NEED SUGGESTIONS REGARDING IDFC POWER+

[VAIBHAV07]

Hey, I recently got my first credit card from IDFC Bank without any Cibil score, which is yet to be delivered. And today an IDFC representative called me for a pre-approved IDFC Power+ card (500 Rs annual charges with 500 cashback). So my question is, should I go for a second card so that it will help to build my credit score and close it before renewal?

 

[RitamModak]

Congratulations on getting your first credit card! It's a great way to start building your credit history.

Regarding your question about getting a second card, it's not necessarily a bad idea, but it's important to consider a few things:

Pros of Getting a Second Card:

• Faster Credit Score Building: Having multiple credit cards can help you build your credit score faster. This is because it shows that you can manage multiple lines of credit responsibly.
  
  
• Increased Credit Limit: A second card can potentially increase your overall credit limit, which can improve your credit utilization ratio. This is a key factor in determining your credit score.
  
  

Negative Impacts:

• Reduced Credit Limit: Closing a card reduces your overall credit limit, which can increase your credit utilization ratio. A higher utilization ratio can negatively impact your credit score.
• Shorter Credit History: A longer credit history is generally better for your credit score. Closing a card can shorten your average credit history length, which could hurt your score.

Consider retaining a credit card with an annual fee if its benefits align with your financial goals and you anticipate accruing rewards exceeding the fee. Many issuers offer fee waivers for meeting specific spending thresholds or loyalty program milestones.Consider retaining a credit card with an annual fee if its benefits align with your financial goals and you anticipate accruing rewards exceeding the fee. Many issuers offer fee waivers for meeting specific spending thresholds or loyalty program milestones.

In short term it will make which credit score ...it can be deducted almost the same score as it is very short time period ...but yeah it can boost something