Credit cards after Balance Transfer paid off

Cookiepops

What do you do with your credit cards once the balance transfer is paid off? I have about 9 cards now that have nothing on them. I don't want to do anything that will affect my credit rating so should I have the accounts closed or ask to have the limits reduced (as suggested by a customer advisor)?
Thanks!!!

lr1277

I am in a similar position to you. I have paid off my card debts. I am currently continuing to use the cards because:
The amazon card gives me points towards amazon gift vouchers
A colleague has barclaycard and he says the company was very cooperative when there was fraud on his card. I intend to use this card for what I call purchases from (less secure than I would like, or where I don't know the company) websites.

I am looking at cards with no foreign exchange fees as I am going on holiday over Christmas. The exchange rate applied on the amazon card is rubbish.
Edit: I have just looked at the PO website for currency rates and amazon's rate for a transaction (including the 2.75% fee) is better than that offered by the PO for cash dollars.

If you decide to get a new card for your new situation, I would apply for it whilst you still have your old cards. Then once you have got your new card, assuming the limit is OK, I would cancel your old cards.

I am not sure what card companies do if you hold cards that you don't use? I do know Barclaycard don't send out statements if you don't owe them anything nor have spent anything that month.

Moggles_2

If you take no action, the unused cards show on your credit file as available credit, even when statements have ceased and the cards have expired. Depending on your income, this could reduce your chances of acceptance by other card companies and affect the credit limit you're likely to be offered.

Should I have the accounts closed or ask to have the limits reduced?

IMO, unless a card has a particular benefit, it's best to close the accounts you don't use. A phone call to customer services should be all that's required, but best practice is to ask the lender to confirm closure in writing

If the promised confirmation letter does not arrive within a couple of weeks, phone once again to ask why.

Finally, if your credit reports do not show the card(s) in question as "settled" contact the lender(s) once again and ask them to make the necessary changes.

The whole process (from the initial phone call ) can sometimes span a couple of months.

jinny103

If a credit card entry on your credit report states settled 15/05/05 credit card limit £6000 does this mean the card is cancelled, or will this look as if there is £6000 available credit?

Moggles_2

Originally Posted by jinny103
If a credit card entry on your credit report states settled 15/05/05 credit card limit £6000, does this mean the card is cancelled or will this look as if there is £6000 available credit?

Accounts marked "settled" have been closed down, so do not count as available credit.