Close credit cards?

Ineedabudget

I have been debt free for a while now (thanks to this website and YNAB) but still have 2 credit cards and not sure what to do.  Both charge over 20% interest and have nothing on them.  One has a credit limit of £9400 and is linked to my bank account (BOS) and the other is a Barclaycard with a limit of £1000. I am working on saving my 6 month buffer at the moment.  Is there any advantage to keeping one of the cards going?  I currently pay a monthly subscription of £12.95 on the BOS one just so it's used but clear it as soon as the transaction's cleared.  Apart from remortgaging in 2023 when the fixed rate comes to an end I don't plan on applying for or using any credit. Should I close both cards or keep one with a small limit (and if so how much?)?  I'm concerned not having any credit could affect our remortgage but don't really understand how it works.  I am lucky to be employed in a very stable job.

Thanks for reading.  Would appreciate any advice.

Costabit

I will be interested in the thoughts , replies etc to this as I am thinking of closing several cards that have just finished stoozing on.
For what its worth , I cant think of any reason to close the high limit BOS card , everybody needs a credit card at some point in their life I would imagine. 

Ineedabudget

Costabit, thanks for your reply.  Yes, that makes sense.  I wouldn't want to be in a position of needing it and not having it, and I know it would only be used if totally necessary.  But on the other hand I wouldn't want a high balance on there due to the interest that would be charged so probably wouldn't use it for that. 

[Deleted User]

If you only have the two cards, keep both and consider adding another one or two.

Don't pay off the balance immediately. Wait for the statement. Use the cards for all your regular spend, clearing in full each month.

This is all assuming you can control your spending.

Ineedabudget

zx81 thanks for your comment. What is the advantage of using credit cards for all regular spending? I've never really considered this. With using YNAB I'm pretty in control of my spending but having been in debt the thought of doing this is a bit daunting. 

[Deleted User]

It demonstrates you can use credit responsibly. Plus of course, financial gains, s75 and other card benefits.

cymruchris

As mentioned - don't pay off the balance as soon as you've completed a transaction. Wait for the statement, and set up a direct debit to pay the balance in full automatically. 

I wouldn't close either account - as firstly they are good to have available in dire emergencies - and secondly it shows positive financial history.

If when it comes to a  remortgage you decide to go elsewhere to another bank - this will be more favourable in your history file than someone that has no credit cards at all. Every little helps towards you getting the best possible deal.

Ineedabudget

Thank you both for your helpful responses. I'm glad I asked. I think I'll keep using it for the subscription and paying it off by DD as suggested. And maybe look into opening one which offers rewards for spending. Thanks again. 

J_B

Ineedabudget said:

  I currently pay a monthly subscription of £12.95 on the BOS one...........

Surprisingly, nobody has commented on this - why are you paying this?

Yes keep using  C Cards and pay off *IN FULL* by DD- it shows borrowers that you are capable of keeping up repayments.

Ineedabudget

J_B said:

Ineedabudget said:

  I currently pay a monthly subscription of £12.95 on the BOS one...........

Surprisingly, nobody has commented on this - why are you paying this?

Yes keep using  C Cards and pay off *IN FULL* by DD- it shows borrowers that you are capable of keeping up repayments.

 I worded this wrongly, sorry. I use the BOS card to pay one of my monthly subscriptions for a club. I realise it sounded like I was paying for the card. Thanks, it definitely makes sense to keep using them now. 

cairndog

How To SAFELY  pay for goods online ?

This week I noted a payment from my Online Bank had been taken with no request for the card's Security Code.

I rang my bank to query this, and was told that if I was worried, they would cancel the card and send a new one in 3 days.

This infers that payment for any online goods can be taken without a request for the code.

I was ( naively )  shocked by this as I use my Debit Cards to pay.

Only my online Grocery deliveries always ask for the code when payment is taken.

I need to know the SAFEST  way to pay for online goods ( as soon as possible please ).

I do also have a Credit Card.

I need your helpful suggestions.

Thanks from Redcairn.