Should I keep an old card?

in Credit Cards
3 replies 528 views
Hi,


I've been using a Tesco credit card for the past few years, and have just swapped to using a new Amex card. I clear the balance each month so there's nothing owing on the Tesco card, and I don't plan to use it any more.


I want to apply for a mortgage in the next 6-12 months, and not sure whether what I do with the Tesco card might affect that?



I could keep it at it's current credit limit (£6900), but there seems little point as I don't intend to use it. Or I could keep it but reduce it's limit to a smaller amount, so my file shows less available credit. Or just close the account, but potentially lose the credit history?


Not really sure how it works!


Thanks!

Replies

  • [Deleted User][Deleted User] Forumite
    0 Posts
    MoneySaving Newbie
    The current limit is low anyway.

    Keep it as a backup for when you go somewhere where AMEX is (now rarely) not accepted, of if there is an issue with their payments system etc.

    The card will look good on your report as it shows account stability.
  • sparkey1sparkey1 Forumite
    444 Posts
    ✭✭
    Keep the card.

    1 Dont lower the limit as it raises your overall utilisation across all your credit cards.

    2 Amex have good offers from time to time. See AMEX rewards.

    3 Account stability

    The only reason to ever get rid of the card at present is if there is an annual fee, and you dont wont to pay it. In which case take out another Amex Card without a fee, then ask them to swop your credit limit from old to new card.
  • I read somewhere you shouldn't open and close credit card accounts too frequently or that will affect your credit score.

    Even when a 0% balance transfer offer has ended and I've paid off the card, I just keep in a draw for a few months, then cut it up when I remember. My credit rating's always been pretty good.

    But different people tell you different things eh?
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