Just a quickie.

Merlot

I would like your expert opinion, I have two credit cards with zero balances on them (I got them to take advantage of Martins e-mail tips), do I close the accounts or do I leave them dormant for the time being, I ask because of the "credit crunch", I don't know if the media is hyping this up a wee bit, but at this moment I wouldn't want to leave myself without a safety net. I have a very good credit score, a high street mortgage (not sub prime), and no other debt (oh I have £300 on a credit card, but I could pay it off tomorrow if needed, so I wouldn't class this as debt and it is serviced at 0%), and have never been refused any credit, what would you do?

Many thanks in anticipation.

Merlot

lolarentt

It doesn't really matter - whatever you're happy with. I usually have 3 or 4 occasionially active cards (use now and again to keep them running, includes some affinity cards for good causes) and scrap inactive ones if I find they haven't been used for some while. Then I have 2 or 3 'front runners', the ones giving the best deals (Capital One with 4% rebate for the first few months is getting nearly all our business at present). Some friends of mine say they would be unhappy with so many and use only 1 or 2 but I would find this restrictive. If a cc company makes an error which upsets me I like to be able to cancel it with a flourish and letter of complaint! I would add that my partner and I ALWAYS pay our cards off in full every month.

Merlot

Thanks lolarentt, I am wondering if everyone will find it more difficult in a few months to obtain credit, or will it be those with high debts, high mortgages etc?

Merlot

I am bumping this up a wee bit, cause I would like other opinions as well?

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 card has expired. Depending on your income, a collection of dormant cards could reduce your chances of acceptance by other card companies and affect the credit limit you're likely to be offered.

By cancelling a card you can re-apply to that provider as a 'new' customer and take advantage of any introductory deals on offer.

Another good reason for phoning customer services to cancel an unused card is that occasionally you're offered an incentive to stay

That said, if you have only three credit cards at the mo, I would keep them for the time being. You never know when you might need at least one back-up card.