We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

Keep old credit card?

pinknsparkly
pinknsparkly Posts: 545 Forumite
Ninth Anniversary 500 Posts Name Dropper
Hi all,

My husband has two credit cards with the same lender - one is an old 0% credit card that is no longer interest free and the other is 2 year+ 0% interest free purchase one that we are currently using for stoozing.

Given that he will have held this new card for over 2 years by the time he next applies for a credit card, is there likely to be much benefit to his credit history in him also holding onto the older credit card (he's had it a little over 3 years, so will be around 5.5 years when he'll next be applying)? If there is then we can certainly ensure that we use it once a month to keep it active, but if there's not likely to be much benefit then it's one less thing to do each month :)

Thanks!
MFW2023 challenge #99: £1090.11 / £1,000 MFiT-T6 (Jan 2022 - Jan 2025) challenge #99: Reduce mortgage to £400,000. Current balance = £413,551.19 Initial MF date (23rd Aug 2022): Sep 2051 Current MF date: Jul 2051 Last updated: 15/06/2023

Comments

  • How many other cards does he have?

    I wouldn't drop below three or four, nad don't close anything shortly before applying for further credit.
  • Hi zx81. These are the only credit cards he has (and has ever had) - so two credit cards in total. We opened the first one for him specifically to build up some credit history a few years prior to applying for a mortgage as up to that point that he had no credit history beyond an overdraft on a student account. If it was advisable to close the older card then I would do it soon rather than leaving it until close to the time of wanting to apply for another one in a couple of years time.
    MFW2023 challenge #99: £1090.11 / £1,000 MFiT-T6 (Jan 2022 - Jan 2025) challenge #99: Reduce mortgage to £400,000. Current balance = £413,551.19 Initial MF date (23rd Aug 2022): Sep 2051 Current MF date: Jul 2051 Last updated: 15/06/2023
  • Keep them both and consider getting at least one more from a different provider.
  • Lovely, thanks so much zx81. Presumably making a single purchase on the older card (and new one if he applies for a third) each month and paying it off in full via direct debit is sufficient?
    MFW2023 challenge #99: £1090.11 / £1,000 MFiT-T6 (Jan 2022 - Jan 2025) challenge #99: Reduce mortgage to £400,000. Current balance = £413,551.19 Initial MF date (23rd Aug 2022): Sep 2051 Current MF date: Jul 2051 Last updated: 15/06/2023
  • Yes - not even that frequently will be fine. Three of four times a year will be enough to keep them ticking over.
  • Thanks zx81, that's very helpful - I'm glad I asked the question!
    MFW2023 challenge #99: £1090.11 / £1,000 MFiT-T6 (Jan 2022 - Jan 2025) challenge #99: Reduce mortgage to £400,000. Current balance = £413,551.19 Initial MF date (23rd Aug 2022): Sep 2051 Current MF date: Jul 2051 Last updated: 15/06/2023
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 347.1K Banking & Borrowing
  • 251.6K Reduce Debt & Boost Income
  • 451.7K Spending & Discounts
  • 239.3K Work, Benefits & Business
  • 615.2K Mortgages, Homes & Bills
  • 175K Life & Family
  • 252.7K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support 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.