If you are wondering how to close a healthcare credit card then this article will help you do so. But, before closing a credit card, you must follow the basics. Mostly, all banks offer this type of credit card but, the closing methods remain the same.
You have to carry out the closing process carefully to avoid any losses like fees or loss of hard-earned medical expenses rewards.
In this guide, we will cover all the steps to close your healthcare credit card (credit card for medical expenses) without incurring any losses. However, we need to provide some basic information about cashback healthcare credit cards.
What is a Cash Back in Healthcare Credit Card?
A cash-back healthcare credit card for medical expenses is classified as healthcare-related expenses. These cash-back credit cards are a popular choice for customers due to their beneficial features. It offers to credit a percentage of the amount spent on your purchases back into your account.
You can take cashback as a statement credit, direct deposit, or gift card. Taking advantage of medical expenses with a cash-back credit card can be a smart and strategic move. But, if you need to close your credit card for some purpose, how can you do it online?
Steps to Close Your Healthcare Credit Card
If you have decided to close your healthcare credit card and have no hesitation in your mind, then you need to follow the 7 important steps given below:
1. Pay off Any Balance
Closing a credit card always starts by settling any outstanding balance. Often credit card issuers allow closing with existing balances. It is a good practice to pay the full amount to avoid additional charges. Use balance transfers if necessary and ensure all automatic payments are updated to prevent any service interruptions.
2. Redeem Any Rewards
If you have rewards, such as cashback or points systems, try to maximize your benefits before closing the account. Review your redemption terms for your card – whether it’s transferring points to loyalty programs or accumulating cash back.
These types of credit cards offer flexibility to redeem the cash you earn. You can apply for cashback directly to your outstanding balance, or account which may reduce your medical bills. Failure to redeem rewards before closing may result in the forfeiture of your hard-earned benefits.
3. Send a Cancellation Letter
A phone call is enough to close a credit card, but sending a cancellation letter is an important step. State your intention to close the credit card account and that it is at your request.
You need to include essential details such as your name, address, phone number, account number and specifics of your call with a bank representative.
Send the letter via certified mail for documentary delivery and request a written confirmation of closing the account with a $0 balance.
4. Call your Bank
You will need to contact the customer service number on the back of your credit card to initiate the closure process. Before expressing your wish to close your account, double-check whether your balance is zero or not.
Expect retention offers from the representative and firmly confirm your decision to close your healthcare credit card. Note the date, time, and name of the representative and request a mailing address for the next step.
5. Check Your Credit Report
It may take a month or more for your credit card closure to appear on your credit report. Once updated, check the report to confirm that it is accurately recorded as “Discontinued at consumer request” or similar.
If an incorrect reason, such as “Discontinued by Issuer”, appears, contact your bank immediately to rectify any potential negative impact on your credit score.
6. Destroy Your Credit card
Once you have account confirmation in hand that confirms your credit card account has been closed, dispose of your old credit cards.
If it is a plastic card, cut it into small pieces, and for metal cards, contact your bank to request a prepaid envelope for a secure return.
7. Monitor for Residual Charges
After closing your credit card, monitor your accounts for any remaining charges or automatic billing associated with the closed card.
Update your payment information for any subscriptions or automatic payments to avoid service interruption or late fees. Staying vigilant during this transition ensures a seamless adjustment to your new financial setup.
How to Close a Credit Card Permanently?
You can permanently close your credit card account by contacting your credit card issuer. Request a written confirmation that your balance is $0 before closing.
It takes 30 to 45 days after cancellation, check your credit report. You want to see a report that the account has been closed by the cardholder and the balance is $0.
Conclusion
We have mentioned all the official information regarding closing the healthcare credit card by following the above 7 strategic procedures. So, by following the seven steps, you can confidently proceed with the closing process, protecting your credit score and avoiding any unwanted financial losses. Remember, a well-executed closing ensures that you are not left behind and move forward financially with peace of mind.
FAQ
The main step to close your credit card is that your account balance should be zero.
The easiest way to close a credit card is to contact the customer service center and tell them firmly that you want to close it.
Yes, you can close your credit card account permanently. Simply, send a mail to the authorized bank address, or you can download the credit card closure form online. Fill out the form and send it to the official address.
Source – www.forbes.com
