Should i cancel one/some of my cards

jackb_2

I have a total of four credit cards to of which I no longer use. I was considering cancelling the unused ones, but after talking to some friends, who think they know something about money. They said that it is a good thing to keep them open, for credit reports a such, and the only reason I should close them is if i am worried about idenity theft. I was thinking of closing them not for this reason but thought that in the future I could reopen accounts and take advantage of the introductry offers again when required.

I was wondering if any of you guys had an opion on this or have ever cancelled cards for this reason, and des it work?

Clariman

In general it is better to close them rather than keep them open. One of the things a future lender will look at is the total amount of available credit that you have. They will see those 4 cards and will see that you could go out tomorrow and get yourself in debt up to that level. Therefore, you they may view you as a higher risk. OTOH some lenders also look at the percentage of used credit and if you have maxed out your credit limits that could be an indicator of financial trouble. While writing an article on credit scoring for another website I spoke to both Experian and an industry insider, both of whom said it was better to close existing cards because the total amount of available credit was more of an issue.

In your circumstances, you could hedge your bets by closing 3 of them and keeping one as a backup and so that it would not appear as maxed out.

The other 2 points in favour of closing, you have already made. Reduced risk of identity theft and the ability to get treated as a new customer with introductory rates.

If it were me, I'd close all unused cards unless I needed one for emergencies.

Clariman

maforduk

You could also use them for Stoozing...but you need to be on top of your money!

Clariman

maforduk wrote:

You could also use them for Stoozing...but you need to be on top of your money!

You could only use them for stoozing if they were still in their introductory 0% BT period, which they are unlikely to be I would have thought. If one of them is an SBT capable card then that might help in stoozing, but the OP would still need other new cards.

Clariman

maforduk

Sorry, didn't think that they would have expired there 0% intro. period!
Good point Clariman.

jackb_2

they have indeed passed through their 0% introductory period, so don't think i'll be able to do any stoozing. Thanks for the advice. clariman seems to be quite informed about these isuses so I'll take their advice and close any unused cards. Thanks.

sicker

The info on 'settled' cards will be on your credit report for years to come anyway so it would better to close unwanted cards.

John