Impact of credit card closure on Cibil

[mikrotik]

Hi Guys,

I have recently acquired Indusind Credit card and I am not at all happy with the bank itself. The card is less than a month old. What will be the impact on my CIBIL if I close this card now?

 

[mhsabir]

Account closures - impact will be there, but since its a new card, it will probably be low. Generally age of older accounts matter more. Is there a fee or charges involved? If not, maybe keep it but not use it. Also keeping this card will keep your utilization percentage low and hence be favorable.

 

[mikrotik]

My overall utilization is pretty low. I have overall credit limit of ~40L and usage is fairly low.

My issue is not the card but the bank and its employees. You do see bonehead employees at branch but in majority of the cases when you reach cluster head, things are much better. But here even when I reached out to MD office, they are still being a$$holes.

 

[markiv]

Closure as such dosent have impact on cibil score. But in major banks, retail branch dosent handle credit card queries directly

 

[mhsabir]

Age of accounts does make some difference. It might be a small difference, but it does. And since this is a new account, it should be even lesser.

 

[manu1991]

Unless you are planning to get a large debt like a home loan anytime soon, it will not matter at all, any small decrease will be temporary at best. Most credit risk models use dozens of variables and age of one account isn’t likely to have a large weight

 

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[SVK]

I am planning for Home Loan in next 5-6 months, so I better keep 11 year old Citibank Credit Card I suppose.

 

[mhsabir]

Yes - agree with @manu1991 - it should really be very less. And yes, @SVK maybe just keep it till you get the loan