What should I do with credit cards I don't use?

mr_fishbulb

Hi all,

I've got a few credit cards and I only want to use one of them and keep a spare for emergencies.

What's best to do with the other ones? Should I cancel them or just cut them up? What's best for my credit rating?

tango

cut up the ones you no longer are going to use, and close the account, although closed it will still show on your CRA report for six years, but it will show as settled

mr_fishbulb

Is it bad having lots of open ones on your credit file?

tango

it can be ,as you have so much money " available" to spend even if you weren't planning to. and this could influence creditors decision to lend to you

Bokken_2

Cut the bottom off the cards and keep them in a old wallet in the bedside cabinet or suitable place,as and when you are unfortunate enough to be burgled the thief will take these hopefully leaving other items untouched.
Same as above keep them in a suitable wallet when on holiday if held up by the taxi driver/another robber hand over the false wallet.To make it more life like stuff it with a few thousand Turkish Lira/picture etc.

mr_fishbulb

Thanks for the advice

Dave_the_Ginger_Cat

Bokken wrote:

Cut the bottom off the cards and keep them in a old wallet in the bedside cabinet or suitable place,as and when you are unfortunate enough to be burgled the thief will take these hopefully leaving other items untouched.
Same as above keep them in a suitable wallet when on holiday if held up by the taxi driver/another robber hand over the false wallet.To make it more life like stuff it with a few thousand Turkish Lira/picture etc.

In addition to this inventive idea, would recommend closing the accounts with the issuer for two reasons:
1) will reduce the amount of your available credit showing - possibly helping you in the future
2) ensure you do not lose track of it and become unknowingly susceptible to misuse of the account number
DTGC

ariba10

I closed one a month ago. Wrote to the card company and asked for writen cofirmation that it was closed. Had letter of confirmation within ten days.

The_Boss

For the record, as an experiment I paid for my credit score from Experian before a credit card account was settled and after it was settled. The score remained identical.

Hope this helps.

Clariman

The_Boss wrote:

For the record, as an experiment I paid for my credit score from Experian before a credit card account was settled and after it was settled. The score remained identical.

Hope this helps.

I think that's more to do with the limitations of the "credit score" chargeable service than anything else ... but I think we've had that conversation before

When the stoozing site asked Experian directly about closing credit cards they recommended it very strongly for 2 reasons (1) to reduce the amount of available credit you had and (2) to prevent identity fraud.

Clariman

The_Boss

It sure is a very costly experiment! I've had two more accounts settled now (credit card with £4500 limit and Orange mobile phone). I'm going to pay for my score on march 1st as my last part of the experiment, then I'm going to stop lining their pockets.