Will closing all credit cards have a negative effect on credit rating?

ice_babe

Me and my husband have paid of all our credit cards and closed them all apart from my tesco credit card which we both use for the extra clubcard points and pay in full every month. And my husband has a small balance on a 0% Barclaycard which will be paid of in full by the end of the 18 month interest free period.
Once my husbands Barclaycard is paid of that will be closed also.

What I was wondering was, will this have a negative affect on my husbands credit record if he doesnt have a credit card?

chanz4

No credit is as bad as a lot, however I cant honestly say anyone apart from the banks really know and we are just guessing

jonesMUFCforever

Not if he has paid them all off.

However is this a good move?
For any transaction over £100 S75 cover comes into play - you don't get this with a debit card. In the scenario of your account being hacked with a credit card they will be using the bank's money not yours.

It is a great feeling being debt free but I would keep one open for situations as above and emergencies.

ice_babe

We arnt debt free yet, have a mortgage and loan.

We use a tesco credit card for all everyday purchases and pay in full each month. Its in my name and husband is a cardholder.

I was wondering if husband no longer has a credit card in his name would that have a negative effect on his credit rating.

jonesMUFCforever

As chanz4 has said it could - then my post advises you to keep one card open in case of emergencies.
Use it say once a month for a small transaction to keep it live and avoid dormancy charges.
As a cardholder on your Tesco card this does not show up on any credit report as you have sole responsibility for any outstanding balance on both cards.