Paid off credit card - what now?

[Deleted User]

Hi everyone,
I've paid off a £2000 credit card and on payday at the end of June I'll be able to pay off the last £100 of another £1250 credit card I have. That's all my credit cards, and I have a couple of overdrafts to work on next.

I'm not sure whether to close these accounts. I don't plan on having a credit card ever again so I'm not worried about my credit score for rates. The possibility of getting a bank loan in the future is possible, though not for a while and I would have to really consider it if I did. Maybe down the line I'll get a mortgage, so I do still care about my credit report to a degree and think it could be worthwhile keeping these accounts active if it helps.

However removing the temptation though difficult to do, as I like to feel I have something to fall back on in case something unexpected happens, is also a good choice. I actually got stuck in Paris once and my credit card got me home - couldn't have done it otherwise.

I just want to make the right choice now I've come this far.

[Deleted User]

Keep both cards and use at least one on a regular basis, paying in full each month. Use the other from time to time.

Fellwalker

Great news, congratulations.
If I were you I'd call the card companies and ask them to set up a direct debit that automatically clears your credit card FULL BALANCE from your bank account on the due date. That way you will not fall back into the "I'll only pay off so much this month" situation.
It saves me from charges, and I can still spend on my card and get the cashback.
If foreign holidays or trips are regular, swap one of your cards for one of the MSE recommended cards for travel. I have the PostOffice one which is free of additional commission and uses Mastercard which generally has slightly better rates - far better than cash.
If you do use them, give yourself a budget and keep a track of what you spend on the card(s) to make sure you don't go over.

aphill24

This is interesting as it will apply to me very soon (November) when I am due to be debt free regarding my two 0% credit cards.
My plan is to save up an emergency fund of £5000, I have £1100 already saved and I will use this for funding unexpected purchases that I would normally do using a card. The only reason I am planning on keeping a cc is for car hire abroad and for section 75 but I am going to give my card to my Mother for safekeeping, which will prevent buying things on impulse. I have used cards in the past and have never paid hardly any interest as always been able to obtain 0% balance transfers but I have come to realise that even then you are still paying for things that you have had for months. Much prefer to save up and wait and enjoy handing over the full amount.

[Deleted User]

Well, I've decided to definitely cancel the £2000 card. I've been debating using the £1250 to book a flight to L.A. in August. I know I can easily pay that money off. But I'm going to L.A again in December, and I think I might have to just forfeit the August holiday. Tragic, because I haven't had a holiday in a number of years now, and I also because I could do it if I wanted to. But I got here for a reason, and it was simply by justifying all these purchases, from twice-daily Starbucks to £200 shoes. This is my punishment, it's caught up with me. I would LOVE to be credit card free.

And I'm sure London will be sunny in August. I can just pretend I'm in L.A. Right?

[Deleted User]

I read that in the olden days, some people didn't even go to LA once in a year.

Not sure it that's true or not though.

bigadaj

Deleted_User wrote: »

I read that in the olden days, some people didn't even go to LA once in a year.

Not sure it that's true or not though.

Yes, it's true.

Mind you it's a long way on a horse in armour.

agrinnall

Deleted_User wrote: »

I read that in the olden days, some people didn't even go to LA once in a year.

Not sure it that's true or not though.

I haven't been to LA since 1988, does that mean somebody else has used my last 27 turns? Can I get compensation?