Should I cancel this credit card

HJ1990

Hi all

I have a Natwest credit card with a £500 credit limit - got it last year to pay car insurance (interest free of course) and now it's fully paid off. Never missed a payment and always paid more than minimum so it's boosted my credit rating.

However now the new customer deal has ran out so I don't need it. I do however want to get a new credit card for my car insurance which will be purchased next month.

Do I cancel this card or keep it? I hear differing opinions. Some say it's good to have unused credit because it shows you have access but don't max it out. Others say it will limit how much you can borrow on a new card as you have access to credit already and so could potentially get into problems with multiple cards on the go.

I also have an interest free card with about £1000 borrowed on it - again never missed a payment.

Thanks for any advice.

Helen

sfax

I would recommend keeping at least 2 open. Longevity can be important so it's sometimes best to keep the one with the longest history. Your limit on the NatWest card is low and won't make much difference to your overall credit picture

HJ1990

Thanks for this, I suppose £500 in the grand scheme of things is nothing!