Should I cancel my old credit card?

jddono

Hi,

I was offered a student credit card when I was 18, 5 years ago with a small never increasing £500 limit.

Since then I have had two more credit cards each with successive lower rates and higher limits.

Card 1 isn't used ever, 5 years old.
Card 2 isn't used but I think it us useful as a emergency fund, has been open 3 years. If it is used I pay the balance off in full for each statement.
Card 3 has now been open 6 months and has a balance transfer under an interest free offer until august 2013. (roughly 60% of the card is used)

I have read conflicting reports on when to close a card with MSE saying to close it if unneeded and other sites saying do not close if you have other active credit cards as it reduces total available credit. Should I cancel card number 1?

*Scarlett

If you have higher interest rates on Card 1 and they don't ever offer any promotional rates that you might be interested in then I would close the card.

As a student you were probably restricted as to the amount and type of credit that you could get and the card is possibly no longer suited to your circumstances.

When you ring them to cancel, you might find that they have a better offer for you and then it would be up to you to consider it.

Reducing the amount of available credit is generally a good thing - lenders want to know that if you have spent the max on your cards you will still be able to repay.

zfr

jddono wrote: »

Hi,

I was offered a student credit card when I was 18, 5 years ago with a small never increasing £500 limit.

Since then I have had two more credit cards each with successive lower rates and higher limits.

Card 1 isn't used ever, 5 years old.
Card 2 isn't used but I think it us useful as a emergency fund, has been open 3 years. If it is used I pay the balance off in full for each statement.
Card 3 has now been open 6 months and has a balance transfer under an interest free offer until august 2013. (roughly 60% of the card is used)

I have read conflicting reports on when to close a card with MSE saying to close it if unneeded and other sites saying do not close if you have other active credit cards as it reduces total available credit. Should I cancel card number 1?

Since it only has a £500 limit, I doubt it will make much impact if you cancel.