The CIBIL CIR captures details on all the credit facilities that one has availed like home loan,auto loan,credit cards etc.Details of unused credit cards,like that date if opening and credit limit will also reflect in the "Accounts" section of the CIR and have an impact on the credit score.
Credit Utilization and trade attributes such as the age of the credit account,type of credit,mix or balance of credit instruments etc. impact your credit score. However, unused credit cards will not drastically impact your credit score if you have been regular at payment on all your other credit accounts, along with these credit cards in the past.
In fact,if you have been regularly paying your EMIs on all the credit facilities availed by you and still have unused credit cards showing on you CIR, it will provide a positive indication of your financial security.You must keep in mind some basic facts on credit cards for managing them prudently and using them to your benefit for building a good credit score.Following points will help you:
* Credit cards are unsecured form of credit.if you have been using the credit card for over a year and have been regular on payments, you have actually built a good credit history on your CIR and ultimately a good credit score. This will provide the lender with additional confidence on you repayment capability as you have shown a disciplined track record on an unsecured form of credit.
* It is also advisable not to apply for too many credit cards.If you have made applications for credit cards, this will reflect in the "Enquiry" section of your CIR and will negatively impact your credit score.
* However,once you have availed a credit card, it is advisable to keep it for at least 12 months before closing it. The velocity of "opening" and "closing" a credit card account reflects on your CIR and credit score and impacts the lenders assessment of your credit management capacity. 12 months of history on the credit card, whether used or unused, is good enough for a lender to assess your financial standing and repayment capacity.
* Please remember though that it is important to be careful and keep a track of your credit cards regularly. Even though the credit cards have been lying unused, you must ensure that they are kept securely and all the terms and conditions on the credit card account are adhered to.You may not like to have surprises in the form of penalties or additional charges that have been levied on the credit card accounts.It is also advisable to access and review your credit score and CIR frequently, as it will give you a detail status of all your credit accounts, which will help you manage them better.
