Need help to reduce my credit cards - Need suggestion on which one to close

[helloworld]

Thanks @DeadFella and @helloworld for sharing the views. Appreciate much.

As for me personally, I am not a card enthusiast, card influencer, or card collector.
I am just a common man who carry a few credit cards to meet my regular expenses.
Apart from that, I am not aiming to collect 25-30-50 cards and that's not my whole point.

As of now I am having these cards, out of which I may close one or two soon.
Also, I don't travel much and stay in hotels so reward points, hotel vouchers and airmiles don't excite me much.
To cover my daily needs just 4-5 cards are more than sufficient.

Some 5-10% cashbacks or discounts on purchases and some lifestyle benefits is all what I look for.
With my lifestyle and expense keeps evolving, so do the cards as well.

less is better for you..

 

[codenerd]

No use of closing ltf cards unless you're having excess credit to income ratio

What is an ideal or acceptable ratio?

 

[sunit123]

What is an ideal or acceptable ratio?

Credit utilization shud be less than 30%

 

[cardio_guy]

What is an ideal or acceptable ratio?

Not sure but your total credit limit could be less than 10 times your annual income. If your income is 10L, then keep the total credit limit at 1cr.
Some banks don't issue credit card if you are over leveraged. It's just like taking an unused overdraft loan. No harm, but no use also.

 

[drabhishekladdha]

Hello All,

I have the following active CC (paid and ltf), need inputs to decide which one to close:

Paid:
1. AMEX MRCC (main driver, mostly doing 20K+ transactions/month).
2. Airtel Axis (Only for Airtel BB and ISP recharge) - annual fee deducted in recent statement. (Planning to close).
3. SBI Cashback (Used for nearly every online transaction - FK/Amazon/FirstCry/Zomato/Swiggy/etc.)

LTF:
1. ICICI APAY (mostly not useful due to SBI cashback) - Oldest card, cannot close as it will hit CIBIL adversly.
2. OneCard Metal (Federal)
3. Indusind Legend (Planning to close)
4. ICICI Rubyx (Planning to close)
5. IDFC Wealth
6. Tata Neu Infinity (used for all UPI spends + utilities).
7. HDFC Regalia (getting FYF upgrade to DCP). - Should not close as this will pave the way to Infinia.

Thank you!

I had similiar start as you did , got so many cards one after other

I had closed Axis Ace ,my zone Idfc select , Icici amazon pay , Icici Manchester card , Sbi simply click , One card ( 7 cards closed )

You can Close Icici Amazon pay ,one card in addition to 3 you are planning to close

 

[sunit123]

Not sure but your total credit limit could be less than 10 times your annual income. If your income is 10L, then keep the total credit limit at 1cr.
Some banks don't issue credit card if you are over leveraged. It's just like taking an unused overdraft loan. No harm, but no use also.

As per my understanding, credit limit cannot exceed annual income

 

[codenerd]

Thanks a lot! By this logic i think I am have my CL at 2-3x of my salary currently. Means still a long way to go🤣

Not sure but your total credit limit could be less than 10 times your annual income. If your income is 10L, then keep the total credit limit at 1cr.
Some banks don't issue credit card if you are over leveraged. It's just like taking an unused overdraft loan. No harm, but no use also.

 

[MOhit __]

1. ICICI APAY (mostly not useful due to SBI cashback) - Oldest card, cannot close as it will hit CIBIL adversly

Many individuals believe that closing our oldest card will have an impact on our Cibil score, although Cibil denies this.

 

[sunit123]

Many individuals believe that closing our oldest card will have an impact on our Cibil score, although Cibil denies this.

View attachment 79669

Pls close and share the SS of CIBIL score after 3 months

 

[helloworld]

Pls close and share the SS of CIBIL score after 3 months

I closed 5+ years ago credit card and it didn't impacted for me. Majorly, which I assume because have another one with 4+ years. It doesn't impact, IMO (there is no proof because it involves lot of parameters) as long as you have another one close by that can contribute.

Btw, my cibil age still showing as 5+ years (since oldest closed credit card).

 

[sunit123]

I closed 5+ years ago credit card and it didn't impacted for me. Majorly, which I assume because have another one with 4+ years. It doesn't impact, IMO (there is no proof because it involves lot of parameters) as long as you have another one close by that can contribute.

Btw, my cibil age still showing as 5+ years (since oldest closed credit card).

Closed account remains in CIBIL report for up to 10 years...After 10 years, your score and credit history duration will collapse suddenly.

 

[helloworld]

Closed account remains in CIBIL report for up to 10 years...After 10 years, your score and credit history duration will collapse suddenly.

by that time hope I'll have another card >5y, and have sufficient score to get loans/cards. not hoping this old closed card will be any beneficial at that time.

>750 enough for unsecured loans, >770 enough for home loans, which we can generate with any single card. Credit cards always random as long as >750. Moreover, IMO this all depends on income at that time along with various parameters.

//just my opinion..

 

[Trust Me]

Closed account remains in CIBIL report for up to 10 years...After 10 years, your score and credit history duration will collapse suddenly.

What is this based on? Any reference you can point to?

My credit history is 24+ years old, and my oldest active account is just ~9.5 years old. None of my older closed account information has been removed by CIBIL!
.

 

[sunit123]

What is this based on? Any reference you can point to?

My credit history is 24+ years old, and my oldest active account is just ~9.5 years old. None of my older closed account information has been removed by CIBIL!
.

Check following link

What Does

Learn what it means to have a ‘closed account' listed on your credit report, how long these accounts remain on your credit file.

www.experian.com

 

[helloworld]

Affects:

• Secured (Credit Mix):
  Secured accounts have a slightly higher score compared to unsecured accounts, not much but for differentiation purposes.
• No Other Account Contributing to the Score:
  If there are no other active accounts contributing to the credit score, it may affect the overall score due to shorter credit history.
• Excessive Enquiries for New Credit Cards:
  Frequent applications for new cards can impact the score due to excessive inquiries. This is not directly related to closed accounts but may have an effect if no other accounts are contributing.

In a way, it doesn't matter to close your old credit card (say, *** bank that you opened 5+ years ago) as long as another card/loan contribute that score (say, ^^^ bank that you opened 3+ years ago). It only affect, if you completely starts from '0' without maintaining other active credit contributions.

 

[sunit123]

View attachment 79724

Affects:

• Secured (Credit Mix):
  Secured accounts have a slightly higher score compared to unsecured accounts, not much but for differentiation purposes.
• No Other Account Contributing to the Score:
  If there are no other active accounts contributing to the credit score, it may affect the overall score due to shorter credit history.
• Excessive Enquiries for New Credit Cards:
  Frequent applications for new cards can impact the score due to excessive inquiries. This is not directly related to closed accounts but may have an effect if no other accounts are contributing.

In a way, it doesn't matter to close your old credit card (say, *** bank that you opened 5+ years ago) as long as another card/loan contribute that score (say, ^^^ bank that you opened 3+ years ago). It only affect, if you completely starts from '0' without maintaining other active credit contributions.

Obviously closing an account increase credit utilization and also results in shorter credit history so it impacts very negatively

If today your credit history is 5 year old and you close the account...After 10 years when closed account is removed, you credit history will drop from 15 years to 10 years...

Do not listen to what some people mention on this forum..It is half baked youtube gyaan....Do your own study before any conclusion.

 

[drabhishekladdha]

I think we all think too much about credit score.
Just pay your dues on time and forget rest