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POSTED BY ON July 10, 2012 6:38 pm COMMENTS (10)
I have 3 Credit Cards and my Dues on all the cards have reached to the maximum limit. I am in the process of closing my credit cards. I have the below queries:
a) Should I close 2 CC by making the full payment and keep 1 active and make the entire payment on the 1 active CC? In one of the question I see that it was mentioned to keep at least 1 CC.
b) Will my CIBIL ratings get affected if I close 2 CC by making full payment.
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I recently surrendered 2 of my CCs which I had inadvertently received from two banks while opening salary accounts with them.
The guys who come for the opening of salary accounts deliberately push you for CCs unknowingly.
It was really easy to surrender my cards as I had no outstanding balance on them.
Vikas
Having / applying for a CC is not an issue, as long as you can discipline yourself in not overspending more than your saving. CC are excellent instruments which offer free credit for around 56 days, if used well. I would always try to have 2-3 cards as you never know when you need short term credit owing to emergencies.
Thanks all for the valuable information.
I don’t want to comment on the CCs cos it’s me who took the card and I am responsible for the mistake so got a good lesson from my mistakes.
Just got to know today that my score is 741 so time for me to improve.
I my opinion 3 credit card will not harm you in any way.
Vikas ….it’s important to revisit how you aquired them , voluntary or forced , if voluntary what was the carrot , did it really turn out to be carrot or the stick in lieu of carrot , based on your question it appears that you are contemplating to avoid traps by holding 3 cards , the answer lies in how impulsive you are , you know yourself best than any of us here , and you know the answer best if you mull over the questions . Also the risk of losing one of them sometimes may bring unwanted risk unless you are very particular and your experience so far .
very nice and apt reply !
Vikas
Your issue is not the 3 cards , its over utilizing and not handling them properly , you are in much better position right now compared to others who cry blood !
All you need to do is pay off our full outstanding loan amount , dont close your cards, keep them , but just make sure you use them like debit cards ! .. Use the card only for the amount which you are sure you can pay at the end of the month , over the next 6 months, you can see your score moving up fast .
Manish
Hello Ashal,
I am referring to actual outstanding amount and not the settlement amount.
Thanks,
Vikas
Dear Vikas, in this case, the full settlement ‘ll be treated as a positive sign for your CIBIL report. Although as you have exhausted full limit on all 3 cards, it’s a negative. In my opinion, instead of surrendering the cards, Stop using regularly & out of the 3 cards, use one for routine expenses whereas other 2 should be used sparingly once in a while.
Thanks
Ashal
Dear Vikas, please confirm that you are telling to pay settlement amount or actual outstanding amount?
Thanks
Ashal