Closing Your Credit Cards Early ?
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This is something I recently learned about and truth be told I was completely shocked by it. As someone who has previously closed one of my Credit Cards, I am indeed someone who has gone through this, and even though I didn't know about this at that time I know now so I want to relay this information to everyone else. So if you have a Credit Card and you want to switch to a new and better Credit Card with better features then I will really advise you to keep your Old Credit Card Active as Closing that Card may affect your CREDIT SCORE.
I got my first Credit Card by keeping a Fixed Deposit in the Bank and taking out a Credit Card with that as collateral so when my Fixed deposit matured I thought it was obvious to just surrender my Credit Card and get an Upgraded one as my Credit Record was awesome. But little did I know that Closing a Credit Card impacts Negatively on your Credit Score and that was exactly what happened to me. It seems Holding onto your Old Credit Card comprises about 10-15 percent of your Credit Score as the period you a hold a credit card matters. So if you close your Old Credit Card that will definitely affect your Credit Score and in my case, my Score dropped a whole 100 points. Yeah, that was a Bummer.
Hello @arunava
This you comment I did not know, but it is an important piece of information. I moved a few years ago to a new country, and here I still don't have credit cards, however, when I lived in Venezuela I did have several cards, working in my home country as a doctor was supposed to give me certain advantages, but I never closed any of them, I always kept them, and focused on using the one that brought the best benefit for the month.
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I didn't know about this information, I really started learning about the need for a good credit score recently, I learnt that it is good to take a loan and pay back even before priblems occur.