Keeping unused Credit Card vs Cancelling

Ebe_Scrooge

Dandytf said:

Thrugelmir said:

In time if you don't use the cards. Expect the credit limits to be cut. 

Does that happen often, I'm considering closing some from 2021.

 

I'm not sure how often it happens, but it does happen.  There's a very simple reason - keeping your account open incurs a cost for the card company.  They have to produce statements, perform all the auditing and reporting and whatnot, stuff like that - OK, that in itself is a relatively small cost in the grand scheme of things.  Perhaps a bigger aspect is the money itself - if you have a £5000 limit, that's £5000 they have to keep ring-fenced for you, should you want to spend it.  If you're not making them money (not necessarily by paying interest, more by just using the card and earning them merchant fees), then they'd prefer to offer that ring-fenced money to a more profitable customer.

That's perhaps a bit over-simplistic, but the general gist is correct.  End of the day they're a business - if you're not creating an income for them, they're not happy :-)