Should I close NatWest YourPoints to protect credit record?

7sefton

Hi there


I have 4 credit cards - none of which have outstanding balances on (I use them for a combination of rewards points and 0% purchase deals, and always pay off in full). They are:


Amex Gold
Tesco Clubcard
Halifax Clarity
NatWest Your Points


I never ever use the NatWest YourPoints and simply have it because they give me bonus points on the anniversary of the card opening (enough for something small - but free! - like a £10 gift voucher or 2 cinema tickets).


I'm thinking of closing this account to help consolidate the number of providers I deal with, and help protect my credit file (which is good, but I guess does have a lot on there what with credit cards and lots of bank accounts for credit interest).


Do you think the benefits of closing the NatWest account outweigh the £10 'reward' each year, or will it make no difference?


Thanks for your advice.

stator

If you are planning on apply for a mortgage or other credit in the near future then yes, you might want to rationalise your available credit. If they think you have too much available already a bank might not lend to you.
Another option might be to reduce the credit limit on your card(s). If you lower the limit it will reduce your total available credit and might make other lenders more willing to lend to you.
If you aren't planning on applying for credit then the only other reason to close the account would be the risk of fraud. You wouldn't be liable for fraud (unless you do something incredibly stupid) but it can be a hassle getting everything sorted out.

grumbler

The (total) credit limit is much more important than the number of cards.
If the former isn't big, closing one card won't make a noticeable difference.

7sefton

£850 limit on the NatWest Card, around £3K on the others combined... what do you think?

stator

It depends on your salary and circumstances. If you're earning £50k those limits won't make a difference. If you're on minimum wage they would.