Why is it not enough to stop using the card
The funds that you access with the card are in the account. Even if it is empty, and the card has expired, it continues to exist. And for its maintenance, the bank can take money, and in a completely legal way. The terms are usually written in the contract . Service charges may arise if:
- You keep less than a certain amount in your account (and you have withdrawn everything).
- You spend less than a certain amount per month (and you stopped using the card).
- The grace period has ended.
The bank will charge the service fee and you will be in debt. You will most likely have to pay it with interest. Moreover, for a debit card, the interest can be even higher than for a credit card . If the debt is revealed in a few years, the amount will be impressive.shop keepers using Credit card checker for card is valid or not Fees for SMS-informing, deferred commissions for any services and so on can contribute to the increase in debt.
To prevent this from happening, you need to say goodbye to the bank more decisively.
How to properly end a relationship with a bank
Proceed according to the following algorithm:
- Disable all paid services. It will take time to negotiate with the bank, and you will stop spending too much now.
- If there are debts on the account, pay them off.
- Submit an application to the bank to close the account. Much will depend on the institution itself. Somewhere you can notify your decision online. And some banks will require you to come to the branch, and exactly where you opened the account. It is better to clarify this question in advance. If you go to the office, and your card has not expired yet, at the same time hand it over to the bank so that there are no questions for you. Formally, this is the property of a financial institution, which is written directly on the plastic rectangle.
- Wait for the period during which the bank under the agreement must close the account. The organization needs this time to check whether deferred commissions will come, for example, for using an ATM from another bank. If debts appear, they will also have to be paid.
- When the account is closed, take the appropriate certificate from the bank, which will indicate that the institution has no financial claims against you. The paper will come in handy if, due to mistakes, debts suddenly begin to arise after the account is closed.
What to do if several cards are linked to the account
You do not need to close your account. But the card that you no longer intend to use is still better to block. This will eliminate the risk that fraudsters will use her data and gain access to your account.
Using a credit card
You do not touch the money on the debit card and pay for purchases by credit . When it’s time to pay with a credit card, you transfer money from your debit card to it and fit into the interest-free period.
In this case, you will be charged a higher interest on your debit card, since you have not spent funds from it for a month. For the example from the previous point, the minimum balance on which interest would be accrued was 32 thousand (17 + 15).
The method looks promising, but there are subtleties here:
- You must be very disciplined to avoid credit card delinquencies.
- Your income must be regular, otherwise you will not be able to pay off your credit card debt on time.
- The cost of servicing a credit card must be lower than interest income.
In addition, in order to make money on a debit card and not lose anything, pay attention not only to the words of bank managers and advertising brochures, but read the agreement carefully . This is one of the secrets of success in everything.