Should I Cancel Previous Cards?

MAPLE

Hi, I have around 5 credit cards 2 in use on 0% balance transfers. The others I balanced transferred from but have never closed. Should I close these and if I leave them open does it affect my credit rating?

GeorgeUK

It could affect your credit rating as the amount of credit you have available is part of their evaluation process. If you do not intend to use the cards again then i would close them, but if they have a good credit limit that you intend taking advantage of if they allow you another 0% then you may as well keep them.

MAPLE

Thank you Georgeuk. I guess the best way is to cancel in writing?

GeorgeUK

Yes - might want to check your T&C to see what they say, but usually a letter is all that's required. Send it recorded delivery and ask for written confirmation that it has been closed and marked as closed on your credit files. Sometimes handy to have that letter a few years down the line.

Spark

Some companies let you close the account on the phone. Just call them and said you want to close the account, if they want a letter sent they will tell you, otherwise if they do it on the spot ask them to send you a letter of confirmation of closure for the account.
I closed my MBNA card account on the spot by phone, it showed as closed when I logged in my online account 3 or 4 days later.

The_Boss

Do NOT close them all, it may well affect your ability to get credit

Zebedee69

I would close the ones you never realy use unless they have an offer running on them you could take advantage of. Sometimes threatening to cancel can make companies offer great deals like 0%.........

Ditch what you dont need as it will free up your credit rating a bit and keep what you need. I just canceled two cards before chrimbo as I wont be using them anymore.

The_Boss

Zebedee69 wrote: »

Ditch what you dont need as it will free up your credit rating a bit

No it wont

dave76

hmm, I am wondering about cleaning up my cards too. I have cleared all my cards now but would like to keep a couple for occasional use (NSPCC charity card and Cahoot gives me 15k credit limit which is more than enough for anybody!). I recently got a mortgage so that should be the last big credit check for a while hopefully.

Over the last 15 years of credit card use, balance transfers etc. that leaves me with the following dormant accounts -
natwest visa, about 10k limit
natwest mastercard, about 10k limit
hsbc visa, 3k limit (although just closed this one in the branch last week)
barclaycard, ? limit (maybe 1k)
halifax mastercard, 6k limit
LLoyds TSB, 2k limit maybe

Yes, thats a ridiculous amount of credit available to me! I have just moved house and would like to tidy up the fnincial side of things - I would like to close them but I guess there is no point if it will adversely affect my credit rating. Would it help to close one every few months maybe?

Zebedee69

The_Boss wrote: »

No it wont

Oh yes it does, are you suggesting that you keep every card you have ever had open? What happens when you have 20 cards open with £100,000 available credit?........ Tell me your joking mate realy this is a moneysaving forum not an old wives tale forum:rotfl:

If a company does a search and see's 5 cards open, 2 being used and 3 sitting there with no balance and a good few grand limit..... Are you saying they are not going to find that odd?.....

Cancel what you dont need and make sure its marked S for settled on your credit file. Its the only way ha ha!

Spark

From Equifax Credit Rating

Credit grantors prefer that you have at least one or two accounts as part of your credit profile. Active accounts are preferred to settled accounts.

So you can keep two or three and discard the rest.