Credit card - All paid off. Do i shut it down?

SideWinder · 6 Apr 2013 at 14:42

I will finally be paying off my credit card in the next few days. A part of me is tempted to shut it down now the 0% interest thingy has been and gone.

Would this be a good idea with regards to my credit rating? Or is it best to keep it and simply not use it? Or shut it down and apply for a new one so i can benefit from the 0% interest?

PapaLazaru · 6 Apr 2013 at 14:43

Keep it. The protection it can offer whilst shopping online is better than using a debit card.

SideWinder · 6 Apr 2013 at 14:44

PapaLazaru said:
Keep it. The protection it can offer whilst shopping online is better than using a debit card.

I will always have a credit but i was wondering what the benefits are to keeping my first and 'only' credit card rather than starting afresh with a new one.

HungryHippos · 6 Apr 2013 at 14:52

Keep it, ring your CC company and ask them to change the Direct Debit to take the Max Payment each month. You can then use it to build up some credit history without worrying about building up any fees.

As others said it's good for on-line purchases, and for getting some credit history going.

Deleted member 77746 · 6 Apr 2013 at 14:56

Personally I would close it but this is just me.

panyan · 6 Apr 2013 at 14:58

Eulogy said:
ring your CC company and ask them to change the Direct Debit to take the Max Payment each month

this is what i do with all my cc cards

neodude · 6 Apr 2013 at 14:59

panyan said:
this is what i do with all my cc cards

Me too. You can usually set this up online.

asim18 · 6 Apr 2013 at 15:00

panyan said:
this is what i do with all my cc cards

You do that with the credit card card just like you do with the personal identification number number?

dowie · 6 Apr 2013 at 15:06

don't see why you'd want to keep it if you're getting a new 0% one

SideWinder · 6 Apr 2013 at 15:10

dowie said:
don't see why you'd want to keep it if you're getting a new 0% one

Well this is what i am trying to establish - whether it is worth keeping my current one or getting a new one...is the only difference going to be the fact i can take advantage of a 0% offer?

Russinating · 6 Apr 2013 at 15:12

It won't particularly affect your credit rating negatively by keeping it so...

Ekim · 6 Apr 2013 at 15:15

SideWinder said:
Well this is what i am trying to establish - whether it is worth keeping my current one or getting a new one...is the only difference going to be the fact i can take advantage of a 0% offer?

Depends on how you are planning on using your card. If you pay it off in full each month you won't be charged any interest. If you are planning on making a big purchase and want to pay it back over multiple months you'd be better off getting a new card with 0% offer.

holymonk · 6 Apr 2013 at 15:24

Keep it, but don't use it.

Always handy in an emergency and your bank may call or offer you a promotion if they see its not being used.

Ripjaw · 6 Apr 2013 at 15:44

Burn it with a ritualistic ceremony and be rid of such evil!

Soundood · 6 Apr 2013 at 16:08

no keep it, buy everything on it, settle it all each month, when it comes to mortgage time this will be very handy, trust me.

Third Opinion · 6 Apr 2013 at 16:24

holymonk said:
Keep it, but don't use it.

Always handy in an emergency and your bank may call or offer you a promotion if they see its not being used.

Emergency use is the best thing about them.

Handy also when hiring cars etc, some people insist on a Credit card.

My credit is pretty screwed from my business going down. I have a pre-paid card and you are so restricted. I cannot hire cars, pay certain things or book flights with certain airlines. It is a complete pain in the butt, you seem to need credit to survive nowadays.

Marky · 6 Apr 2013 at 16:31

Just keep it, and use it every so often and pay it off immediately. This is what I do

Keeps your rating sweet

Weazle · 7 Apr 2013 at 03:05

The main question is are you ever going to use your card ever again?

If the answer is "no" then you should cancel in writing as it boosts your credit rating by decreasing your available credit. This is very handy for applying for mortgages, etc.

If the answer is "yes" then buying stuff on it and paying it off monthly builds a credit history. This is also very handy for applying for further credit cards, loans, etc as it shows that your are paying off your debts which increases your credit rating.

The worst thing you can do with it is to do nothing with your card if you already have an another credit card that you use for purchases.

Bromhead · 7 Apr 2013 at 04:34

As others have said, set direct debit up so it's always paid off fully automatically each month. I use mine for most purchases like a normal card, it's paid off each month, no interest

BlackAle · 7 Apr 2013 at 05:16

I tend to use my CC whenever I can, get 1% cashback. I always pay it off in full each month. It makes more sense for me to use a CC than a debit card.