Close paid off bank account or keep it open?

GeorgeRob

Hi,

Until recently I've had 2 current accounts - one with HSBC and one with Lloyds. Both had £100 ODs, but I always treat it as my money so I'm always maxed out and have to pay them both £6 - £10 a month in fees.

So I took advantage of First Direct's offer to pay £125 to switch, and have now got a 3rd Current account with them, with no OD at all. Then I took £100 of the incentive money they gave me to switch, and have paid off the HSBC OD. So that account now stands at £0.00.

My question is, do I now close the HSBC current account, or leave it open, at £0.00 with £100 OD. My thinking being that having available credit but not using it might be better than no credit at all?

This also applies to my credit card - I have a £1300 credit card with Lloyds that I paid off last year, but I have kept that open too.

Any advice appreciated.

cheers

Tixy

I would probably close the current account.

But I would keep the credit card open - especially if it is your only credit card.
If it is your only account and you are not using any other credit then I would use it for say a couple of purchases each month and pay in full each statement (only if you will definitely pay it off).

GeorgeRob

Tixy wrote: »

I would probably close the current account.

But I would keep the credit card open - especially if it is your only credit card.
If it is your only account and you are not using any other credit then I would use it for say a couple of purchases each month and pay in full each statement (only if you will definitely pay it off).

Thank you, great I thought that was the way of it. I'll close it down soon then. Yes I keep meaning to use the credit card from time to time just to improve my rating but I keep forgetting!

forgotmyname

Setup a direct debit to pay it all all each month.