Should I cancel unused credit cards?

Jun 16th, 2016 12:34 pm

#1

abc123yyz [OP]: Deal Addict; Apr 21, 2014; 2319 posts; 1106 upvotes; Alberta

Jun 16th, 2016 12:34 pm

Hi everyone,

I am currently purging my credit cards and have decided to keep the following

1) MC - Capital One Aspire -120 annual fee, but grandfathered so effectively only $20 a year -> This is my most used card
2) MC - PC World Elite - no annual fee, used only for gas purchases at real Canadian superstore, and grocery at eligible stores (no frills, loblaws, real Canadian superstore, shoppers)
3) VISA - TD Aeroplan infinite - annual fee waived because I have an all inclusive account

So I have other cards that I want to get rid of. I have the MBNA smart Cash card which has a limit of 24k. In terms of credit score or access to financing is it better to cancel the cards I do not use?

Thanks

Jun 16th, 2016 12:41 pm

#2

suikoyen: Member; Aug 3, 2013; 488 posts; 289 upvotes; Durham

Jun 16th, 2016 12:41 pm

I would cancel the smart cash, as the aspire already functions as a 2% back card.

It doesn't hurt to have credit, but it may hurt to have too much credit.

Jun 16th, 2016 3:42 pm

#3

Fjr2005: Banned; Mar 11, 2016; 2081 posts; 893 upvotes

Jun 16th, 2016 3:42 pm

get rid of all the others...pointless...keep it simple..

Jun 16th, 2016 4:29 pm

#4

LWNTHK: Jr. Member; Mar 11, 2009; 189 posts; 20 upvotes; Toronto

Jun 16th, 2016 4:29 pm

I will keep one with no annual fee with all the history - Oldest

Jun 16th, 2016 10:50 pm

#5

TrevorK: Deal Expert; Aug 2, 2001; 18664 posts; 10058 upvotes

Jun 16th, 2016 10:50 pm

Cancel the ones you are not using, and are not planning to use. Don't fall for the hype about credit scores being damaged - it's just a proprietary number. Pay your bills as agreed to and you'll have no concerns.

Jun 16th, 2016 11:12 pm

#6

wxw2015: Banned; Nov 29, 2015; 1424 posts; 524 upvotes; Brossard, QC

Jun 16th, 2016 11:12 pm

Just cancel those CC you don't use often. Make it simple!

Jun 16th, 2016 11:54 pm

#7

GreenFinGirl: Sr. Member; Mar 15, 2011; 547 posts; 185 upvotes; Toronto

Jun 16th, 2016 11:54 pm

yes, cancel those you don't use, especially if they have a fee.

Best to keep the cards where you can actually use the rewards.

Jun 17th, 2016 12:23 am

#8

orakle22: Sr. Member; May 22, 2004; 736 posts; 489 upvotes; Montreal

Jun 17th, 2016 12:23 am

I'm strongly considering dumping Smart Cash as well, as it's basically been replaced by my Tangerine card. Only debate for me is whether to close my 2006 BMO MasterCard, which is my oldest. Maybe I can product change to their World Elite for a bonus before I do.

Jun 17th, 2016 9:00 am

#9

westaust: Newbie; Feb 9, 2014; 62 posts; 18 upvotes; Montreal, QC

Jun 17th, 2016 9:00 am

You could always apply for a new MBNA card, get the bonus points or promo rate (0%), transfer your limit from smartcash to new card and then cancel your smartcash. It's not an elimination of a card in your wallet, but you get to keep your credit limit and you get something in return.

Jun 17th, 2016 2:36 pm

#10

Fjr2005: Banned; Mar 11, 2016; 2081 posts; 893 upvotes

Jun 17th, 2016 2:36 pm

wxw2015 wrote: ↑Just cancel those CC you don't use often. Make it simple!

Yes...my personal and professional finance mantra for 25 yrs....keep it simple....helps my partial OCD brain sleep at night and allowed me to retire at age 47 debt free..no big windfall or inheritance...just saving my pennies...