Should I cancel unused CC?

LazyWhippet · 25 April 2018 at 9:33AM

Hi all,

I got an Aqua credit card several years ago when I had adverse credit, it currently has a limit of £4k on it.

Since then, my situation and credit have considerably improved, I've worked very hard to improve it - even with a small CCJ (Dec 2013 ~£500), I have a mortgage now, as well as another two credit cards (Barclaycard and BA Amex).

Now that I have these two cards, I am no longer using my Aqua card - so would it be beneficial to close the account or keep it open for the sake of available credit?

[Deleted User] · 25 April 2018 at 9:39AM

You could keep it as a backup - it's only a small limit as you say - use it once in a while to keep it from going inactive and pay it off in full.

It will help your credit file with regards to the length of the account being opened

adindas · 25 April 2018 at 10:01AM

LazyWhippet wrote: »

Hi all,

I got an Aqua credit card several years ago when I had adverse credit, it currently has a limit of £4k on it.

Since then, my situation and credit have considerably improved, I've worked very hard to improve it - even with a small CCJ (Dec 2013 ~£500), I have a mortgage now, as well as another two credit cards (Barclaycard and BA Amex).

Now that I have these two cards, I am no longer using my Aqua card - so would it be beneficial to close the account or keep it open for the sake of available credit?

You should keep it as canceling it will not have meaningful impact on your credit worthiness anyway. Three is not many considering some peole on MSE have more than a dozen creditcards to be used for different purposes.

I wonder why you do not use your Aqua card as your maincard considering that this is the only card you have that will give you 0.5% cashback on any purchase. Moreover you could use it for purchase in foreign currency and you get one of the best exchnage rate + 0.5% cashback.

redux · 25 April 2018 at 10:53AM

If you haven't used it for some time, I'm surprised Aqua haven't written to you to either reduce the credit limit or close it.

I would say use it from time to time. Credit ratings, for what they are worth, may look better when using a lower proportion of the credit available, so having the facility and not overusing it might look better to some firms than not having it at all. But there may not be much difference. As Gary Dexter suggests though, the longest lived account may have some significance.

(next paragraph deleted, reason in post below)

adindas · 25 April 2018 at 11:15AM

redux wrote: »

I disagree with the above post about using it for cash advance abroad. Even if it is one of their cards with zero currency loading and ½% cashback (not all Aqua versions are), interest runs on cash advances straight away.

If you read my post carefully, I was suggesting for purchase not suggesting to withdraw cash from ATM (cash advance) in foreign currency. For purchase there is no interest to be paid if the balance is cleared each month.

From all credicards that OP have Aqua card is the best option for purchase in foreign curreny + cashback. There is no indication that the Barclaycard that OP has is Barclaycard Platinum travel.

destroycarthage · 25 April 2018 at 10:13PM

Keep it open. It's available credit. More credit history. Only reason I'd close it is if you have an annual fee.

Should I cancel unused CC?

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