Closing a credit card can have a negative influence on your credit score, although it is not necessarily damaging if the annual fee is large. If you’ve stopped using a credit card, you should consider the benefits and drawbacks before making a decision.
When considering a credit card, consider factors such as maintaining a lower utilization ratio, lowering the average age of accounts, keeping an older card if it doesn’t charge an annual fee, enjoying perks like extended warranties or purchase protections, and serving as a backup for unexpected expenses.
How to use a credit card for the first time for beginners online
Using credit Card is an art, for some it can be vary easy to manage, for some it could be hard to manage.
if you are aalsi type and don’t know managing finances or feels boaring of doing such things than it’s better to ignore using of credit card inside you can use debit cards.
But if banks like ICICI or HDFC issue you free credit card than you should use it wisely and took advantages of free sale like Flipkart Big billion sale or 15 %cash back on Amazon’s ICICI credit card on such sale on TATA CLIQ, AMAZON, FLIPKART etc.
NO COST CREDIT CARDS
Some Banks providing credit cards with zero fee annual, like ICICI platinum credit Card, Amazon ICICI credit card. You take advantages of such cards but always pay your dues within 30-45 days of every spending. Or inshort pay Your dues on time other wise you will be charged heavy panalty.
Closing a card may also offer some advantages, but it’s essential to weigh these before making a decision. Therefore, it’s crucial to weigh the pros and cons before making a decision.
Is it better to close a credit card or leave it open with a zero balance
You can either inform bank to close your credit card if you are charged annually fee for issuance of CC to you. Or if you are using Credit Card with zero charges or no hidden charges you can leave it as it is with zero balance account. Or salary account or any account you have.
Know why closing a card may be a good idea
Uncontrolled Spending
High Annual or Mantinance Charge
High Annual Maintenance charges or Expensive yearly fees :If you’re not using the advantages and the card includes an annual fee, it might not be worth maintaining.
Uncontrolled Spending or Overspending: If having a credit card makes it difficult to keep spending under control, it might be best to cancel it.
Be awair of such situations
Another situation can also be like this that you have given your credit card to your wife and you have not come home for many months because you are busy in business or you are in army or due to some other reason you are not able to meet your wife daily, then taking advantage of this situation your wife is having fun with her boyfriend, and if your wife is cheating on you then it will be better to close your credit card.
