Cancelling Credit cards?

smart_money_3

Hi there

Just wanted to know whether I should cancel credit cards that I'm not using - what's wiser and what are the benefits? To continue having lots of credits cards or get them cancelled and apply again to get a promotional offer?

Many Thanks in advance

wizk1

http://www.moneysavingexpert.com/cards/credit-card-special-offers#score

Should answer your questions.

INT1

If you have more than 2 CC's I would cancel any you don't use or benfit from. Before you cancel though , ask if they have any offers for you like promotional BT rates!

NickX

It really depends on which cards you are thinking of cancelling.

Personally I have not found holding large numbers of cards prohibitive. I have held well into double figures before and still been accepted for further cards.

Certain cards are worth keeping IMO. Egg Money and MBNA run cards are worth keeping for their Super Balance Transfer (SBT) facilities. These are "stoozers friends".

Abbey\Santander Zero or Nationwide are worth keeping because they offer excellent rates for foreign currency transactions.

Other cards are renown for offering excellent repeat deals. These include Barclaycard, RBS run cards such as Ulster Bank, and again MBNA run cards.

However if you wish to re-apply for a particular card to benefit from a promotion as a new customer once again, then you are better to close the existing card sooner rather than later.

Moggles_2

I agree. You have to treat each credit card on its own merits.

You don't mention how many cards you have at the mo, but with each successful credit card application, your available credit will increase in relation to your income and there will come a point when you must consider closing one or two.

By cancelling a card you can re-apply to that provider as a 'new' customer and take advantage of introductory deals, as I think you realise.

Another good reason for phoning customer services to cancel an unused card is that occasionally you're offered an incentive to stay :cool:

Moggles_2

P.S. Some lenders will not consider applications from former card holders for various periods following closure. Others accept applicants more or less straight away.

In all cases, it's advisable to check credit files to make certain the account was actually closed down and marked "settled" soon after you cancelled, before you re-apply