Credit cards are important to building and maintaining a good credit report. It allows users to spend for free, earn rewards and enjoy discounts and benefits. Today, applying for a credit card and getting one from the comfort of your home has become very simple. ​​​​​​However, if you have several, it can be difficult to remember due amounts, due dates, and annual maintenance fees.

An easy way to fix this is to cancel a credit card that you don't use often. Well, of course, it's not easy to cut it in half with scissors. There are several steps you need to take to cancel your credit card. Canceling your credit card can lower your CIBIL score, especially if you have only one credit card. So what do we do next? Well, before you rush to cancel your credit card, consider the following:

- Pay off any remaining debt

Before you halve your credit card, make sure you pay all dues in full. Cancellations or applications cannot even be submitted without waiving all dues. If you can't pay it off financially, transfer it to another credit card or take a personal loan and get rid of all debt.

- Redeem all your benefits/rewards

Credit cards often offer great rewards in the form of reward points that can later be redeemed for travel, shopping, and more. However, when the card is closed, all the privileges and rewards that the card receives, along with all the additional benefits, disappear. So before canceling your credit card, check your reward points and try to see if you can exchange them for a statement credit. It will reduce your outstanding amount.

- Cancel all automatic payments

Log into your bank website and cancel all automatic payments for utilities, subscriptions, and more. If you forget to do this, the company may still charge you to lock your credit card. It will eventually fail, so you will lose your payment. This can lead to late fees being charged by the utility.

- Notify your bank/credit card issuer

Once you have paid all the dues and redeemed the offer, please contact your bank or credit card issuer and inform them that you will close your credit card. To convince you and convince you not to turn it off, it offers you many benefits like more reward points or lower interest rates, etc. But if you really want to close your credit card, make sure you have a stable state of mind.

- Check your credit score.

Once you receive final confirmation from your bank or company that your credit card has been canceled, check to see if it has been permanently removed from your credit report. It can take 4 to 6 weeks (about a month and a half) to appear on your credit report. If there are any discrepancies, please contact your card company or file a complaint with a credit bureau.