Closing Credit Card With Outstanding EMI: Hidden Charges, Rules Explained

Some people use a plastic card called a credit card to buy things and pay the money back later.

Sometimes they split the repayment into smaller monthly parts, called an EMI.

If someone decides to cancel their credit card, the money they still owe does not go away.

The EMI payments must still be made until everything is paid off.

Banks and credit card companies have rules about this.

In India, the central bank says the card must be closed within seven working days after all dues are paid.

If you want to pay off the whole EMI early instead of monthly, you might have to pay extra charges.

If you miss payments, it can hurt your credit score, which is like a report card for borrowing money.

So the best idea is to check everything you owe and talk to your bank before closing the card.