If you do not use your credit card, know how much loss can happen if it is closed?

Nowadays many people use credit cards. Over the past few years, the process of getting a credit card has become much easier. Because of this, there is an increase in the number of credit card users. Many special offers are also available on many credit cards. In such a situation, people get attracted by these offers and buy many types of credit cards.

When we have more than one card, a question arises in our mind that we should close one of the cards. Apart from this, it is also important to know what harm we can suffer if we do not use the credit card.

Even if you do not use your credit card, you will still have to pay the annual fee charged on the card. At the same time, if there is zero annual fee on your card then you do not need to close the credit card. If there is an annual fee on your card, then the first thing you should do is downgrade your card. You should apply for a card with zero annual fee in place of your annual fee card.

If you do not use a credit card with an annual fee, you should close that card.

If you do not use your credit card, close it. Let us tell you that if you close the card, it will also affect your credit score. In such a situation, keep your card with you. After closing the credit card, it also affects your card history. If your card history is good then it will help you a lot while taking a loan.

If your credit card is closed, it will also affect your credit utilization. Understand it like this, if you have 3 cards whose total limit is Rs 1 lakh. If you close one of these cards, it will increase your credit utilization ratio. Let us tell you that if the credit utilization ratio is low then it is considered less risky. In such a situation, you can easily get a loan.