Should I close dormant Credit Cards?

cookie666

I've picked up a few cards over the years for items like Meerkat Movies where I've used the card and now it has a zero balance.

Should I close these down or leave them as active (I don't intend to use any of them).

What's the best practice?

[Deleted User]

It depends on your limits, income and planned usage.

cookie666

I never plan to use the cards, is there a benefit to keeping them open/closing them?

Most of the cards are between £3-5K)

Willing2Learn

If it were me, I would keep four of the accounts open, the ones that have been open the longest. I would then use a card a week, so that evidence of continuous successful credit account management is on my credit file.

System

Willing2Learn wrote: »

If it were me, I would keep four of the accounts open, the ones that have been open the longest. I would then use a card a week, so that evidence of continuous successful credit account management is on my credit file.

Why not keep six :rotfl:
What a weird way of looking at life / credit

Look at those with the longest 'life'. best perks and limit then take it from there...

cookie666

So it does not affect my credit rating if I have several cards with zero balances that are not used?

Ben8282

Your reason for applying for these cards is very odd.
Just how many cards are 'several' 'cards?
If by credit rating you mean your credit score, this is meaningless so forget about it.
What is your reason for your concern about your credit rating? What are you planning to apply for? More credit cards to have but not use?
The fact that you have successfully applied for these several cards and have been given reasonable limits would imply that there is nothing wrong with your ability to obtain credit. Have you recently experienced any difficulties such as a refusal or ridiculously low limit? If not, then why are you suddenly so concerned?

cookie666 wrote: »

So it does not affect my credit rating if I have several cards with zero balances that are not used?

This is not really answerable, Do you actually use credit cards for any purpose? If you do and should decide to make a new application for a credit card that you actually intend to use, it is possible that the lender may see that you already have several credit cards that you never use and as a consequence decline the application on the basis that they don't believe that you will ever actually use their card and that it is therefore a waste of their time giving it to you. Equally, the lender may see that you are trusted with several credit cards and have a good amount of unused available credit and view it favourably. Depending on just how many unused cards you have and what the total of the credit limits adds up to, you could be coming to the point where lenders may be reluctant to give you more credit.
You are certainly not helping to build a credit history by never using the cards as potential lenders can only see that you have access to unused credit but will not be able to establish any use pattern or see that you are able to manage credit apart from not using the facilities available to you.

cookie666 wrote: »

I never plan to use the cards, is there a benefit to keeping them open/closing them?

Why?

cookie666

Why is it an odd reason for getting cards? I've had a couple of them so I can get the 2-1 movie vouchers from Compare the Market, I may have put small amounts on and then paid them off, they are then dormant to me, hence me asking should I just cancel them completely?

Zero_Sum

cookie666 wrote: »

Why is it an odd reason for getting cards? I've had a couple of them so I can get the 2-1 movie vouchers from Compare the Market, I may have put small amounts on and then paid them off, they are then dormant to me, hence me asking should I just cancel them completely?

You can get the meerkat rewards by buying very cheap travel insurance for £1 that you dont use.

If any of the cards have any perks like cashback or various rewards, interest free on purchases etc, then these can be utilised. If not might as well get rid (but would keep at least one & use it regulary, paying off in full)

Ben8282

cookie666 wrote: »

Why is it an odd reason for getting cards? I've had a couple of them so I can get the 2-1 movie vouchers from Compare the Market, I may have put small amounts on and then paid them off, they are then dormant to me, hence me asking should I just cancel them completely?

I wouldn't apply for a credit card for the sole purpose of getting 2-1 movie vouchers. Most people would apply for a credit card with the intention of actually using it to take advantage of a 0% offer or to get rewards or cashback or to help with budgeting or perhaps for s75 protection, not to get 2 for 1 cinema tickets.
So are you saying that the 'few' credit cards which became 'several' credit cards are in fact a couple of credit cards i.e. two?
Nobody can give you proper advice without knowing at least how many cards you are talking about.
You say that you are never going to use the cards and you obviously want to cancel them so you might as well just go ahead and do it.

18cc

I think it is as much a personal preference as anything....

If it were me I would close unused ones - I don't like having accounts I don't use lying around. But this is only a personal preference. Others love having as many accounts open as they can possibly get!

I have heard it is best to leave the card that has been open the longest open as it shows you have a long credit history if that makes sense.