To keep (or not) an unused cleared credit card?

[anarki]

Hello and thanks for reading my predicament. Basically I'm not sure what to do regarding one of my credit cards which I can clear by November this year. Tempted to close the account but its a card with my bank so it has a lot of history (all good) on my credit file. It has a high APR rate but zero fees on forgein transactions so is great if going abroad on holiday.

My bank manager says keep it as its a good card for that one purpose and they don't offer it anymore.

I have an overdraft and a loan with them (loan also ends in November, wooo!) So by Christmas I'm completely in the black, with them.

Just one debt left - a balance transfer card I have with Halifax, currently resting at £1k to date, paying it off at £60 a month and will be cleared well before the 21 month interest free period ends.

Catch 22 as I want a good credit history but don't want dormant cards as I've heard that can be seen as a risk? Is this true?

[bad company]

I just went through the same dilemma & decided to close my Lloyds credit card. Can't see how it could improve my credit score as I had not used it for years.

[DocJock]

Use it as a sole purpose card.

All your motor expenses or all your grocery shopping for example, then clear it monthly.

[NNH]

DocJock said:

Use it as a sole purpose card.

All your motor expenses or all your grocery shopping for example, then clear it monthly.

+1
I worked in credit card 2010-2013, and this is good advice. Keep the balance below 25-50% of your credit limit.

[anarki]

If its cleared monthly doesn't it still incur interest charges for the purchases made in the month?

[XJSJohn]

anarki said:

If its cleared monthly doesn't it still incur interest charges for the purchases made in the month?

credit cards are usually intrest free for the first (???) 53 days, i.e. 30 days plus the time to send you the bill and a week to pay ... after that the interest starts ...

so if you were to use it for your petrol, and just pay each month, no interest and card kept active.

[K12beano]

anarki said:

My bank manager says ...

You have a Bank Manager??

I didn't think they even existed anymore / thought that was just folklore from people watching too much Mary Poppins....

[bad company]

K12beano said:

You have a Bank Manager??

I didn't think they even existed anymore / thought that was just folklore from people watching too much Mary Poppins....

I understand that all the branches have managers. Trouble is most of the 'Bank Managers' are actually spotty youths with some A levels and b****r all experience or authority.