How Did my Credit Card Still Get Charged if I Was Disconnected?

Most people think assume that if they do not use their credit card, they will not be levied any charges on their credit card. So, many people cut their credit cards into two and dispose it. However, until you officially close your credit card by contacting your credit card provider, you will still be responsible for the credit card.

Even when you do not use your credit card, there are many charges that can be levied on your account like the renewal fee, any standing instructions set by you when you were actively using the card, any subscriptions you enrolled, and your insurance premiums if you had instructed to be auto-debited from your credit card.

If you got a credit card statement for a card you no longer use, get in touch with your bank and ask them to cancel it. However, you will be liable to pay the total outstanding balance on your card in order to close it. Most of the credit card providers India would ask you to send a written notice to cancel a credit card. However, there are a few credit card providers who allow you to close a credit card online or through phone banking.

Make sure you have cancelled all auto-debit transactions before you cancel your credit card. Also, check your credit score to make sure this particular credit card is not affecting your credit score. You can get a free copy of your credit score for free once a year from each of the credit reporting agencies in India namely, TransUnion, Equifax, and Experian. You can also get a detailed copy of your credit report for free from one of the neutral financial advisory websites like BankBazaar. Take the time out to check if you credit card still appears under unsecured loans in your credit report and close it if it does. After you close your credit card, check your credit report after a month to make sure this item has been excluded.

An unused credit card is not a good component in your credit report. It has the potential to bring your credit score down and make make you look bad in the eyes of your future potential lenders.