Here are some alternatives to closing an unused credit card that can help you avoid potential downsides:
Request a Credit Limit Reduction
If you're concerned about overspending, ask your card issuer to reduce your credit limit, helping you manage your spending without closing the account.
Negotiate for No Annual Fees
If your card charges an annual fee, contact your issuer to request a fee waiver or ask for a more affordable option.
Use the Card Occasionally
To maintain your credit history and keep your credit utilisation ratio in check, make small purchases on your unused card every few months.
Convert the Card to a No-fee Option
Some issuers may allow you to switch to a no-fee version of the card, so you can keep it open without the additional cost.
Set Up Alerts for Inactivity
If you want to avoid forgetting about the card, set up reminders or alerts for occasional use, ensuring the card stays active without overspending.