Cibil impact on credit card closure

[b4bhar]

Guys, what would be the cibil impact/ hit if i take a new credit card and close it within 11-12 months before annual fee?

Thank you!

 

[350modena]

Guys, what would be the cibil impact/ hit if i take a new credit card and close it within 11-12 months before annual fee?

Thank you!

+ 1 😅

 

[newinnov]

Almost none if your credit history is 3+ years and if it's not the only card / oldest card
ps - depends on card utilization also

 

[bing1309]

Nope nothing, closing a card doesn't mean your score will go down it's just an account, where your liabilities are more and clearing your debts, that infact increase your stable score to higher score ( kindly note if single loan then yes score will go down) if multiple no impact if in equal ratio in secured and unsecured and when unsecured is becoming less score goes up

 

[350modena]

Nope nothing, closing a card doesn't mean your score will go down it's just an account, where your liabilities are more and clearing your debts, that infact increase your stable score to higher score ( kindly note if single loan then yes score will go down) if multiple no impact if in equal ratio in secured and unsecured and when unsecured is becoming less score goes up

What happened when there is no secured credit and only CC - unsecured credit and we close a recently opened card ?

 

[bing1309]

What happened when there is no secured credit and only CC - unsecured credit and we close a recently opened card ?

Then yes score goes down and getting one more cc of unsecured is difficult.

 

[350modena]

Then yes score goes down and getting one more cc of unsecured is difficult.

Got it. So what's the way forward? How to avoid a cibil score drop? Close after 1 year ?

 

[helloworld]

Got it. So what's the way forward? How to avoid a cibil score drop? Close after 1 year ?

always open credit line continuous in one way or another. never close it. never open too much.

pay on time, apply moderately.

 

[helloworld]

Guys, what would be the cibil impact/ hit if i take a new credit card and close it within 11-12 months before annual fee?

Thank you!

anything temporary and settles in 3-6 months. nothing much impact if other credit products exist.

 

[bing1309]

Got it. So what's the way forward? How to avoid a cibil score drop? Close after 1 year ?

Open 3 to 4 cards and close 1

 

[b4bhar]

Open 3 to 4 cards and close 1

If we already have 7 cards, closing the newest one doesn't have any impact i guess?

 

[bing1309]

old or new, if you close wont have a impact

 

[bing1309]

Guys, what would be the cibil impact/ hit if i take a new credit card and close it within 11-12 months before annual fee?

Thank you!

keep in mind about Credit card Churning, banks may deny the card by seeing the number of closed accounts in coming years. Hence ensure the card be used for at least 2 years

 

[b4bhar]

keep in mind about Credit card Churning, banks may deny the card by seeing the number of closed accounts in coming years. Hence ensure the card be used for at least 2 years

I have around 8 to 9 cards and i didn't close any of them till date. So, if i take a new card now but close it within 11 months, will that come under credit card churning and banks deny me cards?

 

[bing1309]

I have around 8 to 9 cards and i didn't close any of them till date. So, if i take a new card now but close it within 11 months, will that come under credit card churning and banks deny me cards?

Nope nothing it's understandable.

 

[b4bhar]

Nope nothing it's understandable.

I actually want to try out tata neu infinity card but only getting it FYF. Also, converting it to LTF is also not possible given the critical stand of the bank these days. So wanted to make sure this doesn't have any impact if i close the card before generation of the annual fee.