Should I Close My Credit Card?

yeahyeah on 10/05/2024 - 10:42

Hi,

I'm a non credit card churner - i have a couple long term cards AMEX and a Citi (however long that lasts).

Earlier this year i applied for a Westpac Velocity - which i got the bonus for. I'm looking to get the HSBC Card soon and was wondering if i should close my Westpac card - I have no use for it, it has 0 balance.

Would having one less account on my file (and less credit) be a good thing? Would having an enquiry but not an account make it look like I was declined for the Westpac Card?

thanks!

Financial Credit Card

Comments

  • Duckie2hh on 10/05/2024 - 10:45
    +4

    I have no use for it

    If it doesn't impact your borrowing power and there are no fees, keep it open. Long history of use with payment on time (even though you have 0 balance) will be positive to your credit rating.

    • yeahyeah on 10/05/2024 - 12:17

      there are fees if i let it renew. My point is i have other cards with long history of use with payment on time, what do i need this new card for anymore if i'm just carrying extra credit

    • moar bargains on 10/05/2024 - 12:22

      It may not materially impact borrow power, but it will impact it (by definition). Especially since OP has other long term cards, it's not worth keeping it.

  • Fredfloresjr on 10/05/2024 - 10:48

    yeahyeah

  • payless69 on 10/05/2024 - 11:45
    -1

    I had a trade card on Masters Hardware. I had NO choice of who they were partnering with.

    After they folded Amex stole my credit rating WITHOUT my consent and posted me a gold card I never had asked for.

    2 years later they chased a debt collector after me to collect annual fees I never had agreed to but Amex just assumed they were God and had a right to.

    Lucky some ombudsman was still remembering the law and sided with me.

    Amex? Some Gerry H on steroids!!!!

    • geekcohen on 10/05/2024 - 11:54
      -1

      Cool story.

      • prodrome on 10/05/2024 - 13:41
        +2

        why be a dick about it?

  • moar bargains on 10/05/2024 - 12:19
    +3

    Yes. Close the card. If you only (or mostly) signed up for a card for the bonus and don't use it anymore, always best to close them. If you don't use one or more of the others, close them too.

    To answer your actual questions:

    Would having one less account on my file (and less credit) be a good thing?

    Yes, it's always good to have fewer credit cards (or lower total credit limit) if you're planning on applying for another one. Banks will look at the cards that you currently have open, and assume that you max them out every month and have to pay them back (at the minimum rate). That will affect how much extra they are willing to lend you. The more potential credit you already have, the less you'll be able to get from them. So it's always best to apply for the minimum credit limit that they offer or that will meet your needs, especially if you plan on churning.

    Would having an enquiry but not an account make it look like I was declined for the Westpac Card?

    The closed account will stay on your file for a while, along with the enquiry. Enquiries by themselves don't cause a problem unless there's lots of them in a short space of time. "Lots" and "short space of time" are deliberately vague (by the banks; not me).

  • Drakesy on 10/05/2024 - 13:29

    Yes close it and churn

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