To ditch old credit cards, or not ditch old credit cards? That is the question... The answer depends on which cards you have and what you might need credit for in the future. This is a Q&A guide on what to do with your dusty plastic.
It's difficult to know when you should cancel a card, and when you should keep one. It'll not only impact on the amount of credit available to you, but also on your credit rating. We list the pros & cons of both, and look at reasons to go and reasons to keep.
To ditch, or not ditch old credit cards? The answer depends on which cards you have and what you might need credit for in the future.
It'll not only impact on the amount of credit available to you, but also on your credit rating. This is a Q&A guide on what to do with your dusty plastic, including the pros & cons of keeping and cancelling.
Why not just keep them all?
Cancelling unused cards has two main benefits - especially if you think you'll need to apply and be accepted for the market's best credit card deals in future.
Is it worth keeping any old cards?
Despite the boons available from cancelling, this isn't a clear-cut issue. Hanging on to plastic you aren't making full use of right now can have its advantages too.
What does cancelling a card do for my credit rating?
There is no definitive answer to this. As we say right up-front in the credit scoring guide, different lenders are looking for different people.
How do I cancel a card properly?
There is a big confusion here, and the only way to dispel it is to shout loud...
Cutting up a card is NOT the same as cancelling!
Are any cards better to keep than others?
Whilst the very best deals are still reserved for new customers, existing customers can access good deals too. Some do this more than others. so it's worth knowing the right cards to keep your claws on.
What if I haven't got any debts?
The main focus of this Q&A has been how to retain access to good 'balance transfer' deals, to cut the interest you pay on existing debts. However, if these aren't an issue for you, it's likely the best credit cards for you come from a totally different range.
Have a gander at the following guides for which card is best for each type of purchase:
- Best Card for Spending
- Best Balance Transfers
- Best Cashback Card
- Best Card for Overseas Spending
- Cards to use to make free cash