Closing Credit cards

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Deal Cadet
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Have 11 Active credit cards

Using hardly 1-2 or max 3 cards.

checking Score simulator on CIBIL, found closing credit card is actually improving one’s score. Do’nt know if it is showing right.

have 2 LTF cards with limit above 2 L.
and 3 500rs./annual fee cards with limit above 3L.

closing LTF credit cards good idea ??

Called for Closing of a LTF card,

bank officer : "sir, LTF card he ye , close kyun karna " “Lifetime Free he, ise close mat kijiye”, “koi LTF card close nahi karta”

then I droped the idea smile

going to apply a secured loan(home loan) in next 3-5 months, having so many unsecured loans(as credit card) may effect my loan application. Though have a credit depth of 9 years. which may help

17 Comments  |  
13 Dimers
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Critic
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Close those cards first which have an annual fee as well as used rarely. Which cards you have btw, mentioning them will help in giving better suggestions.

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Deal Cadet
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guest_999 wrote:

Close those cards first which have an annual fee as well as used rarely. Which cards you have btw, mentioning them will help in giving better suggestions.

LTF cards:

ICICI Coral (X)
ICICI Amazon (X)
Axis MyZone (X)
Indus Bank Pinnacle (recently applied stuck_out_tongue will give Joining Fee)

Annual Fees Card:

SBI BPCL (X)
SBI OLA
AXIS PRIVILEGE (fees 1500/annum): already applied for Closure. (X)
SBI FBB (X)
AXIS FLIPKART (X)
HDFC IMPRA
HDFC JUMBO CARD (not a typical CC, hope hdfc will mark it closed on CIBIL/Other Bureau once I cleared all outstading) (X)

(X) : marked for closure

yaa… so 10 cards only ..not 11.

Tried two times for AMEX cards, don’t know why they rejected my app, not disclosing the reason,may be location issue or may be the number of existing credit card issue.

same with SCB Ultimate gave a preapproved offer with 3L limit, then said sorry we unable to process your request currently.

But now decided to keep my card counts to just 1-2 only. showing too many different active loans on credit bureaus is not good . smile

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Deal Cadet
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ZitOO wrote:

LTF cards:

ICICI Coral (X)
ICICI Amazon (X)
Axis MyZone (X)
Indus Bank Pinnacle (recently applied stuck_out_tongue will give Joining Fee)

Annual Fees Card:

SBI BPCL (X)
SBI OLA
AXIS PRIVILEGE (fees 1500/annum): already applied for Closure. (X)
SBI FBB (X)
AXIS FLIPKART (X)
HDFC IMPRA
HDFC JUMBO CARD (not a typical CC, hope hdfc will mark it closed on CIBIL/Other Bureau once I cleared all outstading) (X)

(X) : marked for closure

yaa… so 10 cards only ..not 11.

Tried two times for AMEX cards, don’t know why they rejected my app, not disclosing the reason,may be location issue or may be the number of existing credit card issue.

same with SCB Ultimate gave a preapproved offer with 3L limit, then said sorry we unable to process your request currently.

But now decided to keep my card counts to just 1-2 only. showing too many different active loans on credit bureaus is not good . smile

That’s a good decision .
Credit card application rejection also affects our CIBIL score.

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Deal Cadet
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Keep old and ltf cards. Discard others

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Deal Newbie
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Keep the oldest cards and those which are LTF.

Rest close them.

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Deal Newbie
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ZitOO wrote:

LTF cards:

ICICI Coral (X)
ICICI Amazon (X)
Axis MyZone (X)
Indus Bank Pinnacle (recently applied stuck_out_tongue will give Joining Fee)

Annual Fees Card:

SBI BPCL (X)
SBI OLA
AXIS PRIVILEGE (fees 1500/annum): already applied for Closure. (X)
SBI FBB (X)
AXIS FLIPKART (X)
HDFC IMPRA
HDFC JUMBO CARD (not a typical CC, hope hdfc will mark it closed on CIBIL/Other Bureau once I cleared all outstading) (X)

(X) : marked for closure

yaa… so 10 cards only ..not 11.

Tried two times for AMEX cards, don’t know why they rejected my app, not disclosing the reason,may be location issue or may be the number of existing credit card issue.

same with SCB Ultimate gave a preapproved offer with 3L limit, then said sorry we unable to process your request currently.

But now decided to keep my card counts to just 1-2 only. showing too many different active loans on credit bureaus is not good . smile

it would be great if banks close and report the status as “closed” but sometimes bank just suppress the card account history, bank will kind of SHIFT+DELETE the card account from ur cibil report like ur card never existed and if bank suppresses ur credit card then ur cibil score will remain same…

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Deal Lieutenant
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ICICI Amazon (X)
AXIS FLIPKART (X)
Why are u planning to close these two also?

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Deal Cadet
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aniket1587 wrote:

it would be great if banks close and report the status as “closed” but sometimes bank just suppress the card account history, bank will kind of SHIFT+DELETE the card account from ur cibil report like ur card never existed and if bank suppresses ur credit card then ur cibil score will remain same…

May be some bank can do this, but till now good experience with icici, hdfc , sbi cards , closed few in past in 2016,2017 , they are showing closed with a closing date.

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Deal Cadet
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caks2006407 wrote:

ICICI Amazon (X)
AXIS FLIPKART (X)
Why are u planning to close these two also?

Will keep then grin.  Popular cards though in current time .

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Deal Cadet
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alkgup wrote:

why to close LTF card?

thinking to close but not yet decided .

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Deal Cadet
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ZitOO wrote:

LTF cards:

ICICI Coral (X)
ICICI Amazon (X)
Axis MyZone (X)
Indus Bank Pinnacle (recently applied stuck_out_tongue will give Joining Fee)

Annual Fees Card:

SBI BPCL (X)
SBI OLA
AXIS PRIVILEGE (fees 1500/annum): already applied for Closure. (X)
SBI FBB (X)
AXIS FLIPKART (X)
HDFC IMPRA
HDFC JUMBO CARD (not a typical CC, hope hdfc will mark it closed on CIBIL/Other Bureau once I cleared all outstading) (X)

(X) : marked for closure

yaa… so 10 cards only ..not 11.

Tried two times for AMEX cards, don’t know why they rejected my app, not disclosing the reason,may be location issue or may be the number of existing credit card issue.

same with SCB Ultimate gave a preapproved offer with 3L limit, then said sorry we unable to process your request currently.

But now decided to keep my card counts to just 1-2 only. showing too many different active loans on credit bureaus is not good . smile

TLDR: Keep all LTF and old cards, ditch the rest if you want;

OP: Closing older account decreases the cibil score most of the times; hence it’s not advised to close old accounts, especially your oldest one !
LTF cards don’t do any harm, so don’t bother closing them unless it gives your cibil score a push.
My suggestions as below:
ICICI Coral – Keep it as it’s LTF, also you will need it for any ICICI offers (you may ditch it only if it’s a new card)
ICICI Amazon – Keep it as it’s LTF, one of the best cards ever.
Axis MyZone – Keep it as it’s LTF, also you will need it for any Axis offers (you may ditch it only if it’s a new card)
IndusInd Pinnacle – Keep it as you paid for it, one of the best cards.
SBI BPCL – Ditch it unless you spend a lot on petrol.
SBI Ola – Ditch it unless you travel a lot by Ola, or use ClearTrip.
SBI FBB – Ditch it unless you shop a lot offline on those stores.
*You may keep one of the SBI cards for bank specific offers if you want.
Axis Privilege – Ditch it. Period.
Axis Flipkart – Keep it as it’s near LTF with just 12K spend on Flipkart, also one of the best cards.
HDFC Impra – Never heard of it; I believe you are referring to some premium cc; anyways good to keep one HDFC card.
HDFC Jumbo – Never heard of it, ditch it maybe.

Having decent number of cards, with a good credit score is always beneficial; I know CCs are unsecured loans, but as long you have a good history, you will face no problem in getting a secured loan.

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Deal Newbie
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Before you decide anything… just call each bank & ask, if they are taking request for cancellation. I’m trying from the moment – Lockdown started. They are not taking any requests for cancellation, for mobile number updating etc etc. Only thing, they helped in blocking card. And, Reissuing card started just one month back. As they are working with small staff that too from home.
I can hear different kind of sounds when i was talking with them.

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