What to do with credit card

[Cm17]

Hi all,
I have just paid off my credit card and not sure what to do with the card now?
I had no intentions of using it as I've had it for 6 years, it has a credit limit of £9500 at 9.9% apr

I did want to close the account once I paid it off but I've read this can actually harm your credit score which I don't really want to do...

So im slightly stuck on wether i should just close it down and it's gone as i dont want to use it again? Or would it be better to reduce the limit right down to like £1000 and just leave it there for a few months then close it? Or just reduce the limit and use it for things like fuel and pay it off each month?

Just after best advise on what to do that will be best for my credit score 👍

When you say balance I assume you mean credit limit? Keep it. Chuck it in your purse and forget about it. I’ve got numerous credit cards I’ve never used and never will but my credit score is great.

Personally, I would and did chop it up and have never had another one.

Are you talking about the credit limit or the balance? If it’s not a 0% card then the main thing to do will be to pay it off. If the balance has been cleared, then it’s always sensible to use a credit card for bigger purchases (£100 or over) for the consumer protection rights it offers. So use it for that, clear the balance in full every month and your credit score should be improved.

Just use it for convenience and pay off the balance fully every month, then you don't pay any interest.

Apologies, yes the credit limit (i have changed my original post)
I have paid it off so i now don't owe anything on the card.

You can freeze the card and stick it in a drawer and forget about it or close the account and shred the card.

I have around 8 CCs for various reasons, some with no balance on but have large limits if I ever needed to utilise it. I would always have the cash to repay it before spending on it though.

I kept mine having paid off £17k just over a year ago. I dropped the limit to £5k and only use it now for things that might benefit from Section 75 protection like holiday deposits and large purchases. I clear it every month though.

Keep it, if you definitely not going to run it up again!

Are you thinking of applying for any lending in the next 3 months? If so don’t do anything with it. If you are not applying for lending the best thing to do would be to close it down. I quite often reject lending because people have access to high external borrowing.

also if you don’t use the card the bank may close it on your behalf which will have a bigger effect on your credit score at a time you can’t control

Yes, this is a good idea - you can use it for all purchases and automatically pay it off in full every month.

It's useful to have a credit card available as you get enhanced customer protection, and for renting cars abroad etc. Using a credit card regularly for some proportion of the limit also increases your credit score.

I've hung onto mine although I don't use it regularly. It is useful though for larger purchases as you get additional consumer protection when you buy with a CC. Holidays, white goods, electronics etc should all be bought via CC and then paid off in full.

if you cannot trust yourself not to use a credit card then either close the account or at least make sure you put the physical card in a place you wont be able to access when you see temptation.

There is no rocket science needed for self control. I pay mine in full every month.

My cards reflect a time when I was earning very good money so I'd never get that sort of credit limit again. Thus, I retain them "just in case" but don't use them excessively because that has not arisen (yet). I have never paid a penny of interest on credit card balances in more than 25 years.
One card company has written to ask if I need it still as I had not spent on it for several years. I replied that I did and they sent a new card when the old one expired.