Should I cancel or keep my old credit card after getting a new one?

illuSion on 25/07/2019 - 14:46

I planned to replace all my credit cards with new set of credit cards. I don't churn points, just sick of not getting enough reward.

I have had my Amex explorer and Coles master card for three years now. Also have another 28 degrees for int transaction. I have planned to replace these cards with St George Amplify Signature card for daily uses and Bankwest credit card for int transactions. My St George application has been approved, making me having 4 credit in total right now.

My question is, should I cancel or keep my Amex and Coles master card before I apply another credit card from Westbank? Which way is better for my credit score? I am currently on 900+ score with Veda.

Thank you for any input!

Financial Credit Card

Comments

  • holdenmg on 25/07/2019 - 15:11
    +1

    Yes, because if you bought something and it has a problem they may offer you a refund if it has issues.

    Having the Card (even if it has expired) is useful, because you can then establish why you want the refund to an alternate Card (often that is a different financial institution).

    Don't cut the Card up, just keep it somewhere, maybe with your Warranty and other stuff.

  • 87percent on 25/07/2019 - 15:11
    +1

    when i order a new CC, i keep it for about a month after i receive the new one to make sure that i sort out all my recurring payments

  • funnysht on 25/07/2019 - 15:29

    won't not cancelling affect your credit rating—or at least how much you can borrow if looking for a home loan.

  • [Deactivated] on 25/07/2019 - 16:18
    +1

    If the cards have an annual fee and you're not longer using them, you will want to cancel them before being charged another fee.

    There's going to be some debate about whether holding them will be good, bad or have nil effect on your credit score, but your score is high enough that I wouldn't worry. (In my experience have $0 balance credit cards has lead to increases in credit score)

    Though you may want to reduce the credit limit to their minimums before applying for any new cards, if you decide to hold them.

  • madreece on 25/07/2019 - 16:23
    +3

    I cancel them as soon as they have paid their bonus points. Usually at the two or three month mark depending on the bank.

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