RetireJapan

Is there any reason to keep my U.K. credit card?

Today I received notice from HSBC in the U.K. that because I haven’t used my Visa credit card with them for over a year, they won’t send me a new one when it expires and will close the credit account. Unless I tell them I still want it.

In the last ten years or so, I have only really used the card once a year to keep it ticking over. I have a 10,000 pound credit limit and I always liked having it in case of emergencies.

I have a current account with HSBC with a Visa debit card. I only really use this account for direct debits for student loan repayments and national insurance contributions as well as the occasional gift for family in the U.K. I have no intention of closing the current account. I don’t have any other accounts in the U.K.

In Japan, I have a solid emergency fund built up and have a credit card with the Post Office.

Is there any reason to keep the credit card? Is there anything you’d add to the list below?

Keep it:
Handy as a back up card in an emergency

Get rid of it:
I don’t need it
I don’t use it
I have a Visa debit card for U.K. purchases
I have a Visa card in Japan
Don’t need the credit score in the U.K. (and probably wouldn’t have much of one anyway from one small purchase a year)
Less of a security risk having an account doing nothing
If I did need to spend big in an emergency, the cost of paying it off would be more than using my emergency fund

I can’t really see any reason to keep it. Any thoughts on anything I’ve missed?

Only reason I kept a credit card while living in the U.K. was that it made hiring a car easier. There may be other things that are easier with a credit card, not sure.

Personally I would probably still keep it as an iron in the fire of U.K. finance when many such irons are hard to come by or being extinguished. Though it being with the same provider as your debit card diminishes that argument.

Might it keep your credit rating alive? Not entirely sure how they work in the UK, but it might be useful if you end up moving back at any point.

The UK has 3 credit reference agencies, and keeping decades of in good standing could be worth having.

It's also notoriously difficult to open accounts as a non-resident due to money-laundering regulations amongst other things, so there's another reason to keep it running.

I keep an old credit card alive, just in case. I used to use it for GBP purchases, and the annual visit back. But there was no trip last year, and all my income is yen now so I'd have to Transferwise or remove some old cash from an old ISA to pay it off. Now I just put the GBP purchases on a Japanese credit card too and avoid the need to pay it off in GBP. Anyway, I should probably make a purchase with it that I'd normally put on the Japanese card - just to avoid getting the same letter as you.

adamu wrote: ↑Thu Feb 18, 2021 4:02 pm keeping decades of in good standing could be worth having

Absolutely. A healthy credit score can be invaluable but takes a grindingly long time to build.

Edit: just noticed OP said he doesn't need a UK credit score, however I'd still keep it anyway. We never know what the future holds.

I keep my sole UK credit card still, despite leaving the UK in 2005.
It's a NatWest one.
Last time I was in the UK, in 2019, I changed my bank address to my sister's house, so any new cards will go to her in the future, and she can send them on to me. I have one of those NatWest card readers with me in Japan, should I need to use it for verification purposes.
I only use my NatWest account for student loan repayments (one payment left!) and my Class 2 NI contributions.
I don't see any downsides to keeping the account and credit card active.
Recently NatWest decreased my overdraft from 1500 quid to 500, which doesn't even bother me as I never use it anyways.
I would keep your card.

Thanks for your replies everyone. I have decided to keep it after all. You made some good points - I don't know the future, I may need it one day, it's no real hassle to keep it, it could be valuable for credit scores. Cheers.

Roger Van Zant wrote: ↑Wed Feb 24, 2021 7:12 am I keep my sole UK credit card still, despite leaving the UK in 2005.
It's a NatWest one.
Last time I was in the UK, in 2019, I changed my bank address to my sister's house, so any new cards will go to her in the future, and she can send them on to me. I have one of those NatWest card readers with me in Japan, should I need to use it for verification purposes.
I only use my NatWest account for student loan repayments (one payment left!) and my Class 2 NI contributions.
I don't see any downsides to keeping the account and credit card active.
Recently NatWest decreased my overdraft from 1500 quid to 500, which doesn't even bother me as I never use it anyways.
I would keep your card.

Was there a reason why they couldn’t send your cards to Japan?
I’ve managed to get the banks to send them direct here.

Bubblegun wrote: ↑Tue Mar 16, 2021 5:07 am

Roger Van Zant wrote: ↑Wed Feb 24, 2021 7:12 am I keep my sole UK credit card still, despite leaving the UK in 2005.
It's a NatWest one.
Last time I was in the UK, in 2019, I changed my bank address to my sister's house, so any new cards will go to her in the future, and she can send them on to me. I have one of those NatWest card readers with me in Japan, should I need to use it for verification purposes.
I only use my NatWest account for student loan repayments (one payment left!) and my Class 2 NI contributions.
I don't see any downsides to keeping the account and credit card active.
Recently NatWest decreased my overdraft from 1500 quid to 500, which doesn't even bother me as I never use it anyways.
I would keep your card.

Was there a reason why they couldn’t send your cards to Japan?
I’ve managed to get the banks to send them direct here.

I think it proved too much of a pain in the backside to arrange. It was easier just to have stuff redirected to my sister's house.

Roger Van Zant wrote: ↑Tue Mar 16, 2021 7:25 am

Bubblegun wrote: ↑Tue Mar 16, 2021 5:07 am

Roger Van Zant wrote: ↑Wed Feb 24, 2021 7:12 am I keep my sole UK credit card still, despite leaving the UK in 2005.
It's a NatWest one.
Last time I was in the UK, in 2019, I changed my bank address to my sister's house, so any new cards will go to her in the future, and she can send them on to me. I have one of those NatWest card readers with me in Japan, should I need to use it for verification purposes.
I only use my NatWest account for student loan repayments (one payment left!) and my Class 2 NI contributions.
I don't see any downsides to keeping the account and credit card active.
Recently NatWest decreased my overdraft from 1500 quid to 500, which doesn't even bother me as I never use it anyways.
I would keep your card.

Was there a reason why they couldn’t send your cards to Japan?
I’ve managed to get the banks to send them direct here.

I think it proved too much of a pain in the backside to arrange. It was easier just to have stuff redirected to my sister's house.

I can work with that.