Deactivating an SBI Credit Card

SBI (State Bank of India) is one of India's largest public sector banks and offers a wide range of financial products and services, including credit cards. While having a credit card can be convenient for making purchases and building credit, there may come a time when you need to close your SBI credit card.

This could be due to various reasons, such as high fees, a change in financial circumstances, or simply not needing the card anymore. This response will guide you through the steps to close or cancel an SBI credit card.

How to Close or Cancel an SBI Credit Card?

There are several ways to close or cancel your SBI credit card. The process can be completed online or offline, depending on your preference and convenience. This response will outline the steps to close an SBI credit card online or offline.

SBI has made the process as simple and convenient as possible for you. You have two options to initiate the process-

• You can either call our helpline number at 1860-180-1290 or 39-02-02-02 (using the local STD code as a prefix), or

• You can write to the bank at SBI Card, PO- Bag 28, GPO, New Delhi-110001, mentioning your name, address, card number, and contact details.

[Please avoid mentioning confidential information like the card’s CVV number or PIN.]

Once you have initiated the process of closing or cancelling the credit card, it is recommended that you cut the card diagonally for security reasons. Please note that once the primary card is terminated on your request, all the add-on cards will be canceled automatically.

Factors To Consider Before Closing Your SBI Credit Card

Before you decide to close your SBI credit card, it’s essential to consider the following factors:

1. Outstanding Balance: Ensure you have cleared all outstanding dues before closing your credit card. Failure to do so can lead to additional fees and impact your credit score.

1. Credit Score: Your credit score is impacted by your credit utilisation ratio, which is the amount of credit you use compared to your credit limit. Closing a credit card reduces your available credit limit, which can increase your credit utilisation ratio and negatively impact your credit score.

1. Rewards and Benefits: If your credit card comes with rewards and benefits like cashback, discounts, or reward points, make sure you have redeemed all of them before closing the card.

1. Credit History: The length of your credit history is a significant factor in your credit score. If you have had your SBI credit card for a long time, closing it can affect your credit history negatively.

1. Annual Fees: Some credit cards come with annual fees. If you’re closing your credit card to avoid paying these fees, consider whether the card’s benefits outweigh the fees.

Consequences of Closing Your SBI Credit Card?

Closing your SBI credit card can have several consequences, including:

Impact on Credit Score: As mentioned earlier, closing a credit card can affect your credit utilisation ratio and credit history, negatively impacting your credit score.

Loss of Rewards and Benefits: If you close your SBI credit card, you will lose any accumulated rewards, cashback, or other benefits associated with the card.

Credit History: Your credit history is essential in determining your credit score. Closing a credit card can impact the length of your credit history and credit score.

Future Credit Applications: Closing your SBI credit card can impact your future credit applications. Lenders may view you as less creditworthy if you have a history of closing credit accounts.

Potential Impact on Credit Utilisation: If you have a significant outstanding balance on your SBI credit card, closing it could impact your credit utilization ratio, which in turn can negatively impact your credit score.

Fees: Some credit cards come with annual or other charges. If you’re closing your SBI credit card to avoid these fees, be aware that you may still be liable for any outstanding balances or fees.

Does a Cancelled or Closed Credit Card Affect Your CIBIL Score?

Yes, a closed SBI credit card can affect your CIBIL score. The impact on your score will depend on several factors, including the reason for canceling or closing the credit card, your credit utilization ratio, and the length of your credit history.

Suppose you close an SBI credit card with a high credit limit. In that case, it can impact your credit utilization ratio, the amount of credit you use compared to your total available credit. A higher credit utilisation ratio can negatively impact your CIBIL score. Additionally, if you have a long credit history with a closed SBI credit card, your CIBIL score can also be affected.

However, if you cancel or close a credit card with a low credit limit, it may not significantly impact your CIBIL score. Additionally, closing the credit card because of fraudulent activity or errors on your credit report may not affect your score.

How to Reactivate a Closed Credit Card

If you have closed your SBI credit card but want to reactivate it later, you can do so by emailing sbicorporate.services@sbicard.com or calling the bank’s customer care team at 1860 1801 290 or (local STD code) 390 202 02.

You may need to submit some documents to complete the reactivation process. Once your request is processed successfully, your credit card will be reactivated.