Should you cancel credit cards with zero balance?

[marleymooo]

We have quite a few credit cards with no balance on them, once the interest free period ends I normally pay it off and apply for another interest free. Should I cancel these cards and cut them up or leave them? Does it harm your credit rating having so many cards even though there's nothing on them? Are you more open to fraud with all these accounts?

Tia

I wonder about this too. Eventually the credit card company will cancel the card if there hasn't been any activity. I like having multiple cards in case there are issues with our everyday credit card, or if we are abroad when we use a different card and also take a back-up card.
I suppose if you have no intention of using the old cards again it would be best to cancel them.

I'm no expert - I don't even have a bank account but DH is fab with money and he does the same as you but he cancels them once they are paid off. Apparently this boosts his credit rating in some way or another and something to do with not having so many active products and paying things within the term etc etc.

It can affect the availability of credit in the future, as lenders may take into account the credit available to you, not just used, when applying for more.

I either cancel the credit card or in some cases I will drop the limit down quite low and then ask for it to be raised again if a deal comes along.

Cut them up.

I don't have credit cards any more as I feel they lure you into a sense of false security. However, this is a personal standpoint. I'm not working currently so am living off my savings. I also come from a family who eked things out during the war/post war years on the premise that "you don't buy what you can't afford". Harsh, but it has served me well.

When you apply for new ones, they will take into account the amount of credit you already have available, and might choose not to give you another if it is already 'enough'. Imagine if you suddenly decided to max out all the cards you already have - the new lender would be taking a big risk.

To an extent, according to my credit report, having cards with no debt on them is a good thing, apparently its good for your credit score if you're only using a small percentage of the credit available to you. Shows you don't run round maxing everything out. I imagine there's a limit to that.

Exactly what AMuminScotland said.
They count against you as they are available credit.
There's nothing to stop you maxing them all out tomorrow and lenders have to allow for that.

Lenders can't just cancel a card because you are not using it though. They may write to you after a certain period of time telling you they will close it unless you ask them not to but they can't cancel it without telling you first.

The other issue is the security risk of having so much credit available to you. It leaves you very open to fraud.

If you don't need a credit card you should cancel it.

Yes, close them...can affect your credit rating otherwise.

Thank you everyone will get them cancelled.

Having lots of available, unused credit is a good thing for your credit score, lenders see it as a positive so you should keep them.