Reduce 4 credit cards to 1?

bertietheblue

Hi

I just wondered: I've transferred the balance owed on 3 credit cards (HSBC, Santander, Virgin) (not a whole lot: c£2,000 total) to one credit card (Lloyds TSB), so is there any reason for keeping 1 or more of the zero balance credit cards now or is it advisable to close these accounts?

Thanks
Bertie

pickleiamin

Article by MSE here on old cards

http://www.moneysavingexpert.com/cards/cancel-unused-cards

don9999

It 'depends'.......

Usually, it can be best to cancel unused credit card accounts, so that the amount of 'available credit' that is shown on your credit reference is reduced. This is typically beneficial when applying for new cards, loans etc.... (when you apply they will check how much credit you already have available).

However, keeping one of more old accounts 'can' sometimes be useful.

The main reason is that sometimes a credit card company will make various offers available, even to 'existing' card holders. And you have the obvious advantage that you already have a credit limit with them - so no need to re-apply, so they will not need to check your credit reference again (that 'may' not be as good at some later date.)

For example, I had two older cards that I had previoulsy used for balance transfers at 0%. They ended some time ago, and were no longer used. However, I recently had a need to perform additional balance transfers from another card. I contacted these companies and both Santander and Virgin offered me 0% for 12 months. I have credit limits of £5k and £11k on these, so plenty of flexibility with these.

And they were available for immediate use. I 'could' apply for a new card, but then I would have to go through the application/approval process, be subject to a credit reference check, and then wait 1-2 weeks for the account to be set up and cards received.

Personally, I tend to keep just one old card open with a reasonable (but not too large) credit limit on it. It gives me flexibility at short notice.

Cheers,
Don

opinions4u

One for balance transfers - if you have any.

One for day to day spending. Clear balance in full each month. Ideally with a reward scheme.

One as a back up for spending - just in case your normal one fails for any reason. Ideally a Visa if the other is a MasterCard. Use it a couple of times a year to keep it live.

bertietheblue

Thanks for the links and advice. I'll keep the Virgin credit card then and ditch the others.