Close down unused card or leave open

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I have a credit card that I no longer use as I transferred a balance on to a better card, am I better to actually close the account down or leave it open for possible future use.

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  • InsideInsurance
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    Up to you and your future possible needs.

    I close most my unused cards but keep one as it gives the wife free access to the RA but then I am confident in my ability to get new lines of credit if needs be in the future and the cards I use have big enough limits for almost any eventuality.
  • grumbler
    grumbler Posts: 58,629 Forumite
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  • AndyBSG
    AndyBSG Posts: 986 Forumite
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    In some strange and completely illogical way, if you close an account it can actually damage your credit rating as I found out when I closed down an old dormant bank account and saw my credit rating drop

    "Don't close your old accounts!
    Another important factor to your credit score is the average age of your accounts. By keeping an old card open that you don't use, you add history to your report. If you were to go and close this account, your average history would be reduced thus decreasing your score."
  • InsideInsurance
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    AndyBSG wrote: »
    In some strange and completely illogical way, if you close an account it can actually damage your credit rating as I found out when I closed down an old dormant bank account and saw my credit rating drop

    By score you mean the random number the credit references generate to flog to you for silly money but no one else in the world ever sees?

    Credit rating is a complex art and every lender has their own way of doing it. You cannot look at a single item in isolation as most actions have both positive and negative impacts and which is greater depends on the bigger picture (and which lender you are asking)
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