How to Easily Opt Out of Fuliza

If you want to improve your financial management, learning to opt out of Fuliza is a very good kick-start. 

Fuliza is popular in Kenya; it’s like an overdraft facility that lets the user make borrowings anytime the wallet runs out of money. As beneficial as that might sound, several people find keeping up with the deductions challenging.

Knowing how to cancel Fuliza service will allow you to regain control over your finances and avoid unnecessary borrowing.

If you are tired of the Fuliza service controlling your spending, you can always cancel it and break free from the vicious circle of borrowing.

In this article, we will walk you through the simple steps to stop using Fuliza and what you need to know to make it fairly smooth. 

Whether you want to quit using Fuliza for good or just put it on hold for the time being, we’ve got you covered with all the details. Let’s dive in!

What is Fuliza?

Fuliza is an M-Pesa overdraft facility by Safaricom in Kenya. This means that if one has insufficient funds in his M-Pesa account, he can access an overdraft through this service.

This means that even when you try to transact and your balance is low, Fuliza covers the shortfall, and the transaction will go through. However, an amount owed is automatically deducted from deposits credited to your account in the future.

Many people do find Fuliza convenient, although it might not suit everyone, especially for individuals who want to manage their finances without using an overdraft facility.

It will be an excellent move to take control of one’s expenditure when one learns how to quit using Fuliza. Once you have successfully canceled it, you can comfortably continue using M-Pesa without being capable of drawing more money than you have within your account limits.

Read Also – How to Access Fuliza Mpesa Loan

How Do You Activate Fuliza?

To activate Fuliza, Safaricom’s overdraft service for M-Pesa users, you can choose between two main methods: USSD codes or the M-Pesa app. Here’s a step-by-step guide for both methods

Using USSD Code

1. Dial *234# or *334# on your mobile phone.
2. Select “Fuliza M-PESA” from the menu.
3. Opt in by choosing “opt in” and accept the terms and conditions.
4. Wait for a confirmation message from Safaricom.

Using the M-PESA App

1. Open the M-PESA app on your smartphone.
2. Navigate to “My Account” and then to “Update Customer Menu.”
3. Select “Loans and Savings,” then choose “Fuliza.”
4. Click on “Activate Account” and accept the terms and conditions.

After activation, you can use Fuliza when sending money, paying for goods and services via Lipa Na M-Pesa, or settling M-Pesa PayBill transactions if your account balance is insufficient.

Why Opt Out of Fuliza?

You may need to opt out of Fuliza for several reasons, especially if it no longer serves you right concerning your financial habits. Here are some key reasons to consider:

1. Avoiding Accumulation of Debt

While Fuliza allows you to spend over your balance, this leads to your being in a sort of vicious circle. You might opt out of the Fuliza service if you regularly borrow and cannot pay it back quickly. That will keep you from gathering small debts, adding up with time.

2. High Fees and Interest Rates

What is great with Fuliza, though, is that it attracts charges. You might get tired and stop using Fuliza because of the hefty fees against overdrafts. You would cancel it for the sole purpose of not paying extra charges and managing your finances well.

3. Encouraging Better Spending Habits

Others would stop using Fuliza, disciplining themselves to have more control over spending. If this is the case and you want to rely solely on what you have within your account balance, learning how to opt out of Fuliza or quit using Fuliza might be a step toward better discipline over your finances.

4. Preventing Unnecessary Transactions

This might tempt users to purchase things they probably would not have bought. If it is used on expenses that are not necessary, this could be another reason to stop the use of service and focus on living within means.

5. Financial Independence

Finally, you may want to opt out of Fuliza so that you can take charge of your money. You will then find that quitting the service will let you depend on your cash available without reverting to overdraft facilities.

Knowing how to stop using Fuliza might be a step toward financial freedom.

Of course, there are many good reasons to switch out of Fuliza. Taking back financial responsibility by cancelling the Fuliza service could mean no more loss of peace of mind and significantly better financial discipline.

Also Read – How Does Fuliza Loan in Kenya Work?

How to Easily Opt Out of Fuliza

If you are looking for ways to opt out of Fuliza or stop using the Fuliza overdraft service, there are a few simple ways to do this. You can use USSD, the MPesa app, or Safaricom Customer Service. Both are easy and take just minutes.

How to Opt Out of Fuliza via USSD

You can opt-in and out of the service, check your Fuliza M-PESA limit, view your balance, and request a mini M-PESA statement by dialling *234#. So, if you want to quit using Fuliza or opt-out, below are the simple Fuliza opt-out steps you need to follow: 

1. Dial *234# via Keypad

2. Opt for option 7 labeled “Opt Out”

You will be taken to another Prompt with the Message “Opting Out of M-Pesa Fuliza will reset your limit to as low as Ksh. 0 when you next opt-in.” If you are sure you would like to unsubscribe from Fuliza, select Option 1 for “Yes.”

3. A pop-up Notification from Safaricom will appear with the following message.

4. Upon successfully being unsubscribed, a text Message from M-Pesa reads in part, “You have successfully Opted Out of Fuliza M-Pesa Service”.

How to opt Out Via M-Pesa App

Fuliza has had an M-Pesa app menu for quite some time now. The menu shows your limit, the amount you have overdrawn, the amount due, and the due date.

You can also access your mini statement and opt out of the service. Here’s how to opt-out via the App.

1. Open the App
2. From the menu, select “Fuliza M-PESA”.
3. Select “opt Out” from options.
4. Confirm Yes following the prompts.
5. You will receive an SMS confirmation that you have been opted out of Fuliza. 

This is not a case of irreconcilable differences, for one can always opt in again to the service. 

Read Also – How to tap into FULIZA loans 2024

How to opt Out Via Customer Service 

If the above options are not possible, you may use Safaricom’s customer care. 

1. Dial 100 for customer support. 
2. Request that you be opted out of Fuliza. 
3. The staff will guide you through and ensure your Fuliza service is canceled.

You can opt out of Fuliza in mere minutes, either via USSD, using the M-Pesa app, or seeking assistance from Safaricom customer care.

What Happens When You Cancel the Fuliza Service?

You are free to join and opt out of Fuliza at any time. The following happens when you leave this loaning service: 

1. Your Fuliza limit can change 

Your Fuliza limit and credit score grow whenever you make timely Fuliza loan payments and increase your frequency of using M-PESA and Fuliza services.

If you do the opposite, your Fuliza limit and credit score can go down. Your Fuliza limit may drop to zero after you opt out, but it may improve once you opt back into the service. 

Some of the contributing factors to a zero Fuliza limit include the following:

Your M-PESA account is less than six months old. Your M-PESA, M-Shwari, and KCB M-PESA transactions became inactive after you opted out of Fuliza. You have an existing loan with M-Shwari and KCB-MPESA.

2. Your credit score can change 

Exiting Fuliza can affect your credit score. Upon opting in, Safaricom will not consider the already existing M-PESA history when rating your credit score.

Instead, it is dependent on your previous Fuliza loan repayment history. Your credit score will improve when you use Safaricom and M-PESA services more for rebuilding purposes.

If you signed up to Fuliza with two or more Safaricom lines, opting out with one does not affect your credit limit at another line. Your lines will only be affected in case of default on one of them.

Read Also – How to Opt in and out of MTN DND, Airtel DND, Glo DND and 9mobile DND

Why is My Fuliza Limit 0 After Opting Out?

If your Fuliza limit is 0 after opting out, it is probably because the process of opting out resets or suspends one’s borrowing limit.

Therefore, at such a point when you cancel Fuliza service or quit using Fuliza, the system realizes that you no longer need the facility. Consequently, the earlier limit that you might have accessed is therefore invalid.

Once you stop using Fuliza or opt out of Fuliza, the relationship between you and the service changes.

To the lending platform, you are no longer an active user; therefore, your limit might be automatically set to zero as a form of response by the system to your action.

In summary, opting out of Fuliza or canceling Fuliza service affects your account standing with the provider, often setting it to a 0 limit. That is, the system records the instance that you no longer need the service.

Does Opting Out of Fuliza Increase Limits?

Your limit does not increase if you opt out of Fuliza. Your Fuliza limit is determined by your transaction history and overall repayment history. 

Although one can opt to cancel Fuliza service, stop using Fuliza, or even learn how to stop using Fuliza, these will not affect changing your limit.

These will ensure your limit increases. Use Fuliza regularly and ensure you repay in time to increase it. When you quit or opt-out, the service will not be able to review your usage, which may cause your limit to stop growing. 

Your Fuliza limit perhaps increases by responsible use and timely repayments.

What Are the Benefits of Canceling the Fuliza Service?

The benefits of opting out of Fuliza include avoidance of additional charges. Once you opt-out from Fuliza, you are no longer in the daily fees business that accrues from the usage of this service. You can save money that would have been used to pay interest and fines.

1. Breaking the overborrowing cycle: Many users have the tendency to overuse Fuliza. This means that by giving up the use of Fuliza, you are forcing yourself to live within your means and not make many over-injunctions.

2. Improve credit score: Continuous borrowing through Fuliza can significantly affect your credit standing if the repayments are delayed. Cancelling the Fuliza service reduces the chances of acquiring debt that may affect your financial reputation.

3. You gain control over your finances: Once you know how to stop using Fuliza, you eliminate the fear of automatic overdrafts and surprise deductions from your account. In that respect, it helps you keep a rein on spending and reduces financial stress.

These benefits contribute to your financial security and encourage healthier money management habits.

How Can You Avoid Future Charges After Canceling Fuliza?

To avoid future charges after opting out of Fuliza:

1. Ensure you opt out of Fuliza appropriately so the service will not automatically deduct cash from your account.

2. After cancellations of the Fuliza service, do not initiate a transaction that may involve recourse to it again.

3. Monitor your account regularly to ascertain that you can no longer access Fuliza and that no charges have been deducted from it.

4. If you intend to cancel Fuliza service or quit using Fuliza, clear the outstanding balances at this point to avoid extra charges.

5. Be very conscious of your mobile banking activity. Avoid transactions that might unexpectedly trigger Fuliza after you have already canceled the Fuliza service.

Also Read – Safaricom Kenya Denies Cancelling Payment for Starlink

What Are Some Tips to Quit Using Fuliza?

Stopping the Fuliza service is a great way to handle your finances. Here are some practical ways to stop using Fuliza effectively.

1. Track Your Financial Habits: Understand your spending and identify areas where you can cut down on.

2. Set a Budget: Establish a basic budget and track expenses to reduce your dependency on Fuliza.

3. Cancel the Fuliza Service: call your bank or use the USSD code to unsubscribe from the Fuliza service altogether.

4. Build an Emergency Fund: Build an emergency fund to cover any abrupt expenses that may occur during a month, hence reducing the urge to use Fuliza.

To sum up, assessing your spending habits, budgeting, and establishing an emergency fund are some of the great ways to wean yourself off Fuliza. Keep this in mind: it will take time, but if you are committed, you will attain your goal.

Final Thoughts

Knowing how to opt out of Fuliza is easy and will help you manage your finances. The process of canceling the Fuliza service is very easy; you only need to follow the steps outlined herein, enabling you to take control of your spending.

If it is finally time to cease depending on the service, then now is a great time to quit using Fuliza and seek ways of managing your money better. With this lesson, you know how to stop using Fuliza. Take immediate action!

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Frequently Asked Questions

Reference 

• www.tuko.co.ke – How to opt out of Fuliza M-PESA if you no longer need their loans? 
• money.ke – How to Opt Out of Fuliza: A Quick Guide to Cancelling M-PESA’s Overdraft Service

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