CC Low limit - close or keep?

m-holland

Hi folks, 

Quick question. I have a Barclays and Vanquis CCs. Both with limits of £150.

No realistic expectation of it being raised due to being a full time carer. 

Would I be better just to close them?

cymruchris

If in the longer term future you see yourself ever getting a mortgage - it would be worth keeping them, using them, and paying them off in full if at all possible so that a positive credit history can be maintained. If you happen to be 70 years old, have a fully paid off house, and don't anticipate needing a credit card again, you could close them - there's no clearcut answer without more info.

Nasqueron

Do you anticipate working again?
Do you anticipate applying for credit in the future e.g. loan, mortgage, car contract etc?

If not, it's probably worth keeping one just in case e.g. a mastercard if your bank issues a visa debit card or the vanquis if you bank with barclays as you never know when your bank might go down or you need an emergency purchase

If you do believe your situation is likely to change, keep them and spend every month and pay in full and if you then return to work you might find the limit is increased to be useful

At the very least if you are doing a purchase that qualifies for S75 cover, even 1p on the credit card is worth doing