Credit Card Update: Have you also just kept a credit card and are not using it? If so, then know whether you should close your credit card? Or should it be kept like this.
Credit Card Update: In today’s time, most of the customers have credit cards, but there are many customers who just carry the credit card but do not use it. Have you also just kept the credit card and are not using it? If so, then know whether you should close your credit card? Or should it be kept like this.
Should you also close your credit card?
There is confusion among many people about whether you should close your credit card or not… it depends on which credit card you have. If you have a credit card which has an annual fee and you are not even using it, then there is no benefit in keeping such a card with you.
Instead, you should take a credit card on which there are no fees. You should take a credit card on which there is no annual fee.
Effect will be visible on credit history
For example, you have 3 credit cards. In this, the first credit card is 9 years old, the second is 6 years old and the third credit card is about 3 years old, so accordingly the average of your credit history will be about 6 years. In such a situation, if you close your credit card, your average will reduce. If you have any big plan in future, it will affect your credit history.
Getting a loan becomes easier
It becomes very easy for you to take loan through credit card. If your credit score is good then you get many special benefits from the bank. Apart from this, if you use your credit card more than 30 percent then the bank considers you a high risk customer. At the same time, customers who use less credit are less risky.
Many offers are available on credit cards
If you have a credit card, you can avail many benefits by using it. Many offers are given to the customers by the bank. Apart from this, you also get many types of offers on e-commerce websites. Apart from this, you get the benefit of cashback along with discounts on many apps including Amazon, Myntra.