Do you have a credit card? Find out how to cancel it

20/01/2020

The number of credit cards granted by commercial banks in Mexico grew 21.5% in the last decade, which means an increase of more than five million plastics, according to data from the National Banking and Securities Commission (CNBV).

Do you have a credit card? See how to cancel it
Do you have a credit card? See how to cancel it

The information, which was analyzed by the Mexican platform specialized in comparing financial services online Coru.com, indicates that credit, and in particular credit cards, are one of the most popular means of payment in Mexico.

However, the Bank of Mexico and the CNBV indicated that in November 2019 the overdue portfolio in the segment of consumer loans reached $53,871 billion pesos, the highest amount in the last 15 years.

Therefore, 'a radical decision to lighten debts and leave behind the monthly payment cuts is to cancel the credit card, and although there may be other reasons for this decision, it is important to know the process,' said the director of Coru.com, Luis Madrigal.

In order to guide cardholders who wish to cancel their plastic, it is necessary that they know the general process and the main conditions and consequences of doing so.

Every customer has the right to cancel their credit card whenever they wish and in the simplest way possible, as long as they are up to date with their payments, according to the law of Transparency and Order of Financial Services, that of Credit Institutions, and the National Commission for the Defense of Users of Financial Institutions (Condusef).

How to cancel a credit card?

Verify that there are no debts, because no credit card can be canceled until all the debt is paid off

Call the bank's customer service line

After the phone call, the executive will give a folio number

Sometimes it is necessary to send a letter to explain the reasons for cancellation

Deliver the plastic and verify that the delivered plastic is destroyed to avoid its misuse

If you have debts, can you cancel the credit card?

In case you want to cancel a card with debts, the alternative is to transfer the outstanding balance to another credit card, in a process known as credit portability or debt transfer.

However, before making a debt transfer you should investigate whether the same bank offers this option and compare the rates, terms and general conditions.

In response to some people's doubts about whether canceling a credit card affects the credit history, experts say that if it's the only plastic a person has, it could be counterproductive to cancel it, because in that case, it will stop having activity on your credit report.

On the other hand, if the person has several cards, it can be positive to cancel some of them, since, in addition to controlling their debts, it keeps their history active. Ideally, you should keep the older credit cards, but only if the payment terms and/or benefits are favorable to the cardholder.

By Mexicanist