Unused Credit Cards
Discussion
This is one of those topics where there is no correct answer.
Some lenders might see your large available and unused credit as a risk; If they lend to you, you might max out everything and be unable to pay. Others may see it as a positive marker that you're restrained with your borrowing and could be a safe bet. Others still might turn away as you've got no balance so you're 'too safe' and they want a borrower who might need to pay a little interest.
My personal view is to cancel cards I have no use for just to keep my wallet empty and my life simple. I keep those with outstanding loyalty rewards, or those which offer perks such as free overseas spending which I might need in the future, but close other unused accounts.
Unless you have a specific card you're about to open and have some way of knowing the lending criteria for that bank, whatever you decide will have a negligible impact on your life.
Some lenders might see your large available and unused credit as a risk; If they lend to you, you might max out everything and be unable to pay. Others may see it as a positive marker that you're restrained with your borrowing and could be a safe bet. Others still might turn away as you've got no balance so you're 'too safe' and they want a borrower who might need to pay a little interest.
My personal view is to cancel cards I have no use for just to keep my wallet empty and my life simple. I keep those with outstanding loyalty rewards, or those which offer perks such as free overseas spending which I might need in the future, but close other unused accounts.
Unless you have a specific card you're about to open and have some way of knowing the lending criteria for that bank, whatever you decide will have a negligible impact on your life.
Based on my experience the credit agencies look favourably on long relationships even if you don’t use the credit facility, I have 3 or 4 cards with large limits that I don’t use but haven’t cancelled. We’re currently going through the mortgage process and none of the lenders have raised this a concern.
Sarnie said:
Keep them.
No lender negatively assesses any application due to the large credit availability you have, I don't know why people perpetuate that.
Sarnie - Are you referring to mortgages - I'm not likely to need a loan of any kind?No lender negatively assesses any application due to the large credit availability you have, I don't know why people perpetuate that.
I'm just thinking that IF ever a card with relevant benefits to me is launched, I was wondering if my application would
be turned down because of the large number of cards I have.
I can see no logic to lenders criteria: my wife and I have a 50/50 business partnership and all else is equal except that
my wife has an additional pension.
When we've applied for identical financial products in the pas,
it has been known for me to be accepted, but my wife the higher earner - has been rejected!
I had a couple that I never use with £10k credit limits and was frankly just keeping in case I needed access to emergency funding quickly. Fortunately never required. At the start of the Covid crisis the card issuers sent me a nice letter to pretty much say 'use them or lose them', or offering to cut the credit limit right back.
They did make the point that the more you have, the more you leave yourself open to the (small) risk of identity theft, which I suppose is true.
I was happy to give them up as I still have a Visa, a Mastercard and an Amex which I regularly thrash and clear each month, so I never pay any interest but like to have the availability of one of each.
They did make the point that the more you have, the more you leave yourself open to the (small) risk of identity theft, which I suppose is true.
I was happy to give them up as I still have a Visa, a Mastercard and an Amex which I regularly thrash and clear each month, so I never pay any interest but like to have the availability of one of each.
Elderly said:
Sarnie - Are you referring to mortgages - I'm not likely to need a loan of any kind?
I'm referring to any creditor that may need to assess you..............bank account, mobile phone contract, loans, PCP agreements, mortgages etc etc...........None of them will turn you down because you have numerous unused cards........if anything it adds depth to your credit file.......which may help you if you have no mortgage.....
) to make up for any lack of my own 
.Sarnie said:
I'm referring to any creditor that may need to assess you..............bank account, mobile phone contract, loans, PCP agreements, mortgages etc etc...........
None of them will turn you down because you have numerous unused cards........if anything it adds depth to your credit file.......which may help you if you have no mortgage.....
As a lender, I've never seen someone's credit file and thought you've got too much credit available to not lend. None of them will turn you down because you have numerous unused cards........if anything it adds depth to your credit file.......which may help you if you have no mortgage.....
PurpleTurtle said:
At the start of the Covid crisis the card issuers sent me a nice letter to pretty much say 'use them or lose them', or offering to cut the credit limit right back.
A few years ago one of the issuers of a card that I never used, wrote the same to me.I happily agreed to a very small credit limit and then sometimes used that card when on my travels to dodgy countries
(back in the day when you could travel
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