Thinking of ditching your credit card in the UAE? Whether you’re looking to simplify your finances or avoid temptation, cancelling a credit card can be smart. But navigating the cancellation process can be tricky.
This guide will walk you through everything you need to know to smoothly cancel your UAE credit card, ensuring a clean break and avoiding any hidden fees.
Before You Cancel: Essential Preparations
Before waving goodbye to your credit card, there are a few key steps to ensure a smooth and hassle-free cancellation process. Here’s what you need to do to get ready:
Settle Any Outstanding Balances
This one is crucial. You can’t cancel a credit card with a remaining balance. Make sure you settle all your outstanding dues, including any recent purchases that still need to show up on your statement.
Unpaid balances will not only prevent cancellation, but they can also lead to late fees and hefty interest charges that can quickly snowball.
Redeem Your Reward Points (if applicable)
Many credit cards in the UAE offer reward programs that allow you to earn points on your purchases. These points can be redeemed for exciting rewards like travel miles, cashback, or merchandise.
But here’s the catch: some programs cancel your points when you close the account. So, before you say goodbye to your card, check your program’s terms and conditions and redeem any accumulated points to avoid losing out on valuable rewards.
Foreclose on Installment Plans
If you’ve set up any instalment plans on your credit card, like for a large purchase, make sure to close them out before attempting cancellation. These plans essentially break down a significant payment into smaller, more manageable chunks.
However, cancelling the card itself might disrupt the plan and lead to immediate full payment demands. Contact your bank and ensure all instalments are settled, or the plan is terminated before proceeding with the cancellation.
Cancellation Methods
Now that you’ve prepped for cancellation, it’s time to choose your preferred method. Here are the common options offered by most banks in the UAE:
Online Cancellation (if available)
The digital age brings convenience to many aspects of life, and credit card cancellation can be one of them. Some banks in the UAE allow you to cancel your card directly through their online banking platform or mobile app. This is often the quickest and easiest option.
Look for a dedicated section for account management or credit card services. Once logged in, you might find a cancellation request form or a simple button to initiate the process.
Cancellation via Phone Call
If your bank doesn’t offer online cancellation, or you prefer a more personalised approach, contacting them directly by phone is another option. A customer service representative can guide you through the cancellation process and answer any questions.
Be prepared to provide some information during the call, such as your account details, card number, and possibly a reason for cancellation (though only sometimes required).
Written Cancellation Request
Submitting a written cancellation request for banks that lack online options remains a valid method. You can download a cancellation form directly from the bank’s website.
Alternatively, you can call customer service and request a form to be sent via email or mail. Once you’ve filled out the form with the required details, submit it according to the bank’s instructions, which might involve mailing it back or submitting it in person at a branch.
Following Up and Confirmation
Don’t just hit submit and forget it! Following up with your bank after submitting a cancellation request is crucial to ensure everything goes smoothly.
Cancellation processing times can vary depending on the bank, but typically, it takes anywhere from a few business days to a couple of weeks. It’s wise to check with your bank about their estimated timeframe for processing cancellations.
Here’s why following up is important:
- Confirmation is Key: You want to be certain the cancellation request has been received and processed. A phone call or email to customer service can confirm the status and provide a specific closure date.
- Catching Errors: There’s always a chance of a mix-up, especially during manual processing. Following up allows you to address any errors or missing information that might delay cancellation.
Don’t settle for assumptions. Ensure you receive written confirmation from the bank via email or a mailed statement stating that your credit card account has been closed. This serves as a record for your reference and protects you from any unexpected charges.
Post-Cancellation Considerations
Saying goodbye to your credit card doesn’t necessarily mean saying goodbye to the next statement. It’s common to receive a final statement after cancellation detailing any remaining charges or credits that need to be settled. Pay any outstanding balance shown on this final statement to avoid future issues.
Once the cancellation is complete, it’s wise to keep a copy of the confirmation email or closure notification from the bank for your records. This serves as proof of cancellation and can be helpful in any disputes or unexpected charges that might arise later.
Exploring Alternatives
Cancelling a credit card can be a positive step towards financial management. But it also means having a backup plan for your purchases. Consider alternative payment methods that align with your financial goals. Debit cards, for example, offer the convenience of a card but limit spending to the available funds in your account, promoting responsible spending habits.
Conclusion
Cancelling a credit card in the UAE can be a straightforward process with the right preparation and approach. By following the steps outlined in this guide, you can ensure a smooth cancellation and avoid any potential issues.
Remember to settle outstanding balances, redeem rewards points, and close instalment plans before initiating the cancellation. Choose your preferred method, whether online, by phone, or through a written request. Remember to follow up for confirmation and keep records of the closure for your peace of mind.
