Dormant accounts

matttye

I've just received a credit card with a higher limit than my other two combined, and this card also pays cashback on purchases.

I'm not sure whether to close one and keep the other open for emergencies, or just close both of my old cards. I won't be using either of them. If I keep one open but don't use it, will that have any kind of detrimental effect on my credit files?

Thanks!

VictimOfImpersonation

It is an interesting question Matt. I'm an old geezer with a big CRA file. I have an almost perfect score with Experian (whatever that means - personally I think it is a nonsense in many respects) but I have never voluntarily closed any card account ever. I have had many. I have in recent years had a number closed involuntarily because card companies were pushed to look closely at the crazy limits they had out there on older accounts (affordability considerations I think?) and could not justify keeping dormant multi-thousand pounders on their books.

Interestingly, the ones that suffered when I got hit with ID fraud and lost thousands (on dormant accounts), simply reissued new replacement accounts and they too have remained dormant ever since!

Now I have been hit again with ID fraud and as you know from another thread, apparently my credit history is so good that anyone can open a new credit card account in my name at my address with no further correct information. Any old date of birth will do!

My view, and some may have better advice, is that there is no harm keeping the existing accounts open unless you wish to optimise your chances of getting further new credit cards at better terms to replace them.

grandplonker

General advice on the MSE website is use it or close it. That can be as simple as automatically paying a monthly bill with it.