Is it best to close credit cards that are not used any more?

CountryG_2

Hi

I have been doing the 'credit card shuffle' and have cards that purely were used for that. Is it best that I close them down or is it best to leave them open? Does it affect my credit rating if they are still open - or help it as they were managed well? Does it affect my chances of getting another card, the number I have open or is it best to close them all down? But thereagain I guess the more I have open the more I am open to fraud although they have never been used to purchase anything at all.

Would really appreciate any feedbck.

[Deleted User]

It depends on your balances, limits and income as to whether its best to close them or not.

stator

Generally I would say yes close old credit cards you're not using. Having some 'available credit' is a good thing so always keep two credit cards open but having too much and the banks won't let you open a new one.

jamesd

The age of credit accounts is a positive factor in credit scoring, so you can reduce your score by closing old accounts.

Well managed accounts are a good thing.

Total credit that appears to a lender to be excessive is a bad thing.

Borrowing more than a creditor's opinion of what is too much of your available credit is a bad thing.

Some cards offer interesting existing customer offers that don't involve new credit searches.

Cards often treat you as a new customer eventually and you might get better deals than existing customer deals.

CountryG_2

Thank you so much everyone for your replies, much appreciated.

Laj

FYI,

If anyone has a credit card they are no longer using it is worth calling up the company. I called up to cancel the card and they are crediting my account with £20. I asked if there was a catch to how long I have to leave it open now and was informed no. I also was informed that this £20 would be credited to my account within 24 hours and if in the future I decide to cancel the card I would not have to pay this money back.

steve_ben

If you close a Nationwide Credit Card Account, if ever you apply to them for a new card at some stage in the future, you will be considered ineligible for any introductory offers

guesswho2000

steve_ben wrote: »

If you close a Nationwide Credit Card Account, if ever you apply to them for a new card at some stage in the future, you will be considered ineligible for any introductory offers

Not true, you're eligible again after 12 months have passed since closure.

planteria

guesswho is right about Nationwide, steve_ben

jamesd wrote: »

The age of credit accounts is a positive factor in credit scoring, so you can reduce your score by closing old accounts.

i didn't know that. interesting james. i wonder whether the 'age' is with the provider, or with the individual account. i've had 'credit lines' with Amex, MBNA and Barclaycard for 10+years, but they have moved between accounts at various stages, with better deals & limits being 'merged' as deemed best.

Laj makes a good point. i tend to let an account sit at zero for a few weeks, and then call the provider and ask for a repeat deal of some kind. if there is nothing forthcoming, generally, nowadays, i would close. it seems as though having a simpler, leaner credit file is more beneficial than it used to be. a few years ago it was no problem to have 20 or so card accounts & still be able to get a useful limit on a new card with a good introductory deal.

only other thing to bear in mind is that, as i refer to above, merging limits can be possible. so if you have, say, a Barclaycard or MBNA card and they don't offer a repeat deal that appeals to you, it may be worth applying for a new Barclaycard or MBNA card with a good introductory deal. and then ask them to move the limit of your existing card across to the new one, thereby enabling you to benefit more from the deal. good luck:A

dekoder

Could you advise please.
Got a BT card (barclays 24months 1,15% fee) with £6500 limit. Transferred both my balances, £3500 together. Don't have any other to transfer.
Should I lower the limit on it?

Got 1 more CC (not 0%) with limit of £1500 that I pay off every month if I spend on it. Also would like to get a new 0% purchase card soon. Income circa £30k.

stator

If you don't think you'll need the extra credit then yes, reduce it. I don't know what your credit limit will be, but if they calculate it as 8k for a CC then you're at your limit. If they calculate it as 10k then they would only offer you a £2k cc and you wouldn't be able to transfer your whole balanace. So unless you need that £6500 limit I would reduce it to £4k. If you need room for emergencies then leave it higher.