Closing an ICICI credit card might be necessary for various reasons, such as reducing debt, simplifying financial management, or avoiding annual fees. If you don’t know how to close ICICI credit card then you are at the right place. This guide will walk you through the different methods available to close your ICICI credit card, ensuring a smooth and efficient process.
ICICI Credit Card: A Closer Look
Before understanding how to close ICICI credit card, let us first discuss what an ICICI credit card is and its benefits.
What is an ICICI Credit Card?
An ICICI credit card is a financial instrument issued by ICICI Bank that allows you to make purchases on credit. Essentially, it acts as a line of credit, enabling you to spend money upfront and repay it later.
Benefits of an ICICI Credit Card
- Interest-Free Credit Period: Enjoy a grace period, typically around 50-55 days, during which you can make purchases without incurring interest. This gives you time to pay off your balance before interest is charged.
- Reward Points or Cashback: Many ICICI credit cards offer reward points or cashback on your purchases. These can be redeemed for a variety of benefits, such as discounts on shopping, travel, or dining.
- Airport Lounge Access: Some premium ICICI credit cards provide access to airport lounges, offering a comfortable and relaxing space to wait for your flights.
- Fuel Surcharge Waiver: Many cards offer a fuel surcharge waiver, saving you money on your fuel purchases.
- Travel Insurance: Some ICICI credit cards come with travel insurance coverage, providing financial protection in case of unexpected events like lost luggage or trip cancellations.
- EMI Conversion: Convert large purchases into monthly installments, making it easier to manage your expenses.
- Online Shopping Offers: Enjoy exclusive discounts and offers on online shopping platforms when you use your ICICI credit card.
- Bill Payment Facility: Pay your bills, such as electricity, gas, or mobile phone bills, conveniently using your credit card.
- Emergency Cash: In case of emergencies, you can withdraw cash from ATMs using your credit card.
- Building Credit History: Using your credit card responsibly can help build a positive credit history, which can be beneficial for future loans or credit applications.
Choosing the Right ICICI Credit Card
The best ICICI credit card for you depends on your spending habits and preferences. Consider factors such as annual fees, reward points or cashback offers, interest rates, and additional benefits when selecting a card.
Things to Consider Before Closing Your ICICI Credit Card
Before you close your ICICI credit card, there are a few things you should consider:
1. Check Your Outstanding Balance
Before you initiate the process of closing your ICICI credit card, ensure that you pay off any outstanding balance, including any pending interest, fees, or dues. A zero balance is mandatory before the card can be closed.
2. Redeem Your Reward Points
Many ICICI credit cards offer reward points for purchases made on the card. These points can be redeemed for various products, discounts, or even cashback. Make sure to redeem any remaining reward points before closing your account, as they may expire once the card is canceled.
3. Avoid Automatic Payments
If you have set up any recurring payments or EMIs linked to your ICICI credit card, you will need to transfer them to another payment method before you proceed with the closure. Not doing so can result in missed payments or penalties.
4. Understand the Impact on Your Credit Score
Closing a credit card can have an impact on your credit score, especially if it affects your credit utilization ratio or if it’s your oldest credit card. It’s important to understand how this might impact your financial health, and if possible, avoid closing cards with the longest credit history.
Methods to Close Your ICICI Credit Card
Here are multiple ways on how to close ICICI credit card:
Online Closure:
- Log in to your ICICI Bank account: Access your online banking portal using your credentials.
- Locate the “Cards” section: Look for the option related to your credit cards.
- Select “Close Card”: Choose the option to close your specific card.
- Follow the instructions: Provide any necessary details or reasons for closure as requested by the system.
- Confirm closure: Review the information and proceed with the closure request.
Mobile App Closure:
- Download the ICICI Bank mobile app: If you haven’t already, download the official app from your app store.
- Log in to your account: Enter your login credentials to access your account.
- Navigate to the “Cards” section: Find the option related to your credit cards.
- Select “Close Card”: Choose the option to close your specific card.
- Follow the on-screen instructions: Provide any required information and confirm your closure request.
Phone Banking Closure:
- Call the ICICI Bank customer care number: Dial the toll-free number provided on your credit card or the ICICI bank’s website.
- Request to close your credit card: Inform the customer care representative of your intention to close the card.
- Provide necessary details: Be prepared to provide your card details, account number, and any other information requested.
- Confirm closure: Verify the details and confirm your decision to close the card.
Branch Visit Closure:
- Locate your nearest ICICI Bank branch: Find a branch that is convenient for you.
- Visit the branch with your card: Take your credit card along with your identification proof.
- Request to close the card: Inform the bank representative of your desire to close the card.
- Complete the necessary paperwork: Fill out any required forms or documents.
- Submit the documents: Hand over the completed forms and your card to the representative.
Written Request Closure:
- Write a letter to ICICI Bank: Address the letter to the Customer Care department.
- Clearly state your intention: Clearly mention your desire to close the credit card.
- Provide your card details: Include your card number, account number, and any other relevant information.
- Sign and date the letter: Ensure that your letter is signed and dated.
- Mail the letter: Send the letter to the address provided by ICICI Bank.
Reasons to Close an ICICI Credit Card
Before diving into the steps of how to close an ICICI credit card, let’s first understand why you might want to do so. Some common reasons for closing a credit card include:
- High Annual Fees: Some credit cards come with high annual fees that you may not find justifiable if you are no longer using the card frequently.
- High Interest Rates: If you’re carrying a balance and are struggling with high interest charges, it might be time to reconsider your card.
- Card is No Longer Useful: If the card no longer offers any benefits or rewards that suit your lifestyle, you may want to cancel it.
- Consolidation of Debt: If you’re consolidating multiple credit cards into one, closing some accounts may be necessary.
- Improving Credit Score: If you’re managing too many credit accounts, closing one can help streamline your financial management and potentially improve your credit score.
Regardless of your reason, it’s important to approach the closure process carefully to avoid any negative impact on your credit score or future financial transactions.
How to Check If Your ICICI Credit Card Is Closed?
Once you’ve initiated the closure process, it’s important to verify that your card has been successfully closed. You can do this through the following methods:
- Online Banking: Log in to your ICICI Bank online banking portal or the ICICI Bank iMobile app. If the card is closed, it should no longer appear in your account summary or transaction history.
- Call Customer Care: You can call ICICI Bank customer care to inquire about the status of your card closure. Ask them to confirm that your account has been officially closed and that no further payments will be charged.
- Check Your Credit Report: You can also request a copy of your credit report after a few weeks. The closure of your credit card should be reflected in the report.
Impact of Closing ICICI Credit Card on Credit Score
While closing your ICICI credit card may seem like a straightforward process, it can have some implications for your credit score. Here’s how:
1. Credit Utilization Ratio
Your credit utilization ratio is the percentage of your total available credit that you are using. If you close a credit card, your total available credit decreases, which can increase your credit utilization ratio. A higher utilization ratio can negatively affect your credit score.
2. Length of Credit History
The length of your credit history plays a crucial role in determining your credit score. If your ICICI credit card is one of your oldest accounts, closing it may reduce the average age of your accounts, which can hurt your credit score.
3. Hard Inquiry
When you close a credit card, there are generally no hard inquiries on your credit report, as the closure is a voluntary action. However, if you apply for a new credit card or loan afterward, the lender may perform a hard inquiry, which could slightly impact your score.
To minimize the negative impact on your credit score, try to keep your credit utilization low and avoid closing accounts that are central to your credit history.
Alternatives to Closing Your ICICI Credit Card
If you’re looking to avoid the negative impact of closing your credit card, there are a few alternatives you can consider:
- Downgrading Your Card: If your card has high annual fees or features you no longer use, you can contact ICICI Bank to downgrade your card to a more basic, low-fee version.
- Suspending the Card: If you’re not planning to use the card but want to keep it open for future use, you can request the bank to suspend your card temporarily.
- Transferring the Balance: If you want to consolidate debt, transferring the balance to another card with lower interest rates could be a better option than closing the card.
Read More: How to Close IDFC Bank Account Online?
Wrapping Up
It’s a wrap on how to close ICICI credit card. I hope you understood the 5 ways to get rid of ICICI credit card with ease. Closing your ICICI credit card is a straightforward process that can be completed through various channels, including online, mobile app, phone banking, branch visit, or written request. By following the steps outlined in this guide, you can efficiently close your card and manage your finances effectively.
FAQs About Closing ICICI Credit Card
How long does it take to close an ICICI credit card?
The closure process typically takes a few business days to complete.
Can I close my ICICI credit card if I have an outstanding balance?
You may need to settle any outstanding balance before closing the card. However, it’s best to contact ICICI Bank directly to confirm their specific requirements.
Will closing my ICICI credit card affect my credit score?
Closing a credit card can slightly impact your credit score, especially if you have a long credit history with that card. However, the impact is generally minimal, especially if you have other credit accounts open.
Can I reactivate my closed ICICI credit card in the future?
The reactivation process may vary depending on the circumstances. It’s advisable to contact ICICI Bank directly to inquire about the possibilities.
What happens to my credit card rewards or points after closing the card?
Any accumulated rewards or points may be redeemed or forfeited according to the terms and conditions of your card. It’s important to review your card agreement for specific details.