How to cancel a credit that you no longer want?

Did you know that you can cancel your credit whenever you want? That is a right that you have as a user of financial services, but under what conditions can you do it? Next we will explain it to you.

In what cases can I cancel a credit that you no longer want or do not use anymore?


Cancel a credit if you do not have debts

Cancel a credit if you do not have debts

In this case, you must request cancellation from the bank and / or financial institution with which you processed the loan, comply with the format requested (usually includes submitting a written letter, among other documents) and wait a few days – skilled – for that the cancellation takes effect. Remember that some financial institutions can apply some fees for cancellation procedures, which are only legal if they were specified from the beginning of the adhesion contract.


Cancel a credit if you have debts

Cancel a credit if you have debts

One way to “cancel” a loan if you still have outstanding payments is to transfer the debt to another bank, meaning that another financial institution will “adopt” your old debt under other conditions, which ideally must be better. This is equivalent to asking for a cheaper “financing” to another entity or bank, and with that money to pay the first loan, in this way you will have pending payments, but less or with lower interest.

To this solution, it also calls credit portability . If you are interested in this alternative it is important that before choosing a bank to transfer your debt, compare the rates, terms and general conditions so that you select the one that suits you best.



And if I want to cancel my credit, how do I do it?

credit cancel

The first thing you should do is notify the bank of your decision, either by telephone, in writing or as determined in your adhesion contract.


What is the bank obliged to do in case of credit cancellation?

What is the bank obliged to do in case of credit cancellation?

The bank must provide you with a folio number that confirms that you have already informed them of your cancellation decision.

If you have a plastic card, they will ask for it so that you do not misuse it. In case you do not have it, you will have to write a letter in which you explain why you do not have it or that you have already destroyed it.

Whether you have transferred 100% of the debt to another institution, or you have no outstanding payments, the bank must give you a record that you have no debt with them for any future clarification.

Remember that if you do not cancel the credit properly, even if you had already settled the balance, the bank can still charge some commissions, for example the annuity or account management, check your cancellation document! and avoid setbacks in the future.


The obligations of the bank when you cancel a credit

  • The bank must inform other financial institutions that you no longer owe any amount, so that you can request another credit in another institution, if this is the case.
  • It also issues a notice to the Bureau and / or Credit Circle that you liquidated (or transferred) the debt. As they are different solutions, the rating is also different in each case.
  • The bank should not charge any commission for the cancellation of your credit card, if you had any associated with the canceled account.
  • Take into consideration that all the services related to the credit will also be canceled, for example the direct debit of payments, take your precautions.
  • If you opt for the portability of credit, the new bank will make the arrangements to cancel the credit with the bank with which you originally contracted, which will simplify the process of processing.

It is very likely that when you want to cancel any credit, the staff of the bank that attends you will try to persuade you not to do so and for that they offer you other benefits. Do not feel pressured, make a decision considering all the pros and cons.


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