Should I close or transfer old credit cards?

Steven.Still

Hi,

I have 2 credit cards, with a pretty decent credit limit between them. 1 is old, currently unused, and all offers are expired on it, so I pay interest on purchases. The other is newer, used and is still in the offer period. I found an article on the main MSE website suggesting that instead of closing old and unused cards, they should be kept open, as closing them may impact negatively on your score and credit limit in the future.

My question is; to what extent does this go? Should I keep the older card, and indeed the newer one when the offers expire, even though i'm paying interest on it (them) and to maintain the high credit limit, or should I spend money and then balance transfer to another card, potentially taking the hit on my credit limit and available funds? Which is better?

Thanks forumites!

[Deleted User]

Neither move will affect your credit score as it’s not a thing lenders see or care about.

You say they both have high limits - how high?

Are they both the same provider?

You won’t incur any interest on the older card if you use it and pay the balance back in full each month (as you should be doing anyway).

Steven.Still

Hi Gary,

1, with Barclaycard, has a limit of £5300. This is the older one, which I now pay interest on, but currently has a balance of zero. The second is with Capital One and has a limit of £3600.

So, from your final statement, I can keep the Barclaycard one, as long as it's used and paid off each month, therefore avoiding interest charges. In what circumstances then, would you consider changing card provider to take advantage of offers?

Sorry, to clarify, I do have my own thoughts, I just want to canvass opinion!

[Deleted User]

Ok - so not really high limits.

You can keep it as it helps with the account age on your credit files.

Or if you want to apply for a different one then do so by all means but use an eligibility checker first to see what you potentially qualify for

A4445

I’d keep both the limits are not particularly high. 15k would be high in my opinion.