Should I cancel this unused credit card?

KidDynamo

I'm just seeking a little advice on credit file management. I have a default on my file that is due to expire under the six years rule next month. It was a disputed default (which was paid off in full) but I won't go into that here as it's going to come off my file anyway shortly.

I have been steadily building up a good credit history in the past few years with credit repair cards such as Capital One and always paying on time. Last year, I took out an additional card with Aqua which had a 0% balance transfer offer that I never took up and haven't bothered to use, especially since that offer has now expired and I am unlikely ever to use that card. I note that they have now halved the credit limit on that card.

As it's of little use to me, I was thinking of cancelling the card altogether as it is surplus to my requirements. Will it harm my credit rating in any way to do so?

Willing2Learn

Use the second card (Aqua) for half of regular budgeted monthly transactions (such as groceries and travel expenses). And then pay off in full after each statement and before the due date.


It is good to have two different credit accounts being managed successfully on your credit file(s). Also, if one of the cards fail for any reason, then you have a backup card to use.

Edit: Closing a credit card will reduce your credit score. But seeing how the credit score is for your eyes only, it does not matter. (Lenders do not see your credit score).

[Deleted User]

As long as you have three or four other cards available and in use, closing it won't matter too much.

KidDynamo

Thanks for the replies. I've noticed that the default has now fallen off on the Noddle app (which is linked to Callcredit or TransUnion as it's now called), which has boosted my rating with them from 2 stars to 5 stars (the top ranking). This makes me pretty pleased as I'm now eligible for much better deals.

Noddle apparently updates weekly, whereas the credit clubs I use for Experian and Equifax only update monthly, so I'll wait for those to clear the default too before applying for anything.

The default wasn't due to expire until next month, so I can only assume that the lender lifted the default slightly ahead of time?