Personal Finance

Should I cancel unused credit cards?

  • Last Updated:
  • Jun 17th, 2016 2:36 pm
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[OP]
Deal Addict
Apr 21, 2014
2263 posts
1018 upvotes
Alberta

Should I cancel unused credit cards?

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
9 replies
Member
Aug 3, 2013
488 posts
288 upvotes
Durham
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.
Banned
Mar 11, 2016
2081 posts
867 upvotes
get rid of all the others...pointless...keep it simple..
Jr. Member
Mar 11, 2009
159 posts
11 upvotes
Toronto
I will keep one with no annual fee with all the history - Oldest
Deal Expert
Aug 2, 2001
16747 posts
6971 upvotes
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.
Banned
Nov 29, 2015
1424 posts
522 upvotes
Brossard, QC
Just cancel those CC you don't use often. Make it simple!
Sr. Member
Mar 15, 2011
533 posts
171 upvotes
Toronto
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.
Sr. Member
May 22, 2004
601 posts
160 upvotes
Montreal
I'm strongly considering dumping Smart Cash as well, as it's basically been replaced by my Tangerine card.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.
Newbie
Feb 9, 2014
61 posts
18 upvotes
Montreal, QC
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.
Banned
Mar 11, 2016
2081 posts
867 upvotes
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...

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