What to do with an unused cc???

Rebob

Hi

Last year I took out a virgin credit card with 0% bt to get out of debt. :rolleyes: It has been paid off ages since an has remained unused.

Am I better making 1 purchase so have used it for a new purchase?

Just keep it "in case"?

Cancel it?

I am thinking of getting a cash back card for use on groceries and petrol is this a good idea or are there any hidden charges to beware???

Thanks in advance:beer:

lisyloo

Personally I would cancel it for the following reasons

1) Could be used for fraud and even if you don't end up out of pocket it could be lots of hassle.
2) Can damage your credit rating (depends on circumstances and in some cases can improve it but in general having lots of unused credit doesn't make sense).
3) They might sneak in a "low usage" type charge so you might get charged this unless you are going to read all the small print of every change in terms and conditions they send.
4) Could get stolen and if it's one you don't use much and have in a drawer somewhere it's possible you wouldn't notice it was missing. A lot of debt could be run up before you notice and the lender could get stroppy and claim you were negligent in not noticing. Again even if you don't end up out of pocket, it's still lots of hassle.

Getting a cashback card is an excellent idea. There are no specific hidden charges but a card that's good for cashback will probably not be the best one for borrowing or balance transfers.
The only possible "hidden" charge is that you should pay income tax on any cashback that related to business expenses because it's a "benefit in kind".
You would have to do this via your tax return.

Rebob

I did not really know what to do as we are thinking of moving and did not want to spoil my credit rating in any way.

thanks