Old Credit Cards: Should I cancel them Discussion Area

nourishment

Deleted_User wrote: »

So I've been a credit card balance transfer tart for quite a long time, and I've been quite lax about cancelling cards, and now I don't even have the details of many previously used cards. What's the quickest way to find out what open accounts I have and cancel them?

You've probably got eh details you need but if not, https://www.noddle.co.uk give you free access to your credit file (but read my post before closing them 'for the sake of it').

rititayal

I have got 2 credit cards. One with Tesco and other with Asda
I have never defaulted on any of these cards.
Tesco
- Opened in Oct 2014
- Use very infrequently (once or twice a month) since Jul 2016
Asda
- Opened in Jul 2016
- Using around 10% of credit limit per month

I am thinking of cancelling my Tesco credit card in July. Is this a wise decision considering I am planning to apply for a mortgage in the same period?

[Deleted User]

No. That would be a very poor decision.

rititayal

HI, Thanks.
Can you please elaborate the line of thinking as to why it will be bad decision to cancel Tesco credit card in my situation?

[Deleted User]

You only have a couple of cards. So no issue with being over burdened with credit.

It would leave you with no back up.

You should avoid making any significant credit changes before a mortgage application unless essential - ie paying off debts to improve affordability.

Lenders may wonder why one of your cards has been closed - whether that was your decision or the lender's.

StopIt

It's also not an old card by any means.


It wont help you get a mortgage and frankly, you should always have 2 CC's in case of failure of one for any reason.

AaronF8

Hi

I have recently paid off a Post Office Credit Card after taking advantage of the 0% interest over 2 years. It has a £2900 limit on it but I was wondering if it is worth closing it or leaving it?

I have a regular everyday credit card that I pay off IN FULL every month but I am looking to apply for a home improvement loan in the next couple of months and don’t want the PO credit card affect my chances of approval.

Just wondering what people suggest I do with the card? I don’t plan to use it as the 0% will end soon.

Thanks in advance!

[Deleted User]

It's a very low limit, and if you only have the two cards, I would definitely keep it open.

It's always wise to have a back up for when your other one gets rejected while you're buying petrol at 2am in the morning.