Should I cancel my credit card under these circumstances?

Cal02848

Hello,

I had an AMEX Cashback Everday with a £15,000 limit. I manually changed the credit limit to £2,500 (long story) at the same time as taking out a new AMEX BA Premium card, again, with a £15,000 limit. 

My credit score has taken a really big dip across all CRA’s as a result of decreasing the limit. My question is, if I cancel the Cashback Everday card, would that be more damaging at this point in terms of my credit score? I don’t have any need for the Cashback card anymore. The account has only been open 3 years, so not terribly long. 

I was thinking either increase the limit back to £15,000 or just cancel it, but want to know what would be best in terms of credit score?

Many thanks 

retiredbanker1

Leave things as they are - nobody but you see the ''score''.

Brie

Your credit score is meaningless.  You are the only person that sees it.

What a bank will see is your credit history and they will see that you are behaving in a responsible way by reducing a credit limit that is unnecessarily high.  So cancel the card you don't need anymore.  And if you are paying in full every month that's another positive tick for you.

You may want to consider getting a different card in case of emergencies (assuming you don't have one already) that is not an Amex.  Not everyone will take Amex so a mastercard or visa would good.  Low limit possibly.  Just in case.  

eskbanker

Credit scores can be ignored, as they're fictitious numbers not seen by lenders, so calibrate the limits according to what you actually need the credit for, rather than trying to manipulate a number that nobody of any significance will see!