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  • FIRST POST
    • peter312
    • By peter312 13th Mar 17, 3:54 PM
    • 9Posts
    • 0Thanks
    peter312
    Unused Credit Cards
    • #1
    • 13th Mar 17, 3:54 PM
    Unused Credit Cards 13th Mar 17 at 3:54 PM
    I have three credit card accounts, one I use and pay off every month and two that are unused.

    If I close the unused credit card accounts, will it improve my credit rating or does it make no difference?

    Many thanks
Page 1
    • zx81
    • By zx81 13th Mar 17, 4:14 PM
    • 13,216 Posts
    • 13,526 Thanks
    zx81
    • #2
    • 13th Mar 17, 4:14 PM
    • #2
    • 13th Mar 17, 4:14 PM
    It would be wise to keep and use at least a couple of them so you have a back up.
    • peter312
    • By peter312 13th Mar 17, 4:24 PM
    • 9 Posts
    • 0 Thanks
    peter312
    • #3
    • 13th Mar 17, 4:24 PM
    • #3
    • 13th Mar 17, 4:24 PM
    Thanks for the response. I will likely keep one of them. They both have high credit limits and my concern is that have these facilities available to me will make me less attractive to other financial institutions (e.g. the next time I want a bank loan).
    • zx81
    • By zx81 13th Mar 17, 5:15 PM
    • 13,216 Posts
    • 13,526 Thanks
    zx81
    • #4
    • 13th Mar 17, 5:15 PM
    • #4
    • 13th Mar 17, 5:15 PM
    What are the limits and what's your income?
    • peter312
    • By peter312 13th Mar 17, 6:20 PM
    • 9 Posts
    • 0 Thanks
    peter312
    • #5
    • 13th Mar 17, 6:20 PM
    • #5
    • 13th Mar 17, 6:20 PM
    credit limit on each card is c. 20% of my salary
    Last edited by peter312; 13-03-2017 at 9:20 PM. Reason: Salary details removed for privacy
    • nic_c
    • By nic_c 13th Mar 17, 8:55 PM
    • 911 Posts
    • 548 Thanks
    nic_c
    • #6
    • 13th Mar 17, 8:55 PM
    • #6
    • 13th Mar 17, 8:55 PM
    If total liability is less than annual salary then it shouldn't matter. Another consideration is how old the cards are. If you close a card that has been open the longest it will decrease credit score, but it is only a minor factor.

    You don't have an excessive number of cards nor total liability, and as you clear each month, no real detriment to closing them. You could also phone up the 2 that you are thinking of closing and saying you are going to close them and see if they will make an offer to keep them open, such as promo rate. Though maybe that isn't important to you if you are clearing balance of the one you use each time.
    • peter312
    • By peter312 13th Mar 17, 9:18 PM
    • 9 Posts
    • 0 Thanks
    peter312
    • #7
    • 13th Mar 17, 9:18 PM
    • #7
    • 13th Mar 17, 9:18 PM
    Thank you for your reply.
    • Ben8282
    • By Ben8282 13th Mar 17, 11:09 PM
    • 2,010 Posts
    • 885 Thanks
    Ben8282
    • #8
    • 13th Mar 17, 11:09 PM
    • #8
    • 13th Mar 17, 11:09 PM
    It would make very little difference. 3 credit cards is not a lot of cards. It might be a good idea to actually use the other 2 cards though instead of leaving them completely unused all the time.
    • nic_c
    • By nic_c 14th Mar 17, 8:14 AM
    • 911 Posts
    • 548 Thanks
    nic_c
    • #9
    • 14th Mar 17, 8:14 AM
    • #9
    • 14th Mar 17, 8:14 AM
    Well close them or use them seems to be the views. No point in unused credit cards staying unused (potential risk is you forget they exist and don't miss the replacements when they go missing)..

    What we really need to know from the OP is the ultimate goal - why they want to improve their rating by taking action with the cards. Credit building for the sake of it is pointless, its just a number you see. Wanting high just in case some day you ever may need to apply for credit but nothing definite at present is little use too as so many things can affect it more than a couple of unused cards
    • saywhatimean
    • By saywhatimean 27th Mar 17, 8:38 AM
    • 1 Posts
    • 0 Thanks
    saywhatimean
    high limit
    I have a cc with a high limit and don't use it
    Due to change in circumstances I probably won't get the same high limit
    If close account, wil it enhance the chance of getting another card?
    • zx81
    • By zx81 27th Mar 17, 9:09 AM
    • 13,216 Posts
    • 13,526 Thanks
    zx81
    If it's your only card, probably not.
    • AlexBarret
    • By AlexBarret 28th Mar 17, 8:07 PM
    • 10 Posts
    • 1 Thanks
    AlexBarret
    As for me, it would be better to close those two unused. It makes no difference and hasn`t anything with the improvements your credit rating.
    • john2054
    • By john2054 30th Mar 17, 11:27 AM
    • 163 Posts
    • 31 Thanks
    john2054
    keep the cards open is my advice, closing them reduces your overall credit line/limit, and so looks bad. Also closing them b4 they are six years old each, will negatively impact your rating.
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