Do you always
think to close a credit card, but always hesitated because it can damage a
credit score? Credit scoring or credit score is a system used by banks to
determine whether consumers deserve credit card, mortgage, personal loan, or
other forms of loans.
Simply put the score shows your financial history, one of which was built with a credit card ownership. Andamungkin've heard that open the closed credit card can damage credit scoring. However, this assumption is not always true.
Simply put the score shows your financial history, one of which was built with a credit card ownership. Andamungkin've heard that open the closed credit card can damage credit scoring. However, this assumption is not always true.
Here are five
situations where it is time you close a credit card as quoted CekAja.com on
Saturday (22/10/2016):
Spending Uncontrolled
Credit cards make a lot of people think they have 'too much money'. Like when you're wanting an item, you'll buy it by swiping a credit card even though he did not have the money. Especially when the goods are limited edition. Once bought you feel satisfied, but not when the bill comes.
Precisely if not
immediately shut down, you are feared to be more extravagant and accumulate
debt. Though
not affect the credit score, it may hinder you get a limit increase if in the
future apply for a new credit card. (See
also: When is the Right Time Use Debit Cards and Credit Cards?)
Always pay the minimum amount
Total interest of 2.95 percent per month may seem mild. But if you have a habit of paying bills in a minimum amount, the interest charged to you will be calculated daily.
In the credit card payment system, there is an interest free period. Namely, you are exempt from paying off interest if the bill before the due date each month. If you make a payment through of maturity, the interest will be calculated based on the difference between the accounting and payment.
This means, the sooner and the greater the amount you pay, the more inexpensive cost of interest charged. But if you instead pay the minimum amount, the interest charged will be even greater. Instead of a profit, you actually harmed
Always pay the minimum amount
Total interest of 2.95 percent per month may seem mild. But if you have a habit of paying bills in a minimum amount, the interest charged to you will be calculated daily.
In the credit card payment system, there is an interest free period. Namely, you are exempt from paying off interest if the bill before the due date each month. If you make a payment through of maturity, the interest will be calculated based on the difference between the accounting and payment.
This means, the sooner and the greater the amount you pay, the more inexpensive cost of interest charged. But if you instead pay the minimum amount, the interest charged will be even greater. Instead of a profit, you actually harmed
Annual fee is
expensive
Annual fee is expensive
Usually the credit card issuing bank will provide free annual fee for one or two years to attract customers. But after that, new customers by realizing that the annual dues paid quite expensive. You will be harmed if it included people who rarely use the credit card features.
But before deciding to close a credit card, you can actually negotiate with the bank to eliminate dues. Usually the bank will grant if you are an active user and have a good credit collectibility.
Annual fee is expensive
Usually the credit card issuing bank will provide free annual fee for one or two years to attract customers. But after that, new customers by realizing that the annual dues paid quite expensive. You will be harmed if it included people who rarely use the credit card features.
But before deciding to close a credit card, you can actually negotiate with the bank to eliminate dues. Usually the bank will grant if you are an active user and have a good credit collectibility.
abused
If your credit card is lost or stolen, then you should immediately call Customer Service to block. But if you feel your personal data has been stolen, then you have to do is close the credit card and ask for a new card issued. (See also: Credit Card Fraud Alert, How Can You Refuse Transactions)
There have been many cases in which the offenders stole the victim's credit card data and charge it in large quantities. There is also a stole data to make duplicate credit cards used by the perpetrators. Not only that, for example, you impose autodebet to pay monthly gym dues.
But once you get out, the gym still cast a bill. You should immediately close the credit card to avoid bigger losses.
If your credit card is lost or stolen, then you should immediately call Customer Service to block. But if you feel your personal data has been stolen, then you have to do is close the credit card and ask for a new card issued. (See also: Credit Card Fraud Alert, How Can You Refuse Transactions)
There have been many cases in which the offenders stole the victim's credit card data and charge it in large quantities. There is also a stole data to make duplicate credit cards used by the perpetrators. Not only that, for example, you impose autodebet to pay monthly gym dues.
But once you get out, the gym still cast a bill. You should immediately close the credit card to avoid bigger losses.
source: liputan6
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