You need to be careful with credit cards that are no longer used, without doing anything else. Find out in this article why this happens and what else you need to know.
If you decide to stop using your credit card, you can consider that the issue is over and done with. It is not enough to simply throw it away, although it may seem simple, the issue is complicated. It is not enough to just make the decision and act accordingly. Almost all credit cards have costs and remain active as long as the account is not cancelled, there is also the risk that they may be used by someone else, even if you do not agree with it.
Commissions such as annual fees are still alive. In the case of basic cards, this payment is not made and the use of other cards ensures that they will not be charged, as long as they are purchased frequently. Another aspect of the problem is that when you leave, you must pay an inactivity fee.
And you may inadvertently save a card on which you have direct debit payments, such as electricity, telephone, internet connection. This payment will be automatically charged as soon as the receipt is generated. You need to cancel the automatic charge to download the linked service.
There is a risk that someone will take your card or insert it virtually and use it. Procon highlights that every year there are millions of complaints about this issue.
If you haven't finished paying off your debt yet
When you stop using your credit card and don't finish paying it off, it will continue to generate costs. They will charge you the annual fee, as well as interest on arrears, fees for non-payment, and collection costs. Yes, your debt will increase even if you reduce your consumption to zero.
The rate at which a debt grows depends on the commission charged by the bank. The average commission charged by credit cards in Brazil is 25.3% in interest. Platinum cards tend to have the lowest interest rates, while classic cards have the highest, the average difference being 9.8%.
Once you decide to stop using your credit card, pay off your debt. If you don't resolve this, you will have a negative score with SPC and Serasa and your chances of getting a loan in the future will be reduced. Clean up your history and keep open the possibility of applying for a loan later. For mortgages and car loans, the same history is reviewed by banks.
If you don't use them, don't pay for them
Although they involve costs, credit cards attract users because they are useful for making purchases, both in physical and virtual media, instead of using cash. And rewards programs offer benefits, but at the same time the card comes with an additional expense.
Stores make card payments very simple. Even online stores have options such as prepaid cards or referenced deposits for those who prefer to avoid using credit.
If your credit card doesn't work for you, cancel it. It's your right. Cancellation cannot be denied. If you have a debt, you must pay it off first. Bank employees may try to convince you to keep the account, but if you've already made the decision, stick to it and say goodbye to credit and its fees.