Hello friends, How are you all ?? Wishing you all happy and prosperous life Ahead.

Credit card become necessary financial instrument Which makes your life easier. But today's issue is what I want to discuss. If you have a credit card that you do not use much, should you close it or keep it open ?? However, terminating your credit card should not be rushed, even if it is no longer required.

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Get rid of Annual Fees

If you have a credit card that you are not using, it would be better to close it with the bank as credit card has an annual fee. There are different banks impose high amount of fees for the services of using Credit card., so whether you use the it or not, you have pay for annual fee for credit card. So it is advisable to close the account, if you are not frequently using the credit card services to avoid Recurring Expenses.

Will help in overspending

At times, individuals may find themselves inclined to overspend due to the easy accessibility of credit cards, so it is advisable to close the Unnecessary credit cards to avoid the overspending money habits, Which help you to manage your financial Budget. Another Reason is that having a many credits cards can be challenging to remember the Billing cycle, due dates and deals and offers by the company.

Avoid Identity Theft

As we know that having a numbers of credit card which means of higher chances of identity theft.Credit card holders are a treasure trove of personal information which is risky. If you are keeping your credit card to show off and are not using it frequently, then it is wrong.
If your credit card is stolen even by mistake, then personal details would get inti wrong hands Then your bank balance may also be at risk. Be careful while keeping your credit card.

Credit score is impacted by two different things: credit utilisation ratio (CUR) and the length of your credit history. Closing the card increases the former—CUR— and shortens the latter, both working against your score.

If you close your credit card, your CIBIL score will be affected, which will lead to problems in getting a house loan, personal loan on lower interest Rate as it bring out the credit scores. Keep all the above point in mind before the closure of your credit card.

I have already mentioned in the earlier that I do not use any credit card unless there are some great deals and offers on it. I know well that even if by mistake I forget to give credit card bill before due dates, I will have to pay huge penalty which i can't afford. I believe that credit card should be used only when there is a real need and not for unnecessary expenses. If you have a credit card that you don't use frequently, I suggest you close it because banks charge a lot of unnecessary charges.

Thankyou 😃😀

@gargi 🙏🏻🇮🇳

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