Old credit card hack #creditcard #finance

Do you have a credit card that you don’t actually need?

Maybe you got a better card or
you got a card with high annual fees and realised that the cost doesn’t justify the benefit!

Well then DON’T CANCEL THEM!!

Downgrade them to reduce your expenses!!!

But why should you downgrade it instead of canceling?

Closing a credit card account can reduce the age of your credit history and cause your credit limit to reduce, leading to an increase in your credit utilization ratio on other cards.

These are both factors that impact your credit score — your length of credit history accounts for 15% of your score, while your credit utilization accounts for 30%.

But downgrading a card doesn’t cause any of these disturbances!!!

So, if you have devalued cards or not-so-frequently used cards, downgrade them if you don’t want to lose the credit history you have built!