Should I cancel old credit cards?

# The question Many people accumulate credit cards after switching rewards, using 0% balance transfers or taking welcome offers. When a card falls out of regular use, should you close it? The answer depends on what you want the card to do for you: legal protection, rewards value, a backup borrowing source, or credit-file health.

# Reasons to keep an old credit card

Using a credit card for larger purchases gives you legal protection under Section 75 of the Consumer Credit Act for purchases between £100 and £30,000. That protection lets the card provider be liable for refunds if something goes wrong with a purchase or service.

Even if you've already claimed a welcome bonus or moved to another rewards card, don't cancel before you've checked for unredeemed points or cashback. Some offers are tied to a card issuer rather than a specific branded card—for example certain American Express activatable deals or companion voucher conditions that require paying with an Amex card.

Emergency borrowing and short-term float A credit card can serve as a backup for unexpected costs. Cards give a short interest-free window between a purchase and payment posting, which can provide breathing room if you need it. If you think there's any chance you'll borrow on a card, keeping the one with the lowest APR reduces potential interest costs.

Practical requirements for travel and rentals Car hire companies and some hotels may require a credit card to place a hold for a security deposit or incidentals. Using a credit card avoids freezing funds in your bank account the way a debit-hold would.

Credit-file signals: account age and available limits Account longevity is a positive signal to lenders. Closing a very old account can shorten your average account age and may reduce your credit score. Similarly, a card with a large credit limit can demonstrate lenders' willingness to trust you with higher amounts, and keeping multiple accounts open can show you can manage more than one credit line.

If you've stopped using credit entirely, keeping one card open and using it for a small recurring expense can keep your file active without increasing new spending. Regular, manageable use signals ongoing credit management.

# What the article highlights about cancelling The article presents situations where keeping a card makes sense, but it also notes there is no single answer that fits every reader. Decisions depend on an individual's priorities—consumer protection, rewards, emergency readiness, travel needs, APRs, and the role a card plays on a credit report.

# Practical next steps

• Check for any unused rewards or cashback before closing a card. You may lose points if you cancel an account.
• Identify the oldest card and any card with a low APR or large credit limit before deciding whether to close it.
• Keep one card active for emergencies and for transactions that require credit rather than debit.

# Bottom line Cancelling an old credit card can have trade-offs. For many people, keeping at least one longstanding, low-cost card open preserves consumer protections and credit-file benefits while still letting you simplify the rest of your wallet.