Should I cancel unused credit card accounts?

danjaq2004

Hi,

I have a few credit card accounts left over from previous balance transfers, they are £0 balance and I am not using them. Is it beneficial to cancel them / close the accounts or leave them open?

My credit rating is very good but I have heard differing information about unused accounts showing future lenders you've already got available credit which may affect them offering you new cards (again, tarting for more balance transfers).

Also, if you close an inactive and unused account down, then wait maybe 12 months or whatever, can you reapply for a card and get the 'new customer' promotional offers?

Thanks in advance!

andy1988

Hi,

After contacting several credit card companies myself I have been advised to close all credit cards that I'm not using as the total credit available to you can count against you getting a new card with a high credit limit.
PayPal advised me that it’ll take around 6 weeks for a cancellation to be registered on my credit profile and for other companies to see that I no longer have that credit available to me.

With regards to setting up with the same company, PayPal (GE Money) advised that I wait 6 months before reapplying to them and then I should be accepted with the 0% introductory offers (provided I met their criteria at the time), I don’t know if this applies to other CC companies but my sister was also able to get more introductory offers with Barclaycard after cancelling an existing card.

Someone else may have better advice, but I thought I'd pass on my experiences, hope they help.

Andy

jules73_2

It will effect the limit you will be given in the future, if you keep those cards running.

The sooner you cancel the cards, the better. There are various offers on other cards (e.g. AMEX, with cashback on purchases), that will reduce the amount of credit available to you. If you know what you are doing, it can be a much bigger advantage.

andy1988

jules73 wrote: »

If you know what you are doing, it can be a much bigger advantage.

Could you let me know how this is done please, or link to the advice page as I like any advantage I can get .

jules73_2

Not going over your limit would help Andy.;)

andy1988

jules73 wrote: »

Not going over your limit would help Andy.;)

Haha, I know, I'm blaming online banking for not updating quick enough :A!

I'm guessing you meant stoozing is the advantage (when done with utmost care )?

jules73_2

Well, stoozing is an advantage and knowing what's available to benefit from the offers on cards.

I'll PM you Andy