If you've paid off your credit cards do you still keep them?

[womaninatightspot]

Cleared my overdraft (happy dance) and my credit card (extra happy dance) It's less than 4k but when they were maxed out it was costing me nearly 100 quid a month in interest.

Tempted to cancel them and live within my means hopefully concerned about emergencies though.

Yes, for purchases that might benefit from credit card protection and if I know I’ll pay it off at the right time.

I also have zero interest ones that I use for furniture etc and they are paid off before the end of the term via direct debit.

I’ve kept mine as it is good for your credit score to have the accounts open even if you don’t use them.

Yes for things like holidays. I will book on my credit card and then pay it all off a few weeks later.

Also handy if you ever have something disastrous happen like the boiler breaking down and you don’t have enough in savings

Sometimes it is useful to be able to use a credit card in emergencies. I have paid mine off now but set the direct debit to pay in full every month so I still use it for online shopping as it feels safer than using my debit card.

I’ve just kept one and try to keep a small balance and don’t use it if I can help it as it can go up so quick!

yes. keep one of them.
for emergencies or better deals.
ideally pay off in full monthly or within a couple of months to avoid paying much interest.

I’ve just cleared my second one and I’m not going to keep it. Credit is a real downfall for me and I’ve decided I’m not going to have any at all. DH is eminently sensible with money/credit so he has one and if I need purchase protection I’ll use his. We also have savings so we don’t need credit for emergencies.

Yes keep them. You have to have active revolving credit and occasionally use it & pay it off to keep your credit report looking good.

Don’t cancel them and deliberately use them now and then for something you have saved up for and then pay them off in a month before any interest is charged.

Creditworthiness and the rate they offer you on bigger loans...ie a mortgage... is based not just on how much or little debt you have but also ongoing demonstrated ability to use and successfully manage credit.

Yup. As PP says for larger purchases and emergencies. I’ve got half my credit limit on mine atm but the past few years have been a struggle so it’s needed for emergencies atm. I’m paying it off but monthly, but I don’t know how I would have survived lockdown without it tbh.

Yes if you need a good credit rating for mortgage etc it’s good to keep it (as long as you’re not like me with credit - a child in a sweet shop). We have no need to consider mortgages.

Yes, it’s good for your credit score if you have available credit that you don’t use.
I have approx £40k in unused available credit!

I have a mortgage already on a cheap fixed rate but I hear you about credit scores. I get points/ amazon vouchers on one so will try using it for everyday internet shopping and set dd to pay in full monthly. The other one I took out through my bank as it had a long 0% period (18 months) which has now ended but I could use it for odd big purchase to keep it going.

If you have 40K in unused credit do you have lots of cards or really big limits?

If you have 40K in unused credit do you have lots of cards or really big limits?

I have 3 cards, one £10k limit and two £15k. The problem is they keep putting the limits up (I assume to entice me to use them) and I forget to decline.

We no longer have credit cards

Wow I use my credit card to pay for so many things - food shop, online purchases, even coffees of late (COVID). Is that unusual? I paybitboff in full every month, always have, but I get Amazon vouchers on my card so it's better to use it than switch. Also yy to credit card protection.

So yes, keep it/them.

I keep one for emergencies. We use DH’s Amex more as it has cashback but some places don’t take it. It was handy to have my card when we were carpeting a new build and they didn’t take Amex.

For emergencies yeah

most things go on the credit card and it is always paid off in full each month. I've never used the credit due to the colossal interest charge, although I was younger in better times when things were different. But it does allow you to buy something you can't afford, which is handy if you really need that something.

I have a Barclaycard reward and get points for vouchers, now need something from Argos and can get £30 off it.

I've had to depend on mine to survive when I couldn't work so I keep them just in case.

I wondered about credit score though. Spread across six cards I have a £50k limit. There is no way I could service that amount of debt so surely it would reduce a credit score?

Yes, absolutely. I think I've only ever not paid the full balance once or twice, when spreading furniture payments over 2-3 months after house moves. It's nice when you're too far from payday but you need to make a purchase for whatever reason.

Also - chargeback. Well worth putting any expensive purchases on a credit card in case you need to request a refund and the company aren't cooperating. We ended up doing a credit card chargeback for our covid-cancelled holiday when the travel company continued to fail to respond over six months later.

I recently paid off my credit card but wouldn't dream of getting rid of it. It's handy to have one.

Yes, I've got several and never actually used them as borrowings. I've paid them off in full every month ever since I got them 30+ years ago. (well once about 30 odd years ago I couldn't pay it off and spread it over 3 months!).

The buyer protection is worthwhile, as are the cash backs. In years gone by, there used to be other "benefits" such as accumulating points to "buy" things from a catalogue, a bit like the modern day Nectar cards.

I only use a debit card for small daily spendings, i.e. lunch, and always use a credit card for supermarket shopping, holidays/flights, admission fees, etc. Pay it off in full every month.

@clary

Wow I use my credit card to pay for so many things - food shop, online purchases, even coffees of late (COVID). Is that unusual? I paybitboff in full every month, always have, but I get Amazon vouchers on my card so it's better to use it than switch. Also yy to credit card protection.

So yes, keep it/them.

Not unusual, just a different way of organising your finances. Lots of people do this.

Yes. I use then for shopping on-line and emergencies.
I transfer the money over to pay it off as I go.