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

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

Author
Discussion

anarki

Original Poster:

760 posts

137 months

Tuesday 19th August 2014
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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?


anarki

Original Poster:

760 posts

137 months

Wednesday 20th August 2014
quotequote all
If its cleared monthly doesn't it still incur interest charges for the purchases made in the month?