We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Unused Credit Cards

Options
I have three credit card accounts, one I use and pay off every month and two that are unused.

If I close the unused credit card accounts, will it improve my credit rating or does it make no difference?

Many thanks
«1

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    It would be wise to keep and use at least a couple of them so you have a back up.
  • peter312
    peter312 Posts: 9 Forumite
    Thanks for the response. I will likely keep one of them. They both have high credit limits and my concern is that have these facilities available to me will make me less attractive to other financial institutions (e.g. the next time I want a bank loan).
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    What are the limits and what's your income?
  • peter312
    peter312 Posts: 9 Forumite
    edited 13 March 2017 at 10:20PM
    credit limit on each card is c. 20% of my salary
  • PixelPound
    PixelPound Posts: 3,058 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If total liability is less than annual salary then it shouldn't matter. Another consideration is how old the cards are. If you close a card that has been open the longest it will decrease credit score, but it is only a minor factor.

    You don't have an excessive number of cards nor total liability, and as you clear each month, no real detriment to closing them. You could also phone up the 2 that you are thinking of closing and saying you are going to close them and see if they will make an offer to keep them open, such as promo rate. Though maybe that isn't important to you if you are clearing balance of the one you use each time.
  • Thank you for your reply.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    1,000 Posts Combo Breaker Newshound!
    It would make very little difference. 3 credit cards is not a lot of cards. It might be a good idea to actually use the other 2 cards though instead of leaving them completely unused all the time.
  • PixelPound
    PixelPound Posts: 3,058 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    Well close them or use them seems to be the views. No point in unused credit cards staying unused (potential risk is you forget they exist and don't miss the replacements when they go missing)..

    What we really need to know from the OP is the ultimate goal - why they want to improve their rating by taking action with the cards. Credit building for the sake of it is pointless, its just a number you see. Wanting high just in case some day you ever may need to apply for credit but nothing definite at present is little use too as so many things can affect it more than a couple of unused cards
  • I have a cc with a high limit and don't use it
    Due to change in circumstances I probably won't get the same high limit
    If close account, wil it enhance the chance of getting another card?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    If it's your only card, probably not.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.