The existence of a credit card is very useful when we want to shop or get additional discounts when promoting a product / service. However, not all people actually survive with these plastic cards. There are people who just want to close their credit cards because they think credit cards only make them more tempted to shop, and are afraid they can’t pay their bills afterwards. If you are one of them, let’s look at how to easily close the credit card below:
Reasons for wanting to close a credit card
Quoting from Detik Finance , the use of credit cards in Indonesia is still low, which is 17 million or less than 10 percent of the total Indonesian population of 250 million. Even though the Government through Bank Indonesia is increasingly intensified so that the Indonesian people use the card by applying a maximum credit card interest rate of 2.25% per month; but it seems that there are still people who choose to find out the steps to close the credit card that they already have. Here are some common reasons:
- Not able to pay off bills and always pay with minimum payment
Tired of overcoming bills that don’t stop every month can be the main reason why someone wants to close their credit card. Usually those who have bills that are out of bounds and cannot be controlled anymore will get around payment of bills by paying minimum payment . This step certainly will not help them to be free from debt faster, and finding an easy way to close credit cards can be the most appropriate step.
- Have too many credit cards
The second reason you want to close your credit card is because you have too many credit cards and don’t want to be negligent in paying. Actually this cannot be the main reason why someone should close their credit card, but generally card owners who are afraid of being negligent in paying bills will choose to close their credit cards. This is because negligence in paying bills can cause delays and affect the Historical IDI score.
- Ever Become a Fraud Victim
The rise of fraud that often occurs also targets credit card holders. Credit cards can be used by irresponsible parties to pay a number of bills. Some cases that occur for example with credit cards whose data is stolen by individuals when making transactions in restaurants , become victims of phishing, etc. Trauma that arises because of an unpleasant event can have an impact on the desire of the card owner to close his credit card.
- Rarely Use a Credit Card
The next reason is because cardholders rarely use credit cards. The lack of transactions carried out every month does not have an impact on your obligation to pay a fixed fee. There are a number of fees that must be paid every month or year, such as annual card fees or stamp fees. These costs are indeed not much, but for those of you who feel you don’t want to pay a fee for something that is rarely used, of course it can trigger to submit a credit card closing.
How to close a credit card
1. Pay Remaining Debt that Is Still Running
An easy way to close your credit card is to pay off the remaining debt. You must still pay the remaining remaining liabilities because the bank will not just close without the nature of the responsibility of the card owner. Payments that must be paid include transactions with interest, stamp fees, and annual fees to be paid. Failure to pay the remaining debts that are still ongoing can have an impact on your credit score in the Historical IDI. Even if you have not used the card at all, you will be noted to have poor collectability.
2. Spend Rewards that You Have
If you still have points or rewards, don’t waste it. Rewards can be in the form of money you can spend. If while using the card you never use the reward, it is very likely that you can shop for free. Meanwhile, for those of you who have a credit card with a point system, don’t forget to redeem these points with objects that have been prepared by the bank. Do not miss, if you ever shop and use the cashback facility, don’t forget to check your credit. Ask the bank to transfer to your bank account, rather not to use the remaining debt on a credit card that is still running?
3. Contact the Credit Card Closing Party
The way to close the credit card after that is to call the bank. You can contact the bank call center where you issued your credit card and ask for the closing of the card. Usually the bank will provide a step to close the credit card that you can do, and still will ask you to visit the nearest branch to complete the requested requirements. Don’t forget to convey the reason you want to close the credit card. Get ready with bank offers so that you still use a credit card. The thing that can be done is to stick to the establishment so that the credit card closure can be processed immediately.
4. Disable Bill Payment through Auto-Debit Your Credit Card
Some types of payments can indeed be directly billed to your credit card, such as payment of electricity bills, sports club subscriptions, cable tv, postpaid cellphone numbers, and other bills. The best way to close a credit card is to not forget to deactivate the payment. Be sure to contact the relevant company and inform them that payment is no longer done via credit card. Look for other payment options so that you can still use the service or product (if it’s still needed).
5. Request a Credit Card Closure Proof Letter
The last step to close a credit card is to ask for a proof of credit card closing. Written evidence like this is important to have as a preventive step if something unwanted happens. You can use this evidence if only one day you are still asked to pay a number of bills aimed at your credit card bill. Show proof that you have deactivated the card in order to avoid unnecessary obligations.
The Main Problem When You Want To Close Your Credit Card = Not Being Able To Pay Remaining Debt That Is Still Running
How to close a credit card is actually not difficult, but often the problem encountered is the inability of the card owner to pay off the remaining debts that are still running. The step you can take is to use a relief program to pay off credit card bills with a one-time discount or low-interest installments with extended tenors. You can get this relief program through a company that provides a debt management program.
Companies that provide debt management programs will help you to provide the best strategy so you can be freed faster from debt. This can be done by looking at the ability to pay and the financial conditions that you are facing. Why so? Because companies like this are usually filled by a team of professionals and more experienced in negotiating with the bank so that you can get a better program for you.
Pearl International is the first technology-based professional services company in Indonesia, which provides a debt management program. This program is designed so that consumers who are in debt, have the ability to control their finances again. Pearl Indonesia helps clients through debt management programs, specifically designed to suit different needs for each client. This program is a combination of education on various opportunities to increase income and reduce expenditure, as well as conduct negotiation processes on existing bank debt requirements to reach the amount of payment that is in accordance with the ability. Pearl Indonesia headquarters was established in Jakarta in 2015 by a founding team that has collective experience in the financial sector including debt settlement for more than two decades. Pearl has made Indonesia the center of operations as well as a blueprint for the company’s development plans to other ASEAN countries. Since July 2016, Pearl Indonesia has become the first company in Asia to be accredited by the International Association of Professional Debt Arbitrators (IAPDA).