Keep or close down unused CC's?

kiwigirl

Merry Christmas to you all.

I normally use 2 CC (1 * cashback and other infrequently used), I have 3 store cards and 1 stooze card (exp Feb) and I have a few other cc's which I don't use.

All the cc's / sc get paid in full every month and I will pay off the stooze card in Feb and probably close this one down. I will probably close down one of the sc about the same time - currently got some good offers on it.

I'm relocating in Feb and I will rent for min 6 months then I may purchase a place of my own depending on prices. I will also be changing my mobile in March.

I assume that the changing of address will not help my credit record (I assume it's in good / very good state currently). I don't need any additional borrowing in the next 12 months, furniture will be bought on 0% from the shops or savings used. I may get another cashback card but nothing else.

Would it be better if I closed some of the unused cc now? Or would it be better if I kept them open?

Thanks

KG

johnny_c-l

It may be best to close down the unused ones if you will be applying for more credit. I can't see them affecting a mobile phone contract though.

However, if applying for another CC, then they may see these tens of thouhsands of pounds of unused credit, which could give them second thoughts.

HTH

Merry Christmas

jonesMUFCforever

Unless you get discounts for using the store cards I would close them down.
The interest rates are very high on these type of cards.

I think your plan of having a cashback card and one other as a stand by is a good one.

skybluesaver

I agree with above. Having alot of available credit will not only affect if you're accepted for a new credit card but will also affect the credit limit you may get.

kiwigirl

Hi All - hope you all had a good Christmas.

Thanks for your replies, first thing tomorrow I'll close down the cards I don't use. Majority of them have expired by looks of it anyway and they've not sent another card to replace it. Weren't getting enough money out of me I suppose!

I was intending to close down one of the store cards after the small amount of benefits I do get stop - always pay the cards in full so no interest charged anyway. Another one is stopping the benefits of that one too in a month or two so I might close that one and put everything on my cashback from there.

Just want to be able to have the option of getting a mortgage if I do see a place in about 6 - 9 months time and so the less credit I have the better I suppose.

KG

nearlyrich

The other consideration with applying for new cards on offers is that if you already have a card from that provider they will probably say no to another one. A good reason to close accounts you don't need anymore.

HugoSP

I would definitely close down the cards you don't need.

It gives you a cleaner slate to manage, and they don't need to administer them, besides you may be in a good position to take storecards/credit cards out again if there are deals.

Just make sure you don't close down any cashback cards premeturely - otherwise you could lose cashback

YorkshireBoy

As you're unlikely to check unused accounts online (as regularly as you do the active ones anyway), you're also unlikely to spot any fraudulent activity until you receive a statement through the post...many weeks later.

Unless they are known to give good offers from time to time, eg MBNA deals and fee-free days, then close 'em down. Then, a couple of months later, send for your credit reports to verify they've been marked as 'settled'.

The_Boss

I take it nobody in this thread has read my thread about how closing credit cards and reducing limits decimated my ability to get credit in future.

I suggest you all take a look before making a potentially bad mistake.

p1an0player

The_Boss wrote: »

I take it nobody in this thread has read my thread about how closing credit cards and reducing limits decimated my ability to get credit in future.

I suggest you all take a look before making a potentially bad mistake.

please can you link to it?

YorkshireBoy

p1an0player wrote: »

please can you link to it?

http://forums.moneysavingexpert.com/showthread.html?t=175234