To keep unused credit cards open just in case?

[RealRedEagle]

Assuming a credit card has no annual fee, isn’t causing you any problems and you’re managing it responsibly, is there really much benefit to closing it?

My thinking has always been that you never know when an emergency might arise, you might need additional liquidity, a balance transfer opportunity appears, a large purchase comes up or your financial circumstances change. So I’ve generally been inclined to keep credit available even if I’m not actively using it. I know some people prefer to simplify things and close unused accounts, but I’ve always wondered whether that can sometimes be a bit short-sighted.

AIBU? Do you routinely close cards you no longer use?

For your credit score then having some credit available is seen as a good thing.

I have kept one card open and spend on it every months just to keep using some of the credit then pay it off

Definitely, you never know when an emergency could strike - makes sense to keep them open, maybe use one for a big purchase and pay it off immediately

I have unused ones. My credit utilisation is great, my credit score is happy

It wouldn't occur to me to cancel a card a rarely if ever use but there's no right or wrong answer. Do want suits you best, not sure why it's even something you need to actively decide

I've never cancelled unused cards, have occasionally had them cancelled by the provider if literally not used for years though. For this reason it's worth a couple of transactions occasionally just to keep them active.

We wanted to keep them active for a few reasons, 1 being credit rating, another being actual emergencies, and the other being sometimes for car rentals, or boat rentals, or holiday accommodation, you have to leave a security deposit, and it's easier to do this with a credit card than have a lump sum blocked on your actual bank account.

I have a credit card that’s unused. My partner tells me that I should close it down. I like knowing that I have it for “just in case”.

I keep them. Use occasionally.
I have around £30k credit line if I need it.

One of the biggest factors impacting your credit score is % of credit used (called your credit utilisation ratio). The lower the better therefore the more unused credit you have the better.

Reason being if you are routinely close to using up all your credit it suggests a riskier lending prospect - can you control your spending, are you too reliant on credit for your day to day, etc.

Therefore leaving cards open with credit that you don't use is a smart move for your credit score, as well as you say OP being good for emergencies etc.

I have more than 1 CC with no balance, just in case, but my credit score has told me recently that unused credit can be a negative factor. I think I'm going to start paying for petrol with them. I just need to remember the PIN numbers

That’s why I spend about £100 a month on my card but have it set up to clear the balance by DD every month so no actual debt builds up. Works well to just get enough for the credit score to be happy!