![]() ![]() By closing unused credit cards, you can reduce your credit limit and minimise the temptation to overspend. Additionally,Ĭlosing unused credit cards can help you avoid paying unnecessary annual fees or other charges, especially if you're not taking advantage of the card's benefits.Ĭlosing unused credit cards can also be a good idea if you're struggling to control your spending and need to reduce your credit exposure. For instance, if you have several credit cards that you're not using, closing them can simplify your financial life and reduce the risk of fraud. It can be a good idea to close your unused credit cards under certain circumstances. Finally, closing a credit card account can also reduce the types of credit you have, which is another factor in calculating your credit score. If you have a long credit history, closing a credit card account can reduce the average age of your accounts and hurt Additionally, closing a creditĬard account can shorten the length of your credit history, which is an essential factor in calculating your credit score. First, closing a credit card reduces your available credit, which can increase your credit utilisation rate and decrease your credit score. However, closing a credit card can negatively impact your credit score. Additionally, if you're closing a credit card that has a history of late payments,Ĭlosing the account can prevent further damage to your credit score. Lowering your credit utilisation rate can help increase your credit score. Rate, which is the amount of credit you're using compared to your total credit limit. If you have a high balance on a credit card that you're not using, closing the account can help you minimize your debt and improve your credit utilisation How closing a Credit Card impacts your credit score?Ĭlosing a credit card can have both positive and negative impacts on your credit score. Let us explore the pros and cons of closing a credit card account, factors to consider before making a decision and alternative options to help you manage your credit effectively. The right move for your financial upkeep. While cancelling a credit card may seem like a straightforward decision, it's important to understand the potential consequences and whether it's However, there may come a time when you consider closing a credit card account, whether it's to reduce your credit exposure or simplify yourįinancial life. Pradhan Mantri Jeevan Jyoti Bima YojanaĬredit cards can be a valuable tool to manage your finances, build a credit history and earn rewards.Commercial Vehicle & Construction Equipment Loan. ![]()
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