How to Properly Cancel a Credit Card in Dubai

Steps to Cancel Credit Card in Dubai, UAE

Many cardholders wonder ‘how do you cancel a credit card?’ Just like any other banking procedure, you need to follow a structured process to ensure all dues are cleared, and the account is formally closed without future liabilities. 

Find below the key steps involved —

1. Before initiating cancellation, review and settle the outstanding balance and usage. This includes interest, instalments, and any reward redemptions. 
2. Get in touch with the issuer. You can submit a cancellation request through the bank’s online portal, mobile app, or call centre. 
3. Some banks may ask for a written or signed form to confirm the cancellation instruction and return of card(s).
4. When the cancellation request is approved, the card(s) should be cut and returned to the bank or made unusable.
5. This paper confirms that all debts have been paid off and no future obligations exist.
6. Keep an eye on the account closure. To be sure that the account is marked ‘closed’, that no charges have been applied, check the next bank statement.

Things to Know Before Credit Card Cancellation 

Cancelling a card has an impact on your expenses as well as your credit profile. If you’re wondering ‘how do I cancel a credit card’, here are the key points to know before starting — 

• Credit history and score affected: The cancellation of a card can, at times, shorten your average credit age. This not only reduces the total available limit but may affect your credit rating as well.
• Lost rewards and benefits: On cancellation, the unused sign-up bonuses, miles, or cashback may be forfeited.
• Timing of annual fee: If the annual fee has just been charged, it may not be refunded. For this reason, it’s better to wait for the next billing cycle before making a cancellation.
• Liabilities on the card: If there is a balance left, you won’t be able to close the card.
• Options available: Instead of cancelling or downgrading the card, you can settle its debt in full and keep it as it is. This way, you can preserve the credit limit and your credit history age.

How to Cancel a Credit Card in UAE?

You can easily cancel credit cards in UAE through various methods, depending on the bank’s policy and your location. Each method includes verification steps so that the request is valid and documented, and follows the guidelines.

Here are the steps —

• Online or Mobile Banking: Some banks, like Emirates NBD, allow direct cancellation via their app or online portal. You can simply log into your account, choose the option to cancel, and follow the on-screen steps.
• Phone/Call Centre: Contact the bank through phone banking and make a cancellation request. In this case, the bank may ask for verification and provide confirmation within a few days.
• Branch/Written Request: Visit a branch to submit a signed cancellation form and return or destroy the card.

What Happens After You Submit the Request for Credit Cancellation in UAE?

Having understood how can you cancel a credit card, let’s understand what all you need to keep in mind to ensure proper closure and accurate reporting. 

1. Confirmation & account status: The bank will process the request. You can get a call back in a few working days. 
2. Final bill and closure: Make sure that the final statement indicates a zero balance and that the account status is changed to closed. If applicable, keep the clearance certificate for future reference.
3. Document retention: Keep the copies of your request, bank confirmation, clearance certificate, and card return acknowledgement together.
4. Monitor credit report: After a few weeks, check the report to see if the closed account is recorded correctly. Also, check if there have been any new charges.
5. Re-opening or new card: If, in the future, a new card is to be issued, the old closure will still be part of the record. However, it will not hinder the new application — this is subject to you still being eligible.

What Happens to Your Credit Score After You Cancel Credit Cards? 

When you cancel a card, it doesn’t just impact your finances. Your credit Score and report can also change, depending on how you have managed your debts so far. Here’s what you need to keep in mind — 

(1) Decreased Credit Limit

The limit of total available credit decreases when you cancel one card. This, in turn, increases the credit utilisation ratio if there are other balances. 

For instance, assume that you have 2 cards with the following outstanding balance and total limits.

In this case, your total outstanding amount is AED 10,000. Your total credit limit is AED 40,000. The utilisation ratio, thus, is (20,000/45,000) x 100 = 44.4%.

Now, suppose you settle the debt of card 2 and close it. In this case, your utilisation ratio will be (15,000 x 30,000) x 100 = 50%.

In the short run, it can lower your score.

(2) Lowered Credit Age 

The average credit age is reduced if the opened card is among the oldest accounts. This can also bring down your credit score, although the impact is usually not that big. 

(3) AECB Report Submission

Banks notify the al etihad credit bureau (AECB) about account closures. The final reporting accuracy depends upon the completion of the settlement.

Alternatives to Credit Card Cancellation in UAE

While we now know how to cancel a credit card, it’s important to consider if that’s even worth it. While you can always cancel a card, keeping it active with bare minimum spends can keep your credit history and limit intact. 

Here are some alternatives — 

• Card downgrade: Switch to a lower-fee variant without affecting account age.
• Limit reduction: Reduce the credit limit. This can control the risk while keeping the account active.
• Free-for-life cards: If you are eligible, you may get the option to switch to lifetime-free cards.
• Temporary suspension: Pause the card instead of cancelling to preserve credit history and limit.

What to Do Before Cancelling a Credit Card in Dubai? 

While we now know how to cancel a credit card in UAE, it’s essential to be aware of some steps to take before starting the process. This can help you make the most of your rewards and avoid any unexpected charges. 

1. Clear all instalments: Pay off balance transfers, instalment plans, and easy-payment schemes. This way, you can steer clear of interest and other charges.
2. Redeem rewards: Don’t forget to use cashback, points, or miles before any changes. 
3. Review subscriptions: Cancel auto-payments for telecom, streaming, and utilities. This can keep your subscriptions active and help you avoid declined charges.
4. Remove wallet links: Delete the card from your wallet, whether that is Apple Pay, Google Wallet, Noqodi, Careem Pay, and so on.
5. Download past statements: Keep them for credit disputes or visa documentation.
6. Confirm no pending holds: Cancel hotel or car rental pre-authorisations before closure.

Steps After Cancelling Credit Cards in UAE

Submitting a request to cancel credit cards is the first step in the banks’ procedure to update the account status. Only after the validation of all the steps, like zero balance, clearing charges, and card destruction, is the account status updated. 

Here are the key steps — 

1. Check closure status: Ensure the account shows as ‘closed’ in the banking portal and statements.
2. Obtain a No Liability Certificate: Confirms that there are no outstanding dues. This can save you from future claims, if any.
3. Keep confirmation: Retain emails or letters as proof of closure for credit-score verification.
4. Monitor AECB report: Check your credit report after 30–45 days. to confirm account update.
5. Update linked payments: Replace auto-billing services like Etisalat, DEWA, and Salik to avoid disruptions.

FAQs