Should I close Unused Credit Cards?

Jasper208

I have two credits cards to my name at the moment. The first card is a Natwest card that I open 5-6 years ago simply to improve my credit rating. It has been dormant for probably 2 years now with no balance on it.

My second card is a Tesco Clubcard credit card which I took out to take advantage of 12 months 0% on purchases. This card has been dormant for around 1 year, also with no balance on it.

My current credit card is actually my wife's and is another Tesco Clubcard credit card (we are it to the whole Tesco thing because we shop there, get fuel from there, use their credit card and get points from our electricity and gas from E.On). This card is almost at the end of its 0% on purchases period so I am looking for another card myself. This time I want to go for an alrounder card as we have some balance on the Tesco card that we wont be able to pay off before the 0% period is over.

My question is: should I cancel my unused credit cards? Are these having a positive or negative effect on my credit rating? Whilst I am comfortable with 2 cards running simultaneously, I am uncomfortable with 3.

Can anyone give me any advice or has anyone else been in a similar situation?

Regards,

J


PS If I had to chose only 1 to close it would be the Natwest card because it is the oldest and I no longer bank with them.

System

Its generally best to keep your oldest card going as this lengthens your credit history. In the short term it shouldnt matter too much as will still stay on your credit file for 6 years after you cancel it (please someone correct me if I am wrong). However I would keep it going myself with an occasional purchase.

Therefore I would cancel your other tesco card. I have the same views as you... 2 cards maximum (at the minute I only have the one...)

rb10

teepee83 wrote: »

Its generally best to keep your oldest card going as this lengthens your credit history.

This can apply to current accounts (to a small extent), but I don't believe it also applies to credit cards.

Jasper208

Thanks guys, it's hard to know what to do because I only need one card as a backup. I have no idea which of the two cards has the best rate or the highest credit limit but I honestly don't expect (or want) to use a second card. My wife will need a new card as well because her Tesco card is running out so that would probably be our backup card any way.

Is having too many credit cards a good or a bad thing as we don't really want to use them at all?

J