To Keep or not to keep credit cards..

K-Lye

I've tried to find an article on this but haven't found anything yet so if someone knows of one, please point me in that direction. If not, here's the thought..

I've got a number of credit cards (3 or 4) which I'm not currently using. I've got a further 2 cards which I actively use for cashback and a balance transfer scheme.

I plan, over the next 12-18 months to do some heavy purchasing on credit cards and juggle the debt to get the best deals - ie. interest free purchasing, balance trasnfers, yada yada..

The question is, do I cancel the unused cards I have and re-apply when I need it or keep the unused ones I have attempt to negotiate with the card supplier for an offer.

Card suppliers have in the past offered me deals but I'm thinking given the current climate those deals currently won't be as lucrative as deals being offered to new customers.

I've got a fairly good credit rating so I'm not terribly concerned about getting new credit should I need it but knowing companies generally don't allow you to reapply for cards for 12 months, maybe I should get rid of these sharpish to take advantages of the best offers.

What do you reckon? :cool:

Phantom_Flan_Flinger

The general rule is to close unused cards.

When companies do a credit search on you, they'll see the 'available credit' you have because of the unused cards. This may not effect you getting a card, but it may effect the credit limit they offer you.

exel1966

Your best bet would be to call the companies of the cards you don't currently use and see what they will offer you. Threaten closure, you may get a better offer. Sometimes it works sometimes it doesn't. If they can't come up with something suitable then definatley close them all.

Your available credit is just as important (if not more important) as used credit when assessing your worthiness/credit limits in future applications.

Most cards permit you to reapply between 6-12 months after closure of the old. It will all depend on which card you want again. When you close the ones you don't use ask them how long before you can apply again and note it down.

The majority of cards will usually give better offers to new customers, there is no doubt about that. Some current cards give anniversary offers to their current customers. Check with them in case yours does.

Moggles_2

Another good reason for phoning customer services to cancel an unused card is that occasionally you're offered an incentive to stay