Credit cards can be useful in increasing your CRISIL credit score. As credit card gives you a loan, each transaction through credit card can change your credit score. If you pay your dues on time and do not use 30-35% of your credit, your score will increase. Thus, if you are using a credit card for a long time, it might be involved in your credit score.

Do not cancel an old credit card

Yes, if you are using quite an old credit card and now want to cancel it, there is a high chance that all credit score associated with this card will hamper. As there will be no transaction on this card, it will affect your credit utilization rate and credit history. You will clear this history, and a new credit card will start fresh. Thus, you will again have to build a credit history. This will negatively affect your credit score.

So, if you want a new credit card, keep your old credit card and use it rarely to maintain its credit history for your score.

How to cancel a credit card?

If you have a credit card with bad credit utilization history, bad credit history and you have failed to repay regularly; then it makes sense to cancel such credit card. This card will be decreasing your credit score (although the credit card is not the only factor affecting your score) so there is no benefit in keeping such card. If you have Bajaj Finserv RBL Bank credit card and wish to cancel it and want to know how to cancel a credit card, you can easily cancel it online or by calling to customer care.

You may cancel this card to start a new credit history with a new card. However, cancel the credit card only when you have a high credit score so that the cancellation would not impact your credit rating.