cancel credit cards?

jayremoh

over the years i have accumalated an few credit cards

Capital One, 9.9%, £10k limit, £0 Balance
Halifax, 17.9%, £9k limit, £0 Balance
Natwest, 16.9% £5k limit, £0 Balance
Virgin 0%, £9k limit, £5k Balance

my question is should i cancel old cards or just leave them dormant for a rainy day?

Robert_Sterling_3

Refer to thread "How to cancel a Credit Card."

lisyloo

I general I would close unused ones.
This is because
1) each one represents a fraud/theft risk especially if it's unused and you aren't checking the balance regularly
2) They increase your available credit and therefore can result in declined applications for other credit.
3) Kepping it can stop you getting "new" customer deals.

However in these gloomy times when credit is not easily available and limits are low, you have to balance that against wanting a decent credit limit in future.

I'd probably keep capital one (because they have a free Equifax sevice) and close down the other two unused ones, but as always it's something of a trade-off.