Should You Cancel an Unused Credit Card? 4 Important Things to Know

by Jobuza Team | May 9, 2025 | BLOG, Trending News

Do You Own an Unused Credit Card? Here’s What to Consider Before Closing It

Credit Card- Do you have a credit card that you rarely use? If so, you might be wondering whether it’s better to close the account or keep it open until the right time. Before making a decision, it’s important to understand how closing a credit card can affect your financial profile.

The choice to discontinue a credit card isn’t as straightforward as it may seem. It depends on several factors that work together to impact your credit score and financial flexibility. For instance, closing a card reduces your overall credit limit, which can influence your credit utilisation ratio. This ratio plays a key role in determining your creditworthiness.

Another important point to keep in mind is the potential value of a credit card during unexpected emergencies. Even if you aren’t actively using it, having an available credit line can provide a useful safety net—as long as the annual fees are reasonable.

Additionally, many credit cards come with valuable perks such as discounts, airport lounge access, special events, and exclusive memberships. In such cases, it may be more beneficial to keep the card open to continue enjoying these advantages.

Four Key Factors to Consider Before Closing Your Credit Card

1. Credit Score Impact
One of the most significant effects of closing a credit card is on your credit score, particularly through your credit utilisation ratio (CUR). This ratio measures how much credit you’re using compared to your total credit limit. A lower CUR is generally better for your credit score, ideally staying under 30 to 40 percent.

For example, if you have a total credit limit of ₹10 lakh across two cards of ₹5 lakh each, and you’ve used ₹4 lakh, your CUR stands at 40 percent. If you close one of these cards, your total credit limit drops to ₹5 lakh. This pushes your CUR up to 80 percent, which could negatively impact your credit score.

2. Emergency Preparedness
Even if you don’t use the card regularly, it can serve as a valuable backup in emergencies. Unexpected expenses or financial shortfalls can happen at any time, and having an available credit line can be a crucial resource. Keeping the card active ensures you have this option when needed.

3. Annual Fees
Another factor to weigh is the cost of keeping the card open. If your unused credit card has a low or zero annual fee, it may be worthwhile to keep it. However, if the annual fee is high and the card doesn’t provide sufficient value in return, closing it could be the better choice.

4. Rewards and Special Benefits
Many credit cards offer benefits beyond spending power. These might include reward points, cashback, discounts, access to airport lounges, and invitations to exclusive events. If your card provides such perks, keeping it open may help you maximize these rewards—even if you use the card sparingly.

The Bottom Line

Closing a credit card isn’t just about reducing clutter in your wallet. It’s a decision that can affect your credit score, financial flexibility, and access to valuable perks. Before you decide, consider these four key factors to ensure you’re making the choice that best supports your financial goals.

Income Tax Return Exemptions: Know Who Can Skip Filing ITR This Year

by Jobuza Team | May 3, 2025 | BLOG, Trending News

Who Is Exempt from Filing Income Tax Returns? Know the Rules and Eligibility

As the new financial year begins, the Income Tax Return (ITR) filing season is in full swing. While most salaried employees, freelancers, and business owners are busy preparing their tax documents, not everyone is required to file an ITR. The Income Tax Department provides exemptions to certain categories of taxpayers, reducing the burden of paperwork and compliance under specific conditions.

Who Needs to File Income Tax Returns?

According to the Income Tax Act, anyone whose annual income exceeds the basic exemption limit must file an ITR. For the current financial year, this exemption limit varies based on the taxpayer’s age and the type of income they earn. Whether you are salaried or self-employed, if your income crosses the prescribed threshold, filing an ITR becomes mandatory.

However, the law also allows specific exemptions, meaning some individuals can skip filing returns under certain conditions.

Who Is Exempt from Filing ITR?

A major exemption under the Income Tax Act applies to senior citizens aged 75 years or older. If their income comes only from two sources—pension and interest earned from savings or fixed deposits in the same bank—they are not required to file an ITR.

This exemption aims to simplify tax compliance for elderly individuals who rely solely on pension payments and bank interest. However, it’s important to note that the pension and interest must be credited to the same bank account for the exemption to apply.

To claim this benefit, eligible senior citizens must submit Form 12BBA to their bank. This form serves as an income declaration and enables the bank to deduct the appropriate tax at source (TDS) on both pension and interest income.

Once the form is submitted and the bank deducts the correct TDS, these senior citizens are no longer required to file an ITR—provided they have no other sources of income.

Why Filing ITR Is Still Recommended

Even if you fall below the taxable income limit, filing an ITR has several advantages. Many taxpayers choose to file returns to claim refunds on excess TDS, establish a financial record, or support applications for visas, loans, and government benefits.

For senior citizens eligible for exemption, submitting Form 12BBA and ensuring the bank deducts the correct tax offers peace of mind. However, they should still evaluate whether filing an ITR could help with other financial or legal requirements.

Final Word

If you or your family members fall under this exemption category, carefully check your eligibility and complete the necessary steps on time. The Income Tax Department’s provision for senior citizens is a thoughtful step toward easing tax compliance for those with limited and predictable income sources.

Difference Between Ayushman Card and ABHA Health ID Card Explained

by Jobuza Team | May 2, 2025 | BLOG, Trending News

Difference Between Ayushman Card and ABHA Health ID Card Explained

In India’s ongoing mission to improve healthcare access, two government programs have become essential: the Ayushman Card and the ABHA Health ID Card. While they share the goal of improving healthcare delivery, they serve very different purposes.

The Ayushman Card acts as a financial shield against hospital expenses, while the ABHA Card digitizes and organizes your health records. Understanding these tools can help citizens get faster treatment, avoid unnecessary costs, and better manage their healthcare needs.

Why These Cards Matter for Citizens

Healthcare expenses can strain family savings, especially for low-income households.

• The Ayushman Card provides insurance coverage of up to ₹5 lakh per year for hospitalization, helping families avoid falling into debt.

• The ABHA Health ID securely stores your health records, such as prescriptions, lab reports, and vaccination details, making them accessible to doctors across India.

Together, they address two major challenges in healthcare: affordability and access to medical data.

Ayushman Card: Your Financial Safety Net

Launched in 2018 under the Pradhan Mantri Jan Arogya Yojana (PM-JAY), the Ayushman Card is aimed at economically vulnerable families.

Key details:

• What it covers: Hospitalization for over 1,900 procedures, including surgeries, cancer treatments, and emergencies.

• Benefits: Cashless treatment at empanelled hospitals, coverage for pre- and post-hospitalization costs.

• Eligibility: Families earning less than ₹5 lakh per year, including manual laborers, homeless individuals, and certain caste groups.

• Example: A farmer’s family can avoid debt when a ₹3 lakh heart surgery is covered under the scheme.

ABHA Health ID: Your Digital Health Record

Launched in 2021, the Ayushman Bharat Health Account (ABHA) gives every citizen a unique 14-digit digital ID for health records.

What it offers:

• Stores medical details like prescriptions, lab reports, and vaccination records.

• Allows doctors to access your medical history instantly, with your consent.

• Connects with telemedicine services like eSanjeevani.

• Eligibility: Available to all Indian citizens, regardless of income.

• How to get it: Register through the ABHA app or website using your Aadhaar number.

• Example: A Delhi resident can easily share diabetes records with a Mumbai specialist, improving continuity of care.

Key Differences Between Ayushman Card and ABHA Health ID Card

Can You Have Both Cards?

Yes. For example, a street vendor can use the Ayushman Card for free cancer treatment and use the ABHA ID to track his wife’s pregnancy records. The two systems work together: one helps pay medical bills, the other organizes health data.

Recent Updates

• Ayushman Card Expansion: In 2024, the government began discussions on extending coverage to middle-class families, though official changes are still pending.

• ABHA Upgrades: New features now allow users to link health insurance policies and book lab tests through the ABHA app.

Common Questions Answered

Is ABHA mandatory?
No, but it simplifies healthcare management and reduces paperwork.

Can I get an Ayushman Card online?
You must first check eligibility on pmjay.gov.in and then visit a nearby Common Service Centre (CSC) to apply.

How to Apply

For Ayushman Card:

1. Visit pmjay.gov.in and check eligibility under “Am I Eligible?”

2. Submit income and caste certificates at your nearest CSC.

For ABHA Health ID:

1. Download the ABHA app or visit the official website.

2. Enter your Aadhaar number to generate your 14-digit ABHA ID.

Conclusion

The Ayushman Card and ABHA Health ID are transforming healthcare in India. Since 2018, the Ayushman Card has covered over 6 crore hospitalizations, while ABHA IDs have reached more than 50 crore registrations as of 2024. For individuals, this means fewer loans during medical emergencies and better access to health information.

Think of the Ayushman Card as your health insurance card and the ABHA ID as your personal health diary. Whether you are a daily wage worker or a corporate professional, these tools empower you to take control of your health, minus the paperwork hassle.