Closing down an old card

iamguyster

I've just opened an account on a new card as I am using it to gather Avios (limit 9k).
However, I have another card which I now don't use (Tesco clubcard one, limit 9k). I've had that one for about ten years.

Generally, I pay off my card balances almost immediately, so rarely have any balance on them at the time of statements. I also have an Amex with a limit of 7k. At the moment, the balance on all three is less than £200 combined.

I feel like I should close the Tesco one, as not only am I not using it, but it leaves me with more available credit. I worry though, that if I close a longstanding card, my credit rating will suffer. is this something I should worry about?

What do we think? keep it open, or close it down. This is especially important as I am looking to remortage in six months and don't want to affect that rating too much.

born_again

Do you have any large spends on the old card that may require a S75 claim at some point in the next years?

If not & you do not want to use it, then you may as well close it.
Credit rating means noting to lenders, it is a figure peddled by CRA that is never seen by a lender.

lr1277

Don't just consider S75/Chargeback. Anything you bought that might require a refund at any point?

In my case I paid for car tax with my credit card then decided to SORN it. In the meantime, the company closed my card (the old John Lewis card). By the time I decided to SORN, I felt it was too late as I wasn't sure John Lewis had enough people knowledgeable to process the returned money from DVLA/C. So I have left it to renewal time.

iamguyster

A couple of good points there. I'll check through purchases with it and see if anything might need a refund or charge back in the near future. 

I'm afraid I've been hung up on my credit rating after suffering horrendous issues with credit in the past. I've worked hard to essentially maximise the rating and then in June, with one car on HP, it absolutely plummeted 

WillPS

Reduce the limit down (£1500-2000ish maybe) but keep the card if it's your oldest. Tesco allow you to have 2 cards at once so you're not blocking yourself from anything by keeping it open.

lr1277

If you do keep the card open but reduce it credit limit, remember to use the card say once a month, then pay it off in full. An unused can can be closed by the provider.

MEM62

Keep it.  Use it occasionally to keep it live.  

born_again

iamguyster said:

A couple of good points there. I'll check through purchases with it and see if anything might need a refund or charge back in the near future. 

I'm afraid I've been hung up on my credit rating after suffering horrendous issues with credit in the past. I've worked hard to essentially maximise the rating and then in June, with one car on HP, it absolutely plummeted 

Forget credit rating figure. It is a made up figure by the CRA, is never seen by lenders. What matters is your history (missed payments) & income to avaiable credit.

WYSPECIAL

Keep I keep it. You never know what offers they will make to get you to use it again.