Close account that is paid off

Sncjw

Hi all

Should I close a credit card account that is paid off and will attract interest if I I use it. I have m and s card and a lloyds card that are both paid off 

I have two card that have a balance on with 0 percent deals needing next year which will be paid off then


M and s 6k limit
Lloyyds 7.5k limit
Halifax clarity 4k limit which I will keep as travel card back up

Barclaycard rewards 5k limit but currently has a balance on and will keep once cleared due to travel benefits 

Hsbc card 8k limit and currently has a balance on and probably not use in future do to attracting interest after dealing ends. 

This gives 30.5k limit across the cards. My husband I intend to save up for things once the cards are paid off. But would like a card as a back up.

Husband has a Barclaycard rewards for travel as well didn't want to mix the money transfer deal and travel spends on the one card so he got one for when we were travelling..

So should I close them if I am not going to use them..would it make it more. Attractive to getting future 0 percent deals? 

Thank you 

CliveOfIndia

In terms of your credit history, it's always a bit of a toss-up.  On the one hand, a long-standing and well-managed line of credit reflects favourably on your history.  But on the flip side, having huge amounts of credit available (even if unused) can start to make lenders a bit jittery.

Each lender will take a different view and will have different criteria, so it's very difficult to give concrete advice on what's best for your particular situation.

But if you're really not going to use the cards again then you may as well close them.  Lenders will close unused accounts anyway after about a couple of years of dormancy (assuming there's no outstanding balance).

Sncjw said:

Should I close a credit card account that is paid off and will attract interest if I I use it.

Does the card give you any rewards (cashback, points, airmiles, whatever) that are of value to you?  If so, you may want to continue using it.  You won't pay any interest so long as you always clear the balance in full every month.  But that's only really a consideration if the rewards (if any) are of value to you.  Airmiles, for instance, are not much good if you never (or only very rarely) fly anywhere.

MEM62

Sncjw said:

Should I close a credit card account that is paid off and will attract interest if I I use it.  

Remember that interest is only charged if you use it and do not pay the balance in full by the due date.  A credit card is actually a very useful financial tool to have.  

born_again

TBH, if not using it, then it will go dormant after so long & could get closed by the bank.
Unused accounts are a security risk, as people stop checking them.

So if you have no plans to use it, then just close it down.