Which of the following two cases will reduce my credit score?

[Thor]

I am writing here two cases:

Case 1 - I have a credit card but I have not used it for a long time and thus, the issuer has deactivated my credit card permanently due to inactivity.

Case 2 - I have a credit card and I use it regularly but now, I do not need that credit card anymore. So, I place a request to deactivate my credit card permanently and the issuer deactivates my card permanently.

Which of the above two cases will reduce my credit score?
Only Case 1
Only Case 2
Both Cases 1 & 2

And further, please tell me if I close my Flipkart Pay Later service and LazyPay service, will it affect my credit score?

 

[schahal75]

In both cases, your credit score may be impacted, but for different reasons.

In Case 1, where your credit card is deactivated due to inactivity, it might have a minor negative impact on your credit score. The closure of an account can affect your credit utilization ratio and average account age.

In Case 2, voluntarily closing a credit card can also impact your credit score. It may affect your credit utilization ratio and potentially reduce your total available credit, influencing your creditworthiness.

Regarding Flipkart Pay Later service, if it's a credit account, closing it could have similar effects on your credit score as mentioned in the cases above. It's advisable to consider the potential impacts before closing any credit account.

 

[ollosenliak]

Both cases can potentially impact your credit score. In Case 1, deactivation due to inactivity affects your credit utilization ratio. In Case 2, voluntarily closing a credit card can influence your credit utilization ratio and average account age, both affecting your credit score.

 

[udit.adhikari]

hello thor.
first you have to understand this that how this credit score system works.
closing your any kind of pay later account wont harm your credit score directly. but when you close any pay later account or any credit lending service you are willing to stop taking credits. so this affects credit cards business. thas why this system is designed in this way so customer should fear abefore closing their account.
so do not worry if you are closing your credit services.
but i will suggest that stay disciplined and use the credit services because it will help you in numerous way. and it will also teach you how to rotate the money system