What to do when you want to cancel your credit card?

Since our Prime Minister announced the RM 50 service tax for credit card in the new Budget 2010, a lot of credit card user has been cancelling their credit card. I have shared some Sample Credit Card Cancellation Letter in my other post since some of the bank may ask you to write in letter to cancel your credit card. However, before you want to cancel your credit card, there are something that you may want or required to do first.

Below are some of the things you are required or might want to do before you submit your cancellation form or letter.

Redeem your credit card reward points/cash rebates
Since you've earned all those reward points or cash rebates, you don't want to waste it all when you cancel your card. So make sure you use all your points/cash to redeem something before you cancel your card.

Inform your merchant about the cancellation
I'm sure we do use our credit card for auto debit or standing instructions where the merchant or company will charge the amount to your credit card on a monthly basis such as your insurance premium, your telephone bill or even your Astro bill. If you do have such auto debit, you must cancel it by writing or by calling them.

Clear outstanding balance/full settlement for flexi installment plan
This is definitely a required thing to do if you want to cancel your credit card. Any outstanding balance or installment plan must be settle in full before you can cancel the card.

After all of the above has been done, then you can either write-in / walk-in / call-in each credit card center to cancel your card. My suggestion is to try call-in first as it is the most convenient way. Write-in or walk-in only if you're required to. The customer service phone number of the bank will be at the back of your credit card.

Lastly, you will need to follow-up on the cancellation. This is also important especially when you did not receive any confirmation from the bank regarding your cancellation. Call the bank to ask about your cancellation status to make sure the process has been done.

After all of the above has been done, you can breathe a sigh of relief as you will have saved yourself RM 50.