credit card

sheer63

0% purchase card comes to end next year .Should i cancel the card as i want to replace it with another 0% purchase card or just put it in the back of the draw . Ive read cancelling cards can effect credit score ?

onlyfoolsandparking

Depends on the circumstances, how many cards do you currently have?


You don't need to cancel the card and some card companies offer new 0% deals 1-3 months (or longer) before your existing deal comes to an end.


Also nothing stopping you applying for new 0% card (these are usually the best deals) and then transferring off your existing one before deal ends.


IMO it doesn't matter how many cards you have its how you use them and your total utilisation, this is what lenders are most interested in, I have 7 cards with a total limit of £150k, I've never been anywhere near that limit but I can shuffle the balances around as and when I feel, make big purchases when I want and apart from the BT fees I've not paid any interest on credit cards for years.


I think the only way cancelling a card could impact on your score is the effect it would have on your total utilisation, the total utilisation percentage would go up and this could be looked upon unfavourably.


I use about 20-25% utilisation at any one time and I think?? this looks ok to lenders, well it must do in my case as I have always had great offers all year round.


Oh and you do know a credit score means nothing to lenders, they cannot even see it, all they are interested in is payment history, no CCJ,s, on electoral roll, long time lender, long time residence oh and the biggie NO MISSED PAYMENTS.

[Deleted User]

Keep the card as a backup and use every now and then and pay back in full.

Ignore your made up score as well

PRAISETHESUN

Lenders like to see stability so having older accounts is generally looked upon as positive. The flip side is that having access to lots of credit can scare off lenders, so you need to look at your situation and decide what is best. If you don't have access to too much credit, I'd just transfer the balance to a new 0% card and keep the old one open, using it occasionally to keep it from becoming dormant.