Having a credit card has become very essential these days and that is why people sometimes take their decision in a hurry without actually doing thorough research on what type of credit card they want. This might also have happened to you when you applied for a credit card, got approved for it, and then realized that this is not a good choice for you. In such a case, you would surely want to get rid of that card and get another one that suits your requirements and spending habits. Sometimes you get approved for a credit card of your choice, but your card issuer closes your account. Whatever the case is, it is necessary to understand whether a credit card can be closed after being approved or not. We will help you understand the same with this article. Keep reading for further information:
What Do You Mean By Being Approved For a Credit Card?
Some people consider pre-approval the same as approval for a credit card. But, both the terms are a bit different. Banks or card issuers may send you pre-approved credit card offers when you fulfill their basic eligibility criteria. However, the final decision is made by the issues only when you apply for that card and they check your credit profile thoroughly. On the other hand, approval is confirmation that you are going to receive a particular credit card. When you apply for a credit card, the card issuer checks your basic eligibility, income, credit score, etc, and then they approve or reject your application. If you fulfill all their requirements then only you get approval for a credit card.
Can a Credit Card be Closed After Being Approved?
Yes, it is possible to close a credit card after you get approved for it. The card issuer as well as the cardholder have the right to get a credit card closed if they find it suitable. Let us understand both cases in detail:
From Card Issuer’s End
When you get approved for a credit card, it doesn’t mean that you will always be able to use it even if you are not responsible enough. Sometimes card issuers approve your application, but if you don’t use your card responsibly, they might consider you a risky borrower. If you miss or delay your credit card bill payments very often, there is high chance that your bank will cancel your credit card or they will at least reduce your credit limit. Therefore, if you don’t want to get your credit card closed, make sure to pay all your bills on time and maintain a good credit score so that you only get better offers with time.
From Cardholder’s End
If you just got approved for a credit card and you realised that this is not a very good option for you, you can always get your card canceled by contacting the issuer. Just make sure that there is no outstanding balance on your credit card. It might also happen that you got approved for a credit card and then you got a better offer from another issuer. In such a case, what you can do is just try to continue with both accounts if you think you can manage multiple cards. It will help you maintain a healthy credit utilization ratio, which further improves your credit score. Otherwise, just request your card issuer to close your account.
Closing a credit card is not a very good idea until that is really of no use. If your existing card does not have a very high annual fee, you can consider using it along with another credit card. Closing a credit account affects two very important factors that make your credit score: your credit utilization ratio and the average age of your credit accounts. So, just keep all these things in your mind whenever you think of canceling a credit card account. You can also request your current card issuer to upgrade your credit card to another card of your choice if it is possible. In case of any further doubts regarding the information given above, feel free to ask us in the comment section below!