Does closing a credit card improve our CIBIL score?

[suhailmz]

Hi, my oldest credit card is about 6 years age & I have applied for 3 cards in 2022. In total I hold 5 credit cards. My goal is to improve CIBIL crore which is around 750 currently. If I want to close a recently acquired credit card (5 months old), would it improve my CIBIL score? The card is LTF (icici coral), but I don’t really find it useful. Please help.

 

[Patil007]

If LTF then why to close?

ICICI has most offers online use there.

 

[Proffesor]

Hi, my oldest credit card is about 6 years age & I have applied for 3 cards in 2022. In total I hold 5 credit cards. My goal is to improve CIBIL crore which is around 750 currently. If I want to close a recently acquired credit card (5 months old), would it improve my CIBIL score? The card is LTF (icici coral), but I don’t really find it useful. Please help.

Yeah if LTF why u need to close it?
If u Want to close it, it's effect would be less as it is just 5 months old, though it depends on the avg credit history.
This article may help u decide:

Does Cancelling a Credit Card Affect Your Credit Score? - CRED

How does cancelling a credit card affect your credit score? - closing a credit card can damage your credit score, especially if it has been open for several years. Know more about how closing your credit card affects your credit score.

cred.club

 

[Walter White]

Hi, my oldest credit card is about 6 years age & I have applied for 3 cards in 2022. In total I hold 5 credit cards. My goal is to improve CIBIL crore which is around 750 currently. If I want to close a recently acquired credit card (5 months old), would it improve my CIBIL score? The card is LTF (icici coral), but I don’t really find it useful. Please help.

Close a credit card only if it is comes with an annual fee and you feel it's not worth paying that amount of annual fee.

There is no point in closing a LTF Credit Card because even though you are rarely using it (even make 1 transaction of Re. 1 in 3 months just to keep it active), it will contribute towards improving your credit score as it increases your total available credit and average age of accounts.

 

[panu24]

What do you people think about flipping (upgrade/downgrading) credit card. In this case existing card gets closed and we get new credit card. Will this affect Cibil score? Consider here that there is no existing LTF card.

 

[anirban.choudhuryanirban.choudhury is verified member.]

I

What do you people think about flipping (upgrade/downgrading) credit card. In this case existing card gets closed and we get new credit card. Will this affect Cibil score? Consider here that there is no existing LTF card.

I don’t think upgrading credit card works that way, your credit history does not changes while you upgrade

 

[panu24]

I

I don’t think upgrading credit card works that way, your credit history does not changes while you upgrade

Right but on Cibil report old card is seen as closed card. This closed card report will affect cibil score?

 

[anirban.choudhuryanirban.choudhury is verified member.]

Right but on Cibil report old card is seen as closed card. This closed card report will affect cibil score?

Not sure about this closed part, all my upgraded cards are shown as active , only cards that I have explicitly cancelled come as Closed on my Cibil

 

[panu24]

Not sure about this closed part, all my upgraded cards are shown as active , only cards that I have explicitly cancelled come as Closed on my Cibil

I have done SBI card upgrades and one downgrade and on my Cibil report I can see old cards closed dates. Hence got this question.

 

[suhailmz]

Not really. My oldest card is of 7 years age & the same has been upgraded 3 times, however CIBIL shows the oldest card as 7 years. If you explicitly close the card, then it might happen.

 

[Dr. Drake]

Right but on Cibil report old card is seen as closed card. This closed card report will affect cibil score?

It will close the old card but the new upgrade card will have same start date as the old one. verified!!

 

[panu24]

It will close the old card but the new upgrade card will have same start date as the old one. verified!!

Thank you very much for finding that. I only keep looking into closed date. You are right opened date remain same for those old cards as well as current card.