Using a credit card in today’s time is very normal. Plastic money has made life simple for everyone in the 21^st century. You don’t need to carry cash all the time when you leave from home. You also don’t need to worry about carrying coins and exact change while purchasing anything. All you need to do is swipe, swipe and swipe!

A credit card has a lot of benefits. It helps you in times of short term payments, paying monthly bills, to splurge on shopping and also in times of emergencies. Hence many call it a blessing in disguise. But using it smartly will only help you maintain a good credit history. Today, having a good credit score is very important. Every lender in the market will look up to your credit score in order to derive your credit worthiness. On that basis you may/may not get a loan or another credit card. Hence it is very important to keep your credit score in check.

Importance of your old credit card:

A credit card, if not used for a long period of time might be deemed as inactive by the bank. In that case they have the power to close the account due to non-usage. You might be using more than 2 credit cards and hence the old card being might not affect you if the latest or new cards have a higher limit.

You need to remember that a credit history takes at least a minimum of 6 months to generate. Hence when your old card is discontinued, with that your credit history for that period is wiped out too. That will impact your credit score today and it will fall.

Hence it is very important to utilize your old credit cards as your credit history was built with those cards. To know more about applying for a credit card