Here's why your first card should be LTF

179°
Deal Cadet
neo13

So, today I learnt that it’s better to have long credit history – basically you don’t close your old credit cards. So it’s better to apply your first cards as LTF so that you can’t close them later even though their rewards fade out.

Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
Top Comments
Deal Cadet Deal Cadet
Link Copied

Yeah. Without a doubt.
So many newcomers have been asking for suggestions on getting their first card, and its quite disparaging to see dimers suggesting them SimplyCLICK or similar cards. The only advantage seems to be they are easy to get approved.


Most users won’t be using these cards on a regular basis and would not follow the “best practices” to manage their cards.

The annual fees if remains unpaid, would soon pile up into a heap of debts, only to be bloated into a mountain of liabilities in a few years. This is alongside crumbling your credit score down to the dust.

Even, if you keep paying the fees faithfully and later when you had enough, you choose to close it, your credit score takes a slump. Because your credit-age goes down, as soon as you take the divorce.

In situation three, you became a pro user and milked the card to its max potential and got the fee waived every single year. This should make the perfect scenario when a paid card as your first card makes Complete sense.

In all other cases, if you need some peace of mind, go ONLY for an LTF card, as you get your skin in the trade.

Benevolent Benevolent
Link Copied

U can close cards CIBIL will recover in few months so that is not a big issue
If u do not use card then better close it even if its LTF, bcos it can affect new card approvals and limits too because limits of all these unused cards too counted in credit exposure
If u r with high ITR then nothing matters they keep issuing cards even with moderate CIBIL and already own a ton of cards

Generous Generous
Link Copied

Cbil use is of home loans , which is mostly single time

6 Comments  |  
6 Dimers
  • Sort By
Deal Cadet Deal Cadet
Link Copied

Yeah. Without a doubt.
So many newcomers have been asking for suggestions on getting their first card, and its quite disparaging to see dimers suggesting them SimplyCLICK or similar cards. The only advantage seems to be they are easy to get approved.


Most users won’t be using these cards on a regular basis and would not follow the “best practices” to manage their cards.

The annual fees if remains unpaid, would soon pile up into a heap of debts, only to be bloated into a mountain of liabilities in a few years. This is alongside crumbling your credit score down to the dust.

Even, if you keep paying the fees faithfully and later when you had enough, you choose to close it, your credit score takes a slump. Because your credit-age goes down, as soon as you take the divorce.

In situation three, you became a pro user and milked the card to its max potential and got the fee waived every single year. This should make the perfect scenario when a paid card as your first card makes Complete sense.

In all other cases, if you need some peace of mind, go ONLY for an LTF card, as you get your skin in the trade.

Benevolent Benevolent
Link Copied

U can close cards CIBIL will recover in few months so that is not a big issue
If u do not use card then better close it even if its LTF, bcos it can affect new card approvals and limits too because limits of all these unused cards too counted in credit exposure
If u r with high ITR then nothing matters they keep issuing cards even with moderate CIBIL and already own a ton of cards

View 1 more reply
Helpful Helpful
Link Copied

how do people keep their multiple cards active ? Like is there criteria to keep them alive even if they are ltf

Generous Generous
Link Copied

Cbil use is of home loans , which is mostly single time

Benevolent Benevolent
Link Copied

That’s why CIBIL is more important. As some times bank varies the interest rate depending the CIBIL.

replyuser
Click here to reply
Reply