Keep or cancel unused / zero balance credit cards??

mummyknowsbest

We have 3 cards, Tesco, Virgin and Barclaycard.
Virgin and Barclaycard have zero balance as we used both for transfers and paid them off during the 0%. Should I cancel these cards as we no longer need them, or just leave them with a zero balance and not use?
We like Tesco as we get points and pay off the balance monthly so interest rate not that important, so I'm going to keep that one!!
So, keep or cancel the unused cards??

siandtink

If I were you, I would cancel them if you are not using them because if you in the future want to apply for another credit card, the credit available to you on the cards will be taken into consideration and it will lower the amount available to you.

I am currently unable to get any newcredit cards, even though my credit score is excellent, because, as I found out after being turned down for one and subsequently getting a credit report from Equifax, quite a few credit card accounts, with no outstanding balance, are still open.

I have now written to the credit card companies but it will take at least three months before there is an entry made on my credit score file - that is if the credit card companies inform Equifax and Experian. I noticed that there are months when the credit card companies did not bother sending anything. So much for the whole system and its reliability to inform credit companies of applicants' creditworthiness!!!!

never-in-doubt

siandtink wrote: »

If I were you, I would cancel them if you are not using them because if you in the future want to apply for another credit card, the credit available to you on the cards will be taken into consideration and it will lower the amount available to you.

I am currently unable to get any newcredit cards, even though my credit score is excellent, because, as I found out after being turned down for one and subsequently getting a credit report from Equifax, quite a few credit card accounts, with no outstanding balance, are still open.

I have now written to the credit card companies but it will take at least three months before there is an entry made on my credit score file - that is if the credit card companies inform Equifax and Experian. I noticed that there are months when the credit card companies did not bother sending anything. So much for the whole system and its reliability to inform credit companies of applicants' creditworthiness!!!!

I've replied to you on your other thread about this - if you query the data's accuracy direct with the CRA it will be updated to closed quicker than the lender direct.

At the end of the day, the CRA's have to ensure the data is accurate - it is not (if the account is closed and showing as live) so they have a duty to correct the data and will want it sorted quicker because you can sue them for libel as long as the incorrect data remains publicly available and if you prove you have been affected detrinentally - the norm is a £5k payout but costs a lot to sue a CRA (I should know lol - on my 3rd now!)....

Check your other thread here: http://forums.moneysavingexpert.com/showthread.html?t=1972389

Or learn CRA's here: Credit Reference Agencies