Should I cancel credit card I won’t be using?

Lmm08

I managed to get up to 7k debt on a credit card during its two year interest free promotion period (young and stupid!) I got a balance transfer card and moved the balance onto this card. 

I now only have £200 left on the balance transfer card which I will pay off at the end of this month making me debt free! What should I do with this now I no longer need it, should I cancel this card?

Im really pleased that my credit score is now “Excellent” and I’m saving to buy a property next year. I’m still using my original credit card just for buying fuel for my car and then paying it off in full on payday each month as I’ve read this will help keep up my credit score. Do people agree with this?

[Deleted User]

Keep it. You're carrying a large debt, which means you represent a higher than normal risk to lenders. Don't worsen it by having cards closed.

Your credit score doesn't reflect the risk you pose to lenders, so work on getting rid of the debt, instead of just moving it. Your aim should be to impress lenders, not the CRAs.

Use your other card for regular spend and clear in full each month once you get the statement.

Lmm08

Deleted_User said:

Keep it. You're carrying a large debt, which means you represent a higher than normal risk to lenders. Don't worsen it by having cards closed.

Your credit score doesn't reflect the risk you pose to lenders, so work on getting rid of the debt, instead of just moving it. Your aim should be to impress lenders, not the CRAs.

Use your other card for regular spend and clear in full each month once you get the statement.

But at the end of this month I’m paying off the final £200 and will be debt free? The original card has a balance of zero but I used it to pay for fuel and pay it off in full every month

Edi81

I’d keep it open if you believe you have the willpower to not get back into the original debt. 

[Deleted User]

Lmm08 said:

Deleted_User said:

Keep it. You're carrying a large debt, which means you represent a higher than normal risk to lenders. Don't worsen it by having cards closed.

Your credit score doesn't reflect the risk you pose to lenders, so work on getting rid of the debt, instead of just moving it. Your aim should be to impress lenders, not the CRAs.

Use your other card for regular spend and clear in full each month once you get the statement.

But at the end of this month I’m paying off the final £200 and will be debt free? The original card has a balance of zero but I used it to pay for fuel and pay it off in full every month

That's good. I missed that. 

Definitely keep both cards - it shows other lenders trust you and gives you a back up for when one gets declined. 

Lmm08

Edi81 said:

I’d keep it open if you believe you have the willpower to not get back into the original debt. 

Thank you. Okay I’ll leave it. I definitely have to will power I will have cleared the 7k debt in 8 months and have priorities have changed and I’ve learned about budgeting.in a much better financial situation. 

I just thought open and unused credit cards deceased your score 

[Deleted User]

Lmm08 said:

Edi81 said:

I’d keep it open if you believe you have the willpower to not get back into the original debt. 

I just thought open and unused credit cards deceased your score 

They might do, but they generally improve how lenders see you. 

Keep them both from going dormant by using them at least occasionally.

jay1804

Lmm08 said:

Edi81 said:

I’d keep it open if you believe you have the willpower to not get back into the original debt. 

Thank you. Okay I’ll leave it. I definitely have to will power I will have cleared the 7k debt in 8 months and have priorities have changed and I’ve learned about budgeting.in a much better financial situation. 

I just thought open and unused credit cards deceased your score 

Unused credit looks bad on your history, but if you use both cards once a month and pay in full it will help your history.

J_B

Lmm08 said:

I just thought open and unused credit cards deceased your score 

Make sure you use them then   and pay off IN FULL when the statement comes

Danny_G

Keep them incase of a rainy day, you might need to use them for a purchase.