Should I cancel the card or not?

Peggy0628

Hi,
I have 2 credit cards - tesco clubcard credit card with the limit of £400 and Santander credit card with the limit of £2000.
I only use the tesco card because it is gives me better benefits (clubcard points) but the santander one has got lower interest rates. I always pay off the full amount (the balance is usually between £150 and £200) every months so interest rates are not really that important. I am planning to move next year (renting). I'm thinking about canceling the santander card, I don't really need it. I have it 'just in case' but I'm worried that it's got a negative impact on my credit rating (because I don't use it and have too much available credit).
Should I cancel it or not?

alfred64

It's up to you, but why cancel? The fact that you are not using your available credit is hardly likely to have a negative effect on your credit rating given that your limit is only £2000 and that you have only two cards in total.

danouk

Limits on both cards are pretty low so their presence will not have a negative effect on your credit report unless there are other things (loans etc) that you have not mentioned.

YorkshireBoy

Does the Santander card have a dormancy fee?

nancy17

Peggy0628 wrote: »

Hi,
I have 2 credit cards - tesco clubcard credit card with the limit of £400 and Santander credit card with the limit of £2000.
I only use the tesco card because it is gives me better benefits (clubcard points) but the santander one has got lower interest rates. I always pay off the full amount (the balance is usually between £150 and £200) every months so interest rates are not really that important. I am planning to move next year (renting). I'm thinking about canceling the santander card, I don't really need it. I have it 'just in case' but I'm worried that it's got a negative impact on my credit rating (because I don't use it and have too much available credit).
Should I cancel it or not?

Good question! I have the same issue with a card I never use but have hung on to it for an emergency.

chattychappy

Keep both. Put the odd transaction through Santander to stop them closing it down as dormant or putting a dormancy charge on.

Dabooka

Keep both and do as your doing, use a little and pay in full. If you do move next year into rented, you might find it harder to get another card with a decent limit for a while.

I did this when I moved out from my ex some 6 years ago, cancelled 2 and kept 2 (they were silly limits on the cancelled ones. Halcyon days.....). So glad I kept a couple on though.