Cancel credit cards.. Yes or no?

[Saldawop]

Have read conflicting advice as to whether it's a good idea or not. I have 3 fairly new (less than 3 years old) cards with quite a high total limit, almost equal to my annual gross wage. My credit score hovers between fair and good. Does anybody know if it would make any difference if I ditched them. Still have a couple of cards that I have had for many years with more than enough of a limit.


Edit : all the cards currently have a zero balance

 

[Egg White]

My understanding is that its best to cancel them as that helps your credit rating...seem to recall reading this on Mse some years ago...

 

[Ste7en]

Cancel.

 

[Jowsey]

Believe the people are correct. The logic behind it being if you come to apply for new credit (to enjoy a 0% period or favorable foreign use fees etc.) they will look at you level of unused credit first to see if you could just use you're other cards first.

Obviously the banks like to see a healthy amount of use constantly as that means they get a steady stream of interest. But that could be the cynic in me...

 

[imightbewrong]

I often wonder about this - I've never cancelled one that I can remember and get offered more. No idea if it improves your credit rating to cancel - I'm sure I've read both ways. Cancelling is definitely good for going back to 'new customer' deals later.

 

[LV426]

I have several cards, some of which are used regularly, some of which are used only when I travel, and others which are just about never used. I have cancelled one or two over the years. According to Experian my score is 999/999.

 

[DPinBucks]

In general, keeping cards you never use is not a good idea. The more cards you have, the greater the chance that someone will hack one. Also, you are much less likely to monitor dormant cards.

If you don't use it, ditch it.

 

[mjn]

My remember many years ago (Egg i think) cancelling my credit card as I didn't use it!

 

[alphaomega16]

I tried cancelling my Barclaycard, harder than getting blood from a stone.

Still have it, dont use it. Had it ~15+ years.

 

[domtheone]

My understanding is that it's best to cancel any cards that are not used.

I normally have 4-5 (no negative affect on credit rating) but they all get used (more or less) in rotation.

 

[stuart07970]

Keep one - cancel the rest
Use it once in a while and always clear it in full

 

[sparkie1984]

I recently cancelled a card I've had for about 5 years and my credit rating has gone down!!!!

Ive looked into it and because it's long standing and now it's gone it's a negative impact.

I am amazed that the official advice from credit agencies it to clear them but leave them active. I thought I'd done so well closing it too

 

[sparkie1984]

I tried cancelling my Barclaycard, harder than getting blood from a stone.

Still have it, dont use it. Had it ~15+ years.

If you care about your rating don't close it!! See above

 

[Monty Nine]

Keep one that pays cash back.

Use it daily instead of cash.

Pay it off in full each month.

Free cash back!

And helps your credit rating?

 

[Mr Noble]

Keep one that pays cash back.

Use it daily instead of cash.

Pay it off in full each month.

Free cash back!

And helps your credit rating?

This, if none of your cards offer this ditch the 3 for 1 that does.

Apparently when choosing a new mortgage I was advised never to go above 70% of my annual wage in available credit. I closed down a few cards and my credit rating (which amounts to the square root of nothing really apparently in the scheme of things) increased by around 200 points in 3 months.

Yup it seems if you have credit and don't make use of it much it can start to affect things negatively.

 

[Peridot]

Credit rating is partly based on the percentage of available credit that you have used so having unused cards can improve your rating.

 

[imightbewrong]

So I think I can summarise:

Cancel them
Don't cancel them
Have lots of credit
Don't have lots of credit

 

[sparkie1984]

So I think I can summarise:

Cancel them
Don't cancel them
Have lots of credit
Don't have lots of credit

Yeah Basically.

You need to show history of good borrowing, but not have any credit borrowed. The more credit you have the better but whatever you do don't have too much credit.

Sounds about right for things in this country

 

[mh123]

About 15 years ago I paid off the balance on a Barclaycard but overestimated the interest due and ended up paying 82p more than the balance.

I then tried to cancel the card.

They would not cancel because of the positive 82p balance.

So I asked them to refund it.

"We can't do that unless it's at least £10"

So I asked them to donate it.

"We can't do that unless it's at least £10"

Me: "So how do I clear it?"

"Pay in another £9.18 and then call back to cancel and we'll refund or donate the £10"

So I asked them to reduce the credit limit to the lowest possible amount of £500 IIRC.

So every month for the last 15 years Barclaycard have been sending me a postal statement showing a positive balance of £0.82, and every 2-3 years a new bit of plastic arrives and is promptly shredded and binned, and so it shall be until they either a) realise what a waste of money and resources this is or b) I snuff it.

Idiots.

 

[LV426]

....82p...Idiots....

Whereas I'd have gone to Tesco (or somewhere) by now, and spent my 82p on something.

 

[Jowsey]

Whereas I'd have gone to Tesco (or somewhere) by now, and spent my 82p on something.

The true travesty is that 82p could have been 89p by now because of compound interest!

 

[imightbewrong]

If it's a contactless card just spend it

 

[alphaomega16]

About 15 years ago I paid off the balance on a Barclaycard but overestimated the interest due and ended up paying 82p more than the balance.

I then tried to cancel the card.

They would not cancel because of the positive 82p balance.

So I asked them to refund it.

"We can't do that unless it's at least £10"

So I asked them to donate it.

"We can't do that unless it's at least £10"

Me: "So how do I clear it?"

"Pay in another £9.18 and then call back to cancel and we'll refund or donate the £10"

So I asked them to reduce the credit limit to the lowest possible amount of £500 IIRC.

So every month for the last 15 years Barclaycard have been sending me a postal statement showing a positive balance of £0.82, and every 2-3 years a new bit of plastic arrives and is promptly shredded and binned, and so it shall be until they either a) realise what a waste of money and resources this is or b) I snuff it.

Idiots.

Mine is 82p as well lol, takes the **** that they still cannot cancel it because banks like getting free money.

Last time I purchased something it took me several months to clear it off and every time I paid the balance in full next month they would add interest on from the last month and it was just a cycle so I paid more than needed one time to cover the next one.

Wouldn't happen if they put interest on for what the amount was after your last payment instead of ignoring you have cleared the balance.

 

[alphaomega16]

Whereas I'd have gone to Tesco (or somewhere) by now, and spent my 82p on something.

Is there no minimum you have to spend, I was worried about starting the endless interest cycle all over again.

 

[alphaomega16]

Yeah Basically.

You need to show history of good borrowing, but not have any credit borrowed. The more credit you have the better but whatever you do don't have too much credit.

Sounds about right for things in this country

Funny thing is its easier to get a credit card than it is a ******* bank account, all I wanted to do was open an account with Lloyds Bank and I am surprised they didn't ask for a damn urine and poo sample whilst I was there.

All I want is a bank account to keep money in, why do you need to know how much ******* money I am earning, I ain't asking for a damn loan.