CLOSED CREDIT CARD. DEVALUATION PANDEMIC

[kunalcc]

Thanks everyone for the discussion!

 

[vine]

One man's garbage is another man's treasure.

 

[desiviru]

I took my second credit card just one month after first credit card. So closing first card did not impact age of credit because both card has same history. Getting rid of garbage product is important, even if it is free.

I have sufficient combined credit limit on other cards. I use 5% utilisation and I always pay total due on time. So, whenever any card becomes garbage, its better to replace it

No worries, bro. You are free to do things with the wisdom you have.

You didn't get what I emphasized on. I am also of opinion that it's better to close than to under utilize a card. You age is not much to understand deeper meaning in long posts I make here.

 

[SonyTom]

It falls under category of under-utilization of credit facility. Both under and over-utilization is a red flag. It sends signal to bank that person take credit limit but don't utilize it make you a dummy borrower and then new Finstitues (aka Financial Institutes) deny new. They be like, Yeh card lega, use nahi karney wala. Under utilized cards also affect limit for new cards. If old card has history in cibil of 40% use on regular basis like once in a quarter atleast you are utlizing 30% of limit then your new card company/bank will offer you a better credit limit. That's why I said in past, Credit Card are not based on few factors. There are many and every Finstitution check different data for issuing. Some people take Bank CC limits of 1 crore but utilize only 10% of it. They block that money as bank don't know when you will use all of it so it becomes difficult for them to have those funds for under-utlization customers. This also affects their new borrwers. RBI then pushes them to either reduce those limits or ask customer to regularly use it. But as bank know customer won't agree so they left it on their customer's wisdom.

Here most people aren't aware of fact that whenever a bank creates a credit card for you, it is just an unsecured credit limit generated in your name as loan and the bigger a bank credit limit requirement is, they draw or can draw more and more money from RBI by showing their credit book. Whatever money is given to banks by customers, they can't keep it to themselves and have to apply funds via loans, other fin schemes or credit cards. Surplus fund is kept by RBI which gives 4% interest to banks while banks when take this money back from RBI, they get it at 6%. This is called repo and reverse repo. So RBI bhi 2% se kaam chalata hai apna aur customers ko RBI ombudsman ke through paisa baant deta hai woh bhi dubara banks se leke ya unko direct karke.

HDFC faltu mein CC ni baant taa firta bhai. Customers ko credit card chipka ke usko khud withdraw ki power mil jati hai upar se insurance companies ki chaandi jo fraud ke against protection dete hai. Ek credit card, 4-6 departments ke liye benefit deta hai.

Yeh khel aam insaan ki samajh se parey hai. Someone rightly said, "Banks are the biggest legal scams humans ever pulled off."

Salute to you for taking so much time and effort to type such long and meaningful posts

 

[CardCraftsman.]

As per the T&Cs:
Categories not included in the 10X Reward Points threshold: Rental & Property Management, Utility, Insurance, Government Services, Education and Wallet Load.

Then, how is it a decent card for wallet load & government spends?

IDFC doesn't offer unsecured credit card in our state so I personally don't have it. It's still mentioned on many wallet reload list on different platforms so I was under assumption that it still gives RP on wallet reload but after your message, I checked it and found that it was devalued this year.

Still the card is decent for some people as it offers 4 railway lounge without any spends criteria.

 

[CardCraftsman.]

We need to get out of the Indian mentality of having everything for free or cheap. What is the point of keeping garbage product even if its free. I have other credit card for bank discounts

Common bro, I was just asking if you keep 1 card from each bank for sales offer.

 

[SamPtnk]

Good no point in keeping trash cards
1-2 good cards is sufficient

 

[sanjay.01]

So, we need a new credit card table along with the main benefits of each category of CC.

 

[Sourabh_13]

So, we need a new credit card table along with the main benefits of each category of CC.

What is a problem with the old table with old and new card benefit details?

 

[Lobogris]

I closed Almost 16-17 cards most are LTF cards

I want to close some cards but just can’t make myself do it. Even paid cards that I don’t use like SBI BPCL, Union Bank Rupay and IDFC Power + etc. I just pay the 500 per year rather than closing them. Even SBI Cashback is hardly used after I got Infinia but I would rather pay the 1200 fee than close it.

 

[akshayhs]

Even SBI Cashback is hardly used after I got Infinia but I would rather pay the 1200 fee than close it.

Instead of paying it next time, see if there is a fee waiver in the app even if you are sure you haven't met the spend threshold for waiver.

 

[asahi]

I want to close some cards but just can’t make myself do it. Even paid cards that I don’t use like SBI BPCL, Union Bank Rupay and IDFC Power + etc. I just pay the 500 per year rather than closing them. Even SBI Cashback is hardly used after I got Infinia but I would rather pay the 1200 fee than close it.

Close them, even if the cibil score got reduced it will be bounce back in no time, my current score is 772

 

[kunalcc]

One man's garbage is another man's treasure.

I agree on that - credit card depends on individual needs.

However some credit cards are actually garbage for entire human population. We need to get rid of those card asap.

 

[kunalcc]

Common bro, I was just asking if you keep 1 card from each bank for sales offer.

I have one card from major bank. However its upto luck which website gives offer on which card