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

[johnny6]

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.

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.

Nationwide would seem to disagree with you. We are looking to get a our first mortgage soon and we asked the nationwide mortgage advisor if having 3 credit cards with zero balances would affect our application. He told us not to worry as they are only interested in the amount of debt we have and not the amount of available credit we have.

 

[Hellsmk2]

Set up a DD to pay it off in full every month, and use it for online purchases.

I don't even know my PIN anymore, but it is awesome for online purchases - protection of a CC, and full knowledge that it is paid of in full at the end of each month.

 

[TripleT]

Nationwide would seem to disagree with you. We are looking to get a our first mortgage soon and we asked the nationwide mortgage advisor if having 3 credit cards with zero balances would affect our application. He told us not to worry as they are only interested in the amount of debt we have and not the amount of available credit we have.

I've also been told that having credit available affects certain decisions. Just to prove that banker talk out their ****s in one way or another.

 

[platypus]

I've also been told that having credit available affects certain decisions. Just to prove that banker talk out their ****s in one way or another.

That and all lenders have different criteria.

 

[Russinating]

^ This. Plus two credit cards isn't exactly going to make a difference.

I've heard loads of things with regards to credit, such as total credit shouldn't be more than half your salary or other things. If true then all advice may or may not matter with a certain provider. I currently have more credit available than my salary was a whole and I got a letter last week doubling the limit on one of them.

 

[redeye_uk]

I always have about 500-800 outstanding on my credit card, but pay off about 1000pm. There is nothing wrong with having a small amount outstanding as long as you make your monthly payments. In fact, it probably counts in your favor.

I have a Tesco clubcard credit card thing. I turn all my points into air miles and is a great way of getting flight upgrades.

 

[alexakasloth]

I would say it's good to keep it for the protection you would have with online purchases.

 

[edgedemon]

I have a Tesco clubcard credit card thing. I turn all my points into air miles and is a great way of getting flight upgrades.

This +1
I have a tidy amount of miles now, saving for 2 flights to somewhere exotic

 

[Russinating]

If we're talking benefits then you can't beat American Express at the moment. Mainly with their Foursquare offers but also Selects and Xbox, as well as their standard Membership Rewards or Cash back.

I'm not a massive fan of Avios tbh. I've collected them for about 3 years now and have 65,000 points. It's enough to get quite far but what with it only covering the seat cost and not taxes you don't really save that much. Plus it's limited availability and not as easy to book.

The Amex Nectar card is good too but not AS good as it used to be as you can no longer convert Nectar points to Amazon vouchers.

 

[dowie]

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?

I don't see what advantages you'd have from keeping it if you're going to get a new 0% one.

 

[BurningHorizons]

Apply for new one. Once received, cancel the old one. Simple.

 

[<F0rb>]

..

 

[swillsy]

I recently closed all mine that had been on a zero balance because it means in 6 months you can take advantage of any 0% offers.