Cancel Your Magalu Card might seem like a simple process, but if you’re not fully aware of the steps involved, you might run into unexpected challenges—especially when it comes to cancelling your Magalu credit card.
While the idea of closing an account may seem as straightforward as cutting up your card, there are specific procedures to follow to ensure everything is handled properly.
Missing out on these steps can lead to fees or even the loss of any rewards you’ve accumulated.
In this guide, we’ll explore the Magalu credit card and provide you with four effective methods to cancel it, making sure you do so without a hitch.
Understanding the Magalu Card
The Magalu credit card is popular for its lack of annual fees and the variety of benefits it offers.
Cardholders enjoy cashback, discounts, and favorable conditions across multiple categories such as groceries, pharmacies, cosmetics, fashion, and sports goods.
These perks make it a valuable asset for many, but there are times when cancelling the card might be necessary—whether it’s due to high interest rates, a change in financial goals, or simply wanting to reduce the number of open credit lines.
Before diving into the cancellation process, it’s crucial to understand the implications.
While cancelling a credit card can sometimes be beneficial, especially if you’re dealing with high fees, it can also impact your credit score.
Therefore, it’s wise to carefully evaluate your reasons for closing the card, particularly if it’s one of your oldest accounts.
Ways to Cancel Your Magalu Card
Pay Off Any Remaining Balance
Before you even consider cancelling your Magalu card, make sure to pay off any outstanding balance.
Some credit card issuers might allow you to close an account while still carrying a balance, but this can lead to complications, including accruing interest and fees on the remaining debt.
Paying off your balance in full ensures that there are no lingering debts to worry about.
If you’re struggling with a high balance, you might consider transferring it to another card that offers a lower interest rate or even 0% interest for a promotional period.
This way, you can pay off your debt without the pressure of accumulating more interest while you close the Magalu account.
Redeem Any Rewards
If you’ve accumulated cashback, points, or miles on your Magalu card, it’s important to redeem them before closing the account.
Cancelling a rewards credit card often means forfeiting any unused rewards, so be sure to cash in on them first.
Review the terms of your card’s rewards program to understand how you can redeem or transfer your rewards.
For instance, travel rewards might allow you to transfer points to hotel or airline loyalty programs, while cashback rewards might be deposited into a linked checking account.
Keep in mind that some programs have minimum redemption amounts, so check the details to maximize your benefits.
Call Your Bank
Once your balance is paid off and your rewards are redeemed, it’s time to start the cancellation process.
The first step is to call the customer service number on the back of your Magalu card. This will connect you with a representative who can assist with closing your account.
Before you make the call, double-check that your balance is indeed zero.
Even if you’ve paid off the balance, there might be residual interest that accrued between the time your bill was issued and when you made the payment.
Confirming a zero balance will prevent any surprises after the account is closed.
During the call, make sure to ask for confirmation that your account will be closed at your request.
This is important because if the account is mistakenly marked as “closed by issuer,” it could negatively affect your credit score.
While it might seem old-fashioned, sending a follow-up cancellation letter is a crucial step in ensuring your account is properly closed.
After your phone conversation with the bank, drafting a brief letter to confirm your request provides an extra layer of security against potential errors or technical glitches.
In the letter, state clearly that you want your account closed at your request.
Include essential details such as your name, address, phone number, account number, and a summary of your conversation with the bank representative.
Sending this letter not only documents your request but also provides a written record in case any issues arise later.
Check Your Credit Report
Patience is key when it comes to seeing the effects of cancelling your Magalu card on your credit report. It can take a month or more for the cancellation to be reflected.
Once you see the update, verify that the account is marked as “closed at consumer’s request.
” If it’s incorrectly labelled as “closed by issuer,” this could harm your credit score, so it’s important to resolve any discrepancies with your bank immediately.
Destroy Your Old Card
After your account is officially closed, you’ll want to dispose of your old Magalu card.
The easiest way to do this is by shredding it or cutting it into small pieces to ensure it can’t be used again.
However, if your card is made of metal, you’ll need to contact your bank to request a prepaid envelope. You can send the card back, and the bank will handle its secure disposal.
Does Cancelling a Credit Card Impact Your Credit Score?
Yes, cancelling a credit card can impact your credit score. When you close an account, it reduces your overall available credit, which can increase your credit utilization ratio—this is a key factor in determining your credit score.
Additionally, if the Magalu card was one of your oldest accounts, closing it could shorten your credit history, another important element of your credit score.
To gauge the impact of cancelling your card, consider requesting a copy of your credit report about a month after the cancellation.
This will allow you to verify that the account has been properly closed and to see how it has affected your credit score.
Final Thoughts
Cancelling your Magalu credit card involves more than just cutting up your card. It’s a process that requires careful planning and attention to detail to avoid any negative consequences.
By following the steps outlined above—paying off your balance, redeeming rewards, contacting your bank, sending a cancellation letter, and checking your credit report—you can ensure a smooth and hassle-free closure of your account.
Remember, while cancelling a credit card can be a smart financial move in certain situations, it’s important to weigh the potential impact on your credit score and overall financial health.
Make informed decisions, and if you’re unsure, consult with a financial advisor to explore the best course of action for your unique situation.
