The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: Linea_Norway on September 12, 2018, 12:17:38 AM
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Should I keep a credit card that I hardly use?
They let you choose each money what you want cashback on. Last year I always chose 3% cashback on groceries. This year they don't have groceries as a choice. They give cashback on things I seldom spend little money on, although I got a few % cashback on a plane ticket in June. They have a good travel insurance, covering your own share for rental car. But my DH has this same credit card. So, if I let him pay for travel, we should have that insurance anyway.
I now have a new credit card that gives 2% cashback on groceries, so that part is covered. I also have a petrol credit card. And a visa card of my normal bank account. I think my wallets starts being quite attractive for thieves to steal.
Do you keep your little used cashback credit cards in the hope that you occasionally have use for them? Or would you vote for ditching my card?
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I have a drawer full of cards that I'll probably never use again. Heard a rumor once that having a lot of credit increases my credit score.
Obviously, any card with fees gets cancelled as soon as I get the signup bonus!
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No real use in closing them other than if they have fees. After a certain amount of time the card company may close them automatically if unused.
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Keeping them open, used occasionally for small purchases, increases your available line of credit. Using very little of that available credit increases your credit score.
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Thanks, I will keep it and use it occasionally, when they have a good cash back discount type.
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I keep a Visa and a MasterCard, just so I still have a working card if one of the networks goes down.
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As a person who prefers things as streamlined as possible: If you have a deep credit history and a 760+ credit score, I would close it.