Should I cancel my credit card?

tommysport

Hi all.

First post here. I have read the article on whether or not to cancel a credit card or not but I still am slightly unsure what to do!

Here's my scenario:

I'm 22. About 2 years ago I opened a credit card account (free) and used it once when on holiday, paid it all off, and never used it again. I still have it open and don't use it.

Then I opened an account with a mainstream bank and got offered a credit card with 'cashback' (Up to 3% on fuel) which really appealed to me.

Have used it for over 6 months, making on average around £8 a month back on the interest. £2 monthly fee.

Now, this has gone up to £3 a month fee, and they have capped the 3% cashback to a maximum of £3..... therefore rendering it useless for me.

What would you suggest I do? I don't need a credit card I was just using it to save more money, albeit £8 a month. As we all know every penny counts haha.

Should I ring them and ask about it?

I don't mind leaving my first one open as there's no cost to me, but I'm wanting to get rid of this second one.

One thing I'm unsure of is if it would affect my credit rating - I've never looked at my credit rating and have no need to. Just don't want anything 'bad' going on there.

Appreciate any tips!

Thanks.

grumbler

Get rid of it. There is no point in paying £3 if it's not worth it.
Keep using the old one to maintain the credit history.

tommysport

Thanks grumbler, will give them a ring, maybe try and get them to waiver it - if not I'll leave!

20aday

*If* this is the Santander 123 credit card you are referring to and you opened it before 15/16th September last year then your Fuel and Travel purchases remain uncapped at 3%/£9 per month.

Candyapple

tommysport wrote: »

Hi all.

First post here. I have read the article on whether or not to cancel a credit card or not but I still am slightly unsure what to do!

Here's my scenario:

I'm 22. About 2 years ago I opened a credit card account (free) and used it once when on holiday, paid it all off, and never used it again. I still have it open and don't use it.

Then I opened an account with a mainstream bank and got offered a credit card with 'cashback' (Up to 3% on fuel) which really appealed to me.

Have used it for over 6 months, making on average around £8 a month back on the interest. £2 monthly fee.

Now, this has gone up to £3 a month fee, and they have capped the 3% cashback to a maximum of £3..... therefore rendering it useless for me.

What would you suggest I do? I don't need a credit card I was just using it to save more money, albeit £8 a month. As we all know every penny counts haha.

Should I ring them and ask about it?

I don't mind leaving my first one open as there's no cost to me, but I'm wanting to get rid of this second one.

One thing I'm unsure of is if it would affect my credit rating - I've never looked at my credit rating and have no need to. Just don't want anything 'bad' going on there.

Appreciate any tips!

Thanks.

This does not apply for existing customers, it's for new customers only. You should still be receiving 3% on transport/fuel - I still make £9 per month from it.

KJLilac

I agree with Grumbler! I would definitely get rid of it. I would just continue to use your old one to build a good credit score as and when you need too - seems like the newer card is more hassle than it's worth!