Does Closing a Credit Card Affect Credit Score – In today’s time where credit cards are becoming increasingly common, no one wants to spoil their credit card score. In such a situation, people with such wisdom take decisions so that their credit card score does not get spoiled.

In such a situation, many times a decision taken without information puts you in unnecessary trouble, and one of these is closing your old credit card, which can spoil your CIBIL score.

Let us know in today’s post what happens to you on closing your old credit card and how it has a big impact on your credit history. And how to avoid it.

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After all, why is it harmful to close your old credit card?

By closing the old credit card, the limit of your current credit card gets reduced and by increasing it, your credit utilization ration increases substantially.

By doing so, your credit card history gets reduced which weakens your financial profile.

In such a case, you will have to reduce your expenses because in such a case, if you use the card excessively, your credit card score can also decrease.

In such a case, you should always keep in mind that you should use only 30%-40% of your card’s limit. This means that if your credit card limit is 1 lakh, then you should use only 30,000 to 40,000 rupees. By doing this, your credit score keeps improving.

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Why does the credit card score fall?

The biggest reason for this is that when you close your old credit card, then at that time your credit score comes down considerably. And in such a case, when you close the old credit card and take a new credit card, then the banks do not feel that your financial situation is stable, so in such a case they bring down your credit score.

In such a situation, our advice to you is that if you have any non-essential credit card, then pay it on time and avoid closing it. You may want to reduce the use of this credit card but do not close your credit card. Yes, if you do not want to use the credit card further, then you have no problem in closing this card.

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10 FAQs about Does Closing a Credit Card Affect Credit Score?

When is the right time to close a credit card?

If you want to close a credit card, close it only when it is new and the work has been done, doing so has very little impact on your credit score.

Does closing an old credit card affect your CIBIL score?

Yes, doing so can affect your credit card score, especially when your transaction record has been good for a long time.

Does having more than one credit card improve your score?

Yes, if you use your cards properly and clear your payments on time, your credit score can improve.

If we use our credit card less, should we keep that card?

If you want, you can use your credit card less so that it remains active and your credit history remains better.

Which thing has the most impact on credit card score?

Paying charges on time and having a long term credit history has a huge impact on your card.

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Is there any difference between closing your credit card yourself and closing it through the bank?

Yes, if you close your credit card yourself then the impact on your credit score is minimal whereas if your bank closes your credit card then the impact on your credit score is significant.

I do not use my credit card but an annual fee is being charged on it, what should I do in such a case?

If you wish, you can close your credit card but you must check your credit history and also keep in mind that after this it will be a bit difficult for you to get a credit card again.

If the credit card remains inactive, does the bank close it itself?

Yes, if you do not use your credit card for 12 months then your bank can close your credit card.

In how much time can the credit score be improved?

To improve your credit score, you should make your payments on time and by doing so you can improve your credit score in 3-6 months.

Does using a credit card increase your credit score?

Yes, if you use your credit card properly and clear the payments on time then your credit score can be improved in this case.

We hope you get information about “Does Closing a Credit Card Affect Credit Score” in our article, please do share, thanks.

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Debit Card and Credit Card Safety – Just as the use of credit card and debit card is increasing in our country, the cases of fraud related to it are also increasing.

Nowadays almost every working person, whether it is man or woman, has a credit card or debit card which people use for shopping or other online transactions.

Sometimes we even give our card to children so that they can buy something from the market using our card. In such a case, you need to be very cautious not only for your child to use your card but also when you yourself use your card, you should always be cautious.

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Friends, today’s article are based on how to avoid credit card and debit card fraud. Everyone earns money with a lot of hard work and no one wants to see their money being swindled, in such a case, today’s post is going to be very useful for you.

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So, let’s start.

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Set a limit for your daily transactions because if someone cheats you, he will not be able to withdraw more money than the daily limit and the remaining money in your account will remain safe.

Does Closing a Credit Card Affect Credit Score

If you lose your credit card or debit card or it gets stolen, block your card as soon as possible from the mobile app. If you are not able to block it from your mobile, you will have to call the customer care of your card and get your card blocked and save your money from being looted.

Always keep an eye on your children’s online shopping and gaming to make sure they are not using credit card or debit card there. Both of these are such habits that you never know when the card will become empty.

In such a case, keep checking the children’s card from time to time or give them a card with a low limit. Always keep these things in mind

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Nowadays you must be seeing in newspaper or TV news how people are being cheated online, so in such a situation it becomes necessary for you to review your card at least weekly and keep checking your bank statement online from time to time and in case of any suspicion of fraud, contact your bank immediately.

Never share your PIN number with anyone under any condition and do not write it down in your purse, if you have to write it down then write it down as a code word.

Try not to withdraw money from ATMs located in metro stations, retail stores, airports or other public places because in these places, the thieves have installed skimming devices by which they can clone your ATM card and withdraw money from it.

In such a case, you should always withdraw money from an ATM, no matter which bank’s ATM it is. Also, you should avoid logging into your bank account using Wi-Fi in public places because doing so can hack your card or your entire phone/laptop.

While shopping from any website or while giving your information on any website, check whether that website is safe or not. And for this, the safest way is to see whether the URL of that website has https prefixed or not. If it is not, then this site is not safe and if it is, then this site is considered safe.

Keep changing your passwords from time to time because your password is easily found on websites like dark web and this is the reason that changing your password after a few days is the right option for safety.

If a shopping website offers cash on delivery option then such website is considered safe most of the time because cash on delivery option is given only by those to whom they want to sell their product, those doing fake work do not offer such option.

While using the ATM, do not throw the receipt that comes out from the ATM just like that, but throw it after tearing it properly because by throwing it like this someone can misuse your bank account number.

Do not put any kind of information related to your net banking, credit card and debit card on the internet. If your card gets stolen or lost, it is best to get the call cab cards blocked at customer care without any delay.

Whenever you receive a new card, check carefully whether your envelope is properly sealed or not. And after this it is better to change your default PIN which comes from the bank as soon as possible.

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Keep changing your PIN after a few months and also keep in mind that if you give your card to a shop, they should swipe your card in front of you.

If you do not want to use your card, then cut it properly and throw it in a separate place. And do not share your personal details on any type of call or email. After any type of online transaction, always clear the cookies after logging in from the website.

FAQ about Debit Card and Credit Card Safety

Can someone withdraw money immediately if the card is lost?

Yes, it can be taken out, but if you have set a limit for your card and get your card blocked as soon as possible, then there are chances of your loss being less.

Is it necessary to change the card PIN frequently?

For safety reasons, changing the PIN after a few weeks is good for your financial health.

What should be done first when the card is lost?

If the card is lost, you should block your card as soon as possible and complain about your card being lost at the police station.

Is it safe to give the card to children?

If the children are small then avoid it, if the children are older then keep checking their transactions from time to time.

Is UPI transaction as safe as credit card or debit card?

If you keep your UPI app safe and do not share your UPI pin and OTP then it is absolutely safe.

Can we withdraw money by scanning QR code from our ATM?

Yes, now many ATMs have started UPI based cardless withdrawal system where you can withdraw money by scanning QR code from your phone.

Do all bank ATMs support cardless cash withdrawal?

Not at the moment, but only those ATMs which have ICCW support support cardless cash withdrawal.

What should we do after doing an online transaction?

After doing an online transaction, you have to logout from your PC or mobile and clear your browser history and cookies. Also keep checking your transaction notifications and emails.

Can your card be temporarily blocked from the mobile app?

Yes, most banks give you the option of temporary block or unblock.

So friends, we hope you find our article “Tips for Debit Card and Credit Card Safety” very helpful, plese do share with others, thanks.

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Credit Card Hidden Charges – “Hello sir, I am calling from ABCXYZ Credit Card Company, we have brought a lifetime free credit offer for you”. Friends, I hope you too get such calls, in which you will get an offer to sell free lifetime credit card.

This offer sounds very good and you find the limit of their credit card as per your expenses and there are no annual fees for it too. But friends, it is very difficult and it is always opposite to what you are told. The only difference can be that someone is charging more and someone is charging less.

If you take a credit card after hearing such things, from the same time 5 types of charges are levied on you by the credit card company about which you do not even have an idea.

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Banks do not give information about these charges to their credit card holders

Everyone tells you about cashback, reward points, discounts and many other types of offers on using credit card but they do not give you information about the hidden fees and charges of your credit card.

In such a situation, we have brought this post for you, after reading which you can know which are those 5 charges which are levied on your credit card which you do not even know about. So let us know about those 5 credit card charges,

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Annual fees

These are the charges that are levied every year which every credit card holder has to pay every year. These charges can range from Rs 1000 to Rs 5000; some bigger cards may have higher fees. Although some credit cards do not charge any fees for the first year, you have to pay annual fees every year thereafter.

Transaction Charges

If you use your credit card for any foreign transaction or withdraw money from your credit card using your ATM, then these charges are levied on it which range from 2% to 4% per transaction.

Late Payment Fee

If you do not pay your bill on time using your credit card, then it is inevitable that you will be charged a late payment fee. Credit card late payment fees depend on each card and can range from Rs 500 to Rs 1,000 and can also affect your credit score.

In such a case, if you use a credit card, it will be beneficial for you to pay your payment fee before time.

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Minimum Payment Fee

If you spend whatever you have using your credit card and you pay only the minimum payment instead of paying the entire pending amount, then you start getting a hefty interest on your outstanding amount.

And this loan interest can be from 2% to 4% per month and along with the actual amount, interest also starts accruing. In such a case, it will be better for you to pay the money on time.

Cash Advance Fee

If you need cash and you withdraw cash from your ATM using your credit card, then you have to pay charges ranging from 2% to 5% and its interest is much higher than the interest of a normal loan.

In such a situation, withdrawing cash without any hassle, that too by using your credit card, can create a huge interest for you.

Let’s know how to avoid these 5 Credit Card Hidden Charges

Before taking a credit card, get complete information about its rules, regulations and the charges and fees applicable.

• Do not spend more than the limit of your credit card.
• Always pay your credit card bill on time.
• Use credit card only when it is very necessary.
• It is not right to use cash advance, do so only when it is very necessary.
• Compare your card with other credit cards on our website.

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10 FAQs about Credit Card Hidden Charges

Are there charges on lifetime free credit card?

Yes, sometimes there are cash advance charges and transaction charges on such credit cards.

Can the annual fees of credit card be waived?

Yes, some banks keep such conditions under which if the user spends at least 1 lakh rupees from credit card in a year, then that user does not have to pay annual fees.

Does late payment affect your credit card score?

Yes, not making payment on time can lower your credit card score and in such a situation, if you have to take a loan, you may face difficulty.

Is it beneficial to make minimum payment on credit card?

No, it only covers the interest on your credit card but your base amount remains the same.

Can I convert my credit card reward points into cash?

Such offers are provided by some credit cards, and their rules and regulations are also different.

Is it right to withdraw cash from credit card using ATM?

You should only withdraw cash from your credit card in case of extreme need as it attracts heavy charges and interest.

Can I check the charges on my credit card online?

Yes, you can check all the details by visiting your bank’s official website or their app.

Are credit card transaction charges applicable only on foreign transactions?

Mostly yes, but sometimes extra charges are levied on domestic services through some credit cards as well.

Do the charges also stop after you close your credit card?

Yes, but only after you have cleared all your balance charges.

We hope you like our article on “5 Credit Card Hidden Charges You Maybe Not Be Aware”. For more information about credit cards, please do check our other articles

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