Close an unused credit card and current account?

Ricochet J · 23 Dec 2015 at 13:07

Hello,

I have a dormant credit card and a dormant current account. Both are with different banks. Do I:

1) Keep the credit card in case of an emergency (I have emergency funds anyway) but close the current account.

2) Keep the credit card in case of an emergency (I have emergency funds anyway) and keep the current account open.

3) Close both credit card and current account since I don't need them.

Money Supermarket suggests:

Money Supermarket said:
It’s also a good idea to close any old credit card accounts before you apply for further credit. You might owe nothing on the cards, but the lender will look at all your available credit before it makes a decision on your application.

I may want to borrow in the future - acting now may pay dividends on the amount I can borrow later.

tom_e · 23 Dec 2015 at 13:10

Close both, no point in having an empty current account just hanging around and it takes all of 30 seconds to open one if you have a sudden need in the future and like the advice says any credit application takes into account the amount of credit used or otherwise you already have available so if you have no need for it get rid.

Freakbro · 23 Dec 2015 at 13:29

Don't just close your current a/c, use one of the switch and close offers from Halifax, First Direct etc and get your free money first (usually ~£100)

If you do the first direct one, then close that account within 12 months they'll pay you another £100

tlrBeta · 23 Dec 2015 at 13:56

Freakbro said:
Don't just close your current a/c, use one of the switch and close offers from Halifax, First Direct etc and get your free money first (usually ~£100)

If you do the first direct one, then close that account within 12 months they'll pay you another £100

He doesn't use it...hence it's dormant.

Close both, no point having credit against your name unused.

Freakbro · 23 Dec 2015 at 20:03

tlrBeta said:
He doesn't use it...hence it's dormant..

Doesn't matter, I've just done this with an account that's been open over 10 years and not used. I actually had to transfer £10 into it to do the switch

coolsurfer · 23 Dec 2015 at 21:03

Do you have another credit card that is not dormant? If not keep this credit card and use to pay for fuel/food shopping etc (ie stuff you routinely buy anyway). Set up direct debit so full amount is paid each month - this will look good on your credit rating (the fact you borrow and pay on time).

Close the unused current account if you have another one used regularly. It is of no benefit unless you are conducting business eg rental income.

kayomani · 25 Dec 2015 at 22:50

A dormant current account may have a small negative effect on credit score so close that. Keep the credit card if you don't have another one and use to get your rating up as above.

yozzer2001 · 25 Dec 2015 at 23:34

I have a credit card with a balance 0f -£7.16 , basically over paid but cut all my cards up years ago , just kept it open incase I ever need it

Rroff · 25 Dec 2015 at 23:40

I've had trouble closing some of my old accounts

after moving all the money out and "closing" them they've mysteriously reopened a month later or so with a few pence of interest paid into them and my bank who are normally helpful don't seem to be able to sort it :S so I've just left them sitting there with like 80p lol.

dowie · 25 Dec 2015 at 23:47

tis useful to have a spare credit card that isn't normally used - for example your wallet gets lost or stolen for example and you have to cancel your usual debit/credit cards you can use your spare one for a few days

you can always cancel it later if/when it might affect any other credit you're applying for

Werewolf · 26 Dec 2015 at 00:29

dowie said:
tis useful to have a spare credit card that isn't normally used - for example your wallet gets lost or stolen for example and you have to cancel your usual debit/credit cards you can use your spare one for a few days

you can always cancel it later if/when it might affect any other credit you're applying for

This

I have two credit cards, one is used mainlyin person, the other mainly online.
If one gets compromised I still have the other, and they both act as backups to my Debit card if needed.

russell664 · 26 Dec 2015 at 01:05

Personally, I would close them. No point ion having an account open if you simply do not use it.

craig_t · 26 Dec 2015 at 15:29

Keep the credit as a backup, close the current. Assuming you already have another credit card.

Energize · 26 Dec 2015 at 15:31

I never close accounts, always good to have a backup account in case something happens in my experience.