CIBIL Score: If you want your CIBIL score to remain good due to your credit card, then for that you need to know some things.

There are some tips by following which you can keep your CIBIL score good based on your credit card. In such a situation, now you must be wanting to know how this is possible. How your credit card can help keep the CIBIL score right.

What will happen if the credit card is closed?

If you have a 5-6-year-old credit card and are thinking of closing it for any reason, then think seriously once before taking this decision. It is possible that suddenly closing the credit card (CIBIL Score) may hurt your CIBIL score.

If you want complete information about such rules, then definitely read this special news of ours and avoid making any such mistake, which may cause your CIBIL score to deteriorate.

Increasing use of credit card

In today's time, the needs of the people have increased a lot, and along with this the use of credit cards has also increased. Compared to earlier, the use of credit cards has become common now. More than half of the country's population uses credit cards for their financial work.

If a credit card is used with correct information and understanding, then it helps you a lot in financial matters. This also keeps your CIBIL score good.

Pay credit card bills on time.

If you have a credit card and use it from time to time, then definitely know some rules. If you do not pay your credit card bill on time, then now you need to be alert.

The mistake you are making by not paying the bill on time has a direct impact on your CIBIL score. This can spoil your CIBIL score.

At the same time, some people think of closing their old credit cards. They should think properly before making this decision. They should first get complete information about what steps can be taken in such a situation. How can we protect our CIBIL score from getting affected by this?

Effect of closing credit card on CIBIL score

If you are closing your credit card for any reason, then before that know its advantages and disadvantages. If a person closes his old credit card, then all his old credit history also gets deleted. On the other hand, a more old and accurate credit history helps in keeping the CIBIL score excellent.

Old credit history has a positive effect on your CIBIL score. On the other hand, if your old credit card is 5 years old or more and now you are closing it, then know that this can reduce your average credit history (CIBIL Score). This will also reduce your CIBIL score.

Closing a credit card will also affect CUR.

If you are closing your credit card, then it is not that only your credit history will be deleted. It will also affect your credit utilization ratio (CUR). This means that by doing this your CUR can increase. This will also have an impact on your CIBIL score.

Understand it like this.

If you want to understand the above thing, then you can understand it with this example. Suppose the limit of your credit card was two lakh rupees. Now you have closed the card with this limit, by doing this your current credit limit (CIBIL Score) will be reduced to only 1 lakh rupees, then your credit card ratio will increase in such a situation. This will hurt your CIBIL score.

How to close your credit card

If you want to close your credit card, then keep some special things in mind. By doing this you can avoid getting into any financial crisis.

At the same time, if there is no annual fee on your credit card, then it would be better that you keep your old credit card closed and also keep your CIBIL score better.

Still, if you want to close your credit card, then it is important that you first use your other cards only up to a certain limit. If you do this, your credit utilization will decrease. This will help you in keeping your CIBIL score right.

It is beneficial to keep the old credit card active.

If you are closing your credit card, then take special care that you have deposited all your pending bills. Never decide to close your card without clearing the bill.

By the way, experts say that if your credit card is very old, then it is beneficial to keep it active. In such a situation, you should decide on closing the credit card very thoughtfully.

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