How to Close BOB Credit Card

Bank of Baroda offers a variety of credit cards designed to meet diverse individual needs. If you wish to cancel or temporarily deactivate your BOB credit card, whether to opt for a better-suited card or due to lack of use, there are various channels accessible, both online and offline. This manual provides comprehensive details on the steps required to close your Bank of Baroda Credit Card account.

Steps to Close Your BOB Credit Card Account:

  1. Draft a notice or application addressed to Bank of Baroda expressing your desire to close your credit card account. Clearly state the reason for closure.
  2. Cut your credit card and any additional cards into multiple pieces and include them with your notice when returning them to the bank.
  3. Prior to requesting cancellation, make sure all outstanding balances and dues from previous billing cycles are fully paid off. Failure to clear dues could lead to the bank refusing your closure request.

Things to Check Before Closing Your BOB Credit Card:

  1. Clear Dues: Before proceeding with the cancellation request, ensure that there are no remaining dues on the Bank of Baroda credit card.
  2. Cancel Automatic Payments: Make sure to halt any automatic payments or subscriptions tied to the credit card to prevent future charges.
  3. Confirmation: Request written confirmation from the card issuer detailing the closure date for your personal records.
  4. Credit Score Impact: Be aware that closing a credit card may have adverse effects on your credit score, as it could decrease your credit limit and average credit history length.

RBI’s Guidelines for Credit Card Closure:

  1. Timely Closure: Credit card issuers are required to close accounts promptly, within 7 working days upon receiving a closure request, as long as all outstanding balances are settled.
  2. Penalties: Failure to close accounts promptly can result in penalties for issuers, with fines amounting to Rs. 500 per day for delays after the receipt of a closure request.
  3. Inactive Cards: If a credit card remains unused for a year, the issuer will deactivate it, and if there is no response from the cardholder, the account will be eventually closed.
  4. Closure Channels: Multiple avenues should be provided for submitting closure requests, such as mobile banking, online banking, helpline, IVR, email, and mobile app.
  5. Credit Transfer: Any remaining credit left on the closed account must be transferred to the cardholder’s bank account.
  6. Credit Bureau Notification: Issuers are obligated to inform the credit bureau about the closure of the account within 30 days.

Consequences of Closing Bank of Baroda Credit Card:

  1. Credit Score Impact:
    • Closing a credit card can harm your credit score by reducing your available credit limit and average account age.
  2. Credit Utilization Ratio:
    • Closing a card raises your Credit Utilization Ratio (CUR), signaling to issuers that you’re seeking more credit, which can be viewed negatively.
  3. Credit History:
    • Closing a card shortens the average age of accounts on your credit report, impacting the length of your credit history.
    • Missed payments on closed cards linger on your report for an extended period, affecting your credit history.

Frequently Asked Questions (FAQs)

Q. How do I go about closing my Bank of Baroda credit card?

A. To close your BOB credit card, simply submit a written request to the bank expressing your desire to close the card account.

Q. What should I include in my written request for closing the credit card?

A. In your request, make sure to state your intention to close the card account, mention any reasons if applicable, and also specify if you have any additional cards linked to your account.

Q. Do I have to return the physical credit card to the bank?

A. Yes, it’s necessary to return both the physical credit card and any supplementary cards to the bank. Be sure to cut them into pieces before sending them back.

Q. Do I need to clear any outstanding payments before closing the card?

A. Certainly, it’s important to settle all outstanding balances and dues from previous billing cycles before initiating the closure process to avoid any complications.

Q. What should I do about automatic payments or subscriptions linked to my BOB credit card?

A. Cancel any automatic payments or subscriptions associated with your credit card to prevent any future charges after the closure is processed.

Q. How will I know if my closure request has been successfully processed?

A. You should receive written confirmation from the card issuer confirming the closure date and providing any additional instructions if necessary.

Q. Will closing my BOB credit card impact my credit score?

A. Yes, closing a credit card can potentially lower your credit score as it reduces your available credit limit and average account age.

Q. What are the RBI’s guidelines for credit card closure?

A. According to RBI regulations, credit card issuers are required to close accounts within 7 working days of receiving a closure request, provided all outstanding amounts are settled.

Q. Are there penalties for delays in closing the credit card account?

A. Yes, issuers may incur fines for failing to close accounts promptly after receiving a closure request, as outlined by RBI guidelines.

Q. Am I able to move any remaining balance from the closed account to my bank account?

A. Absolutely, any remaining credit on the closed account should be transferred to your bank account in accordance with RBI regulations.