Common Mistakes Between Closure and Blocking of Credit Card

Please don't make this mistakes, Read Carefully  Common mistakes done by us between closure of Credit card and Blocking of Credit card.

Blocking Vs Closer Important Points

Closing a credit card and blocking a credit card are two different actions that can be taken with a credit card account.

Closing a credit card means ending the account and no longer having access to the credit line. This can be done by the credit card issuer or by the cardholder. When you close a credit card, you will no longer be able to use the card to make purchases or access the credit line. However, the account will still appear on your credit report and may affect your credit score.

Blocking a credit card means temporarily preventing the card from being used for purchases or cash advances. This can be done for a variety of reasons, such as if you suspect that the card has been lost or stolen, or if you want to prevent unauthorized charges on the card. A blocked credit card can usually be unblocked by contacting the credit card issuer and verifying your identity.

It is important to be aware of the difference between closing and blocking a credit card, as the actions can have different impacts on your credit and financial situation.

How to block credit card:

 you can block your credit card to prevent it from being used for purchases or cash advances. Here are a few options:

Contact your credit card issuer: Most credit card issuers have a customer service number you can call to report a lost or stolen card and request that it be blocked. You may be asked to verify your identity before the card can be blocked.

Use your issuer's online portal or mobile app: Many credit card issuers have an online portal or mobile app that allows you to manage your account, including blocking your card. You can usually find this option in the "security" or "account settings" section of the portal or app.

Freeze your credit: If you are concerned about unauthorized use of your credit card and want to block all of your credit accounts, you can freeze your credit with the three major credit bureaus (Experian, TransUnion, and Equifax). This will prevent anyone from opening new credit accounts in your name or accessing your existing credit accounts.

It is important to note that blocking your credit card will not close the account. The account will remain open, and you will still be responsible for paying any balances or fees that accrue on the card. To close the account, you will need to contact your credit card issuer and request that the account be closed.

If you want to close a credit card account, here are the steps you can follow:

Pay off your balance: If you have a balance on the credit card, it is a good idea to pay it off before you close the account. This will help you avoid accruing interest and fees, and it will also improve your credit score by reducing your credit utilization (the amount of credit you are using compared to your credit limit).

Cancel any automatic payments: If you have any automatic payments set up on the credit card, such as for a subscription service or a gym membership, cancel them before you close the account. This will prevent the payments from being declined and potentially incurring fees.

Contact your credit card issuer: You will need to contact the credit card issuer and request that the account be closed. You can usually do this by calling the customer service number or sending a written request through the issuer's online portal or by mail.

Cut up or destroy the physical card: Once the account is closed, cut up or destroy the physical credit card to prevent it from being used.

It is important to note that closing a credit card account can affect your credit score, as it may reduce the average age of your credit accounts and increase your credit utilization. However, if you are no longer using the credit card and are not planning to use it in the future, closing the account may be the best option for you.