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Credit — Advanced
Keep your oldest credit card active — even one small transaction per quarter keeps it alive.
Concept
Keep your oldest credit card active — even one small transaction per quarter keeps it alive.
Credit age (average age of all credit accounts) makes up ~15% of your CIBIL score. Longer history = more reliable borrower. When you close an old card, your average credit age drops and total available credit falls (increasing utilization ratio). Both hurt your score.
हिंदी मेंCredit age (सभी credit accounts की average age) CIBIL score में ~15% है। Longer history = ज़्यादा reliable borrower। Purana card band करें तो average credit age गिरती है और total available credit कम (utilization ratio बढ़ता है) — दोनों score hurt करते हैं।
Example
See it in action
Priya has 3 cards: Card A (10 years old, ₹5L limit), Card B (3 years, ₹3L limit), Card C (1 year, ₹2L limit). Average age = 4.7 years. She closes Card A → average age drops to 2 years, total limit drops from ₹10L to ₹5L. Her score falls 40 points overnight.
हिंदी मेंPriya के 3 cards: Card A (10 साल पुराना, ₹5L limit), Card B (3 साल, ₹3L), Card C (1 साल, ₹2L)। Average age = 4.7 years। Card A band किया → average age 2 years, total limit ₹10L से ₹5L। Score रातोंरात 40 points गिर गया।
Key takeaway
Remember this
Never close your oldest card. If it has an annual fee, downgrade to a no-fee variant instead of cancelling.
Closing an old credit card you don't use doesn't "clean up" your finances — it actually shortens your credit history and can lower your score.
हिंदी मेंसबसे पुराना card कभी band न करें। Annual fee है तो cancelling की बजाय no-fee variant में downgrade करें।
Learn Credit by doing
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