What to do with an 'old' card?

chelseablue

Hi All

What should I do with a credit card I will no longer be using?

I have applied for a Morgan Stanley cashback card. Just phoned customer services and they say my application has been accepted and I will receive a credit agreement to sign. So thats all good!

So I will no longer be using my capital one card as it offers zero benefits. Shall I cancel my account or keep it open to show a long relationship with a provider?

I have had the capital one card since 2004 and have never missed a payment and I dont them anything.

Thanks!

malamute

chelseablue wrote: »

Hi All
Shall I cancel my account or keep it open to show a long relationship with a provider?
I have had the capital one card since 2004 and have never missed a payment and I dont them anything.
Thanks!

I would not be to quick to do anything, keep the capital one card in reserve and see after 3 months how Morgan Stanley have performed.
Its also handy if your main card gives any problems example both my Amex and GE cards would not work when trying to buy an item over the Internet the reserve card in my case Morgan Stanley worked had it not i would have missed a bargain and that wouldn't do would it.

exel1966

If you only have the one additional card I would keep hold of it. Always best to have one in reserve (providing you don't have to pay a fee for it).

Two c/cards is not a lot to hold unless you have exceptionally high credit limits. It will only have a very minor impact on your credit rating and your ability to obtain further credit.
If you had 3-4 reserve cards, then yes it would be better to cancel them (but this is very subjective) as financial institutions would be able to see your available credit !

sicker

Another way to look at it is that if you close the card, in the next few months if Capial One come out with a new offer, you can apply for it as a new customer.

John

chelseablue

Thank you for the replies.

I will keep the capital one card just in case I dont like morgan stanley!

The capital one card has a £5,000 limit:eek: should i reduce this so Im not seen to have too much credit?

---lee---

chelseablue wrote: »

The capital one card has a £5,000 limit:eek: should i reduce this so Im not seen to have too much credit?

For cashback cards, I set the limit to twice what I would normally spend in a month + a bit more for anything unexpected. Anything beyond that is a waste as I won't use it.

As you say your card offers no benefits though, I don't see the point in keeping it. Also, if your going to close if when your application goes through, what's the point in changing the limit in the meantime?