Credit Cards: If you are using a credit card and toying with the idea of getting it cancelled, it is recommended to be mindful of a number of key factors. First of all, it is rational to get the card cancelled when it has a huge annual fee. Else, when you already have one or more credit cards loaded with adequate credit limit – you can get the card cancelled.
What if the credit card does not hurt you since it has no annual fee and instead, offers a huge credit limit. It definitely means that the card is useful to users.
So, before you take a call to cancel your credit card, remember these points.
Card cancellation: 5 key points to consider
I. Whether the card has considerable annual fee: You should continue to use the card – even if you do not use it – so long as its annual fee is affordable and low. On the other hand, if its annual fee is high and the card is not used often, it is advisable to stop using the card.
II. Whether card offers a huge credit limit: Another reason to get the cancelled is whether it has a small credit limit. On the other hand, when the credit limit is high, you should refrain from cancelling it.
III. Key offers and discounts: Some credit cards offer good offers, cashbacks and discounts such as discounts on movie tickets and online shopping on using the card. This is another important factor that should affect your decision of choosing to cancel the card or not.
IV. Special privileges which otherwise are expensive: Some cards provide special offers such as access to golf and international airport lounges. These privileges may otherwise be too unaffordable for some. Therefore, it makes sense to continue with these cards.
V. Your tendency to use credit card: Lastly, what matters is whether using credit card comes naturally to you or not. If you are not a credit card user, it is futile to continue with this card just for the sake of it unless you plan to use in the forseeable future.
Disclaimer: Mint has a tie-up with fintechs for providing credit, you will need to share your information if you apply. These tie-ups do not influence our editorial content. This article only intends to educate and spread awareness about credit needs like loans, credit cards and credit score. Mint does not promote or encourage taking credit as it comes with a set of risks such as high interest rates, hidden charges, etc. We advise investors to discuss with certified experts before taking any credit.
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