit card if its expiration date is approaching?

As we mentioned above, even if the card has expired and you have not applied for reissuance, the bank will continue to service the credit account. Therefore, debt will continue to accumulate until you contact the institution yourself.

Can I close a credit card with current overdue debt?

No, not a single bank will close a credit card until you fully fulfill your obligations as a borrower.

How do I close a credit card if it is lost or stolen?

In this case, simply block the card in your mobile app and immediately apply for a re-issue. You can also call the hotline to report the lost or stolen credit card.

Do I need to close an unactivated card?

Most banks do not require closing unactivated cards. If you received a credit card but did not activate it, your credit account remains inactive. Accordingly, blocking the card and closing the account are not required.

However, some banks, aiming to maximize profit, provide for automatic credit card activation. Therefore, even if you have never used the card, you will have to close the account.