Now Reading: Closing credit card with EMI does not erase repayment duty
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Closing credit card with EMI does not erase repayment duty
Closing a credit card does not end your repayment obligations, experts say, even if the card has an outstanding EMI. The repayment continues until the full amount is cleared, subject to the…
The Story in Brief
Closing a credit card does not end your repayment obligations, experts say, even if the card has an outstanding EMI. The repayment continues until the full amount is cleared, subject to the issuer's terms, and foreclosure may attract charges. Experts advise checking outstanding EMIs, pending dues and closure charges before cancelling.
Ashish Lath of SaveSage notes that RBI rules require banks to close a card within seven working days, but only after all dues are paid. Consumers should obtain formal closure confirmation through email and phone to avoid credit-score damage. Missed payments can affect the credit profile.
The Indian Opinion
The lazy narrative here is that closing a card wipes the slate clean, which is false. Another is that banks trap customers with hidden EMI clauses, but the terms are usually in the cardholder agreement. The real test: ask your bank for a written statement of dues and closure terms before you cancel. If the number is zero, you are safe. If not, pay it and get the confirmation in writing. That settles the question, not blame.
Source: livemint.com
This story was synthesised by AI from the source linked above.
