Should I cancel my credit card?

SammyS1987

I have a credit card that I spent up to £1000 on over the course of last year and paid it off in full in march interest free. Since then I have just left it not spending on it. I was under the impression that it helped your credit rating if you had a credit card even if your not using it, Is this correct or is it best to cancel it? Also in the future if I need credit I will look for another 0% deal. Will this effect future card applications?

Thanks,

Sam

bargainhunter90

I thinks its much better to spend on the card with your usual shopping only like down the supermarket and petrol, then pay off in full with your statement.

Its best to close non used credit cards but if its your only one try and use it a little to build up a credit report but dont spend the full lot.

CannyJock

Having one card won't affect any future applications for other cards, unless it's got an unusually high credit limit and you have a major change of circumstance.

You're better to use the card and clear the balance in full. You'll get up to 56 days interest free credit for one thing and it'll help build up a behaviour score with that card provider. Also, some cards are known to have repeat offers for existing customers but can't say whether yours is worth holding onto for that without knowing what it is

List of current 0% purchase cards here on the stoozing site. If you don't need credit right now then perversely it's the best time to apply Why not get a new 0% purchase card, do what you did before and pay the minimum while putting the money you would have spent in a high interest savings account and earn a bit of interest on it? You can get up to 6% AER with Abbey and A&L at the moment.

SammyS1987

It's the halifax one mastercard that was featured on here. The one with 15month interest free. Not to keen on spending on it as I don't want to get into trouble, just need to know is it best to leave it sitting there doing nothing or just to cancel it all together? Thanks.

Moggles_2

SammyS1987 wrote: »

It's the Halifax One mastercard that was featured on here. The one with 15 months interest free. Not too keen on spending on it, as I don't want to get into trouble. Just need to know is it best to leave it sitting there doing nothing or just to cancel it altogether?

There's risk attached to everything but, in general, credit cards are the safest way to purchase goods/services. (If you carry cash, it could be nicked. If you use cheques, they could get altered - assuming you can find a retailer that still accepts them)

With today's online facilities, it's never been easier to keep track of cc spending than it is now and, used sensibly, they have many advantages, IMO. If you only ever spend what you can afford to pay back on time each month, you'll never pay interest.

If it's the only cc you have, I certainly wouldn't cancel it.

cos_2

Hi Sam,

It seems you have this card totally under control and I'd agree with others that it's fine to have it sitting there. Your history is already logged with the CRAs so cancelling or keeping will likely make little difference to a future application. Slap it back in your wallet and relax

SammyS1987

Thanks for all your advice so far, love this forum, I thought I'd have a read through the credit card section of the main site and ended up looking at the reward cards. I'm actually planning on going to Canada next year so had a good read of the flight award cards.
Quite suprised to see that if I get the bmi card I can get 20,000 flight points as long as I spend £250 on it. That means that when I go to Canada it will cost me the 20,000points+£100+Taxes for my return flight. Bargain!
I'm going to apply in the morning for it. I'm assuming that it's best then to cancel the Halifax card I'm not using if I'm going to use this for the next month or so to get the points?

Moggles_2

SammyS1987 wrote: »

I'm assuming that it's best then to cancel the Halifax card I'm not using, if I'm going to use this for the next month or so to get the points?

Personally, I'd still hang on to your Halifax card.

Everyone should have at least one back-up card, IMO, particularly if you're planning a trip overseas.

No credit card is 100% reliable and sadly there's the ever-present possibility of fraud, which means your card could be blocked temporarily through no fault of your own or the provider. What's more, if your lender varies your Ts & Cs or cuts your limit without warning, you have an alternative to hand. From a credit rating point of view, it makes sense too

SammyS1987

Moggles wrote: »

From a credit rating point of view, it makes sense too

So even though I won't be using it it will have a positive effect on my credit rating?

Moggles_2

Absolutely. You'll be building a nice, unbroken string of zeros on credit files