Cautious Brits stash unused credit cards

Millions of Brits have stashed away unused credit cards as a financial safety net, new research has discovered.

A poll by uSwitch.com found 16 million credit card holders with unused cards.

These consumers hold an average of 2.3 unused credit cards, and together they could access £200 billion of credit.

With unemployment above two million, keeping a credit card in reserve could seem like a sensible decision.

However, uSwitch.com warned that it has a negative impact on the holder’s credit rating, and makes them more vulnerable to credit card fraud.

“Overall it seems people are bombarded with conflicting opinions as to whether or not they should close credit card accounts that they no longer use,” said Louise Bond, uSwitch.com personal finance expert.

“In times of such financial turbulence, it’s hardly surprising that people don’t want to let go of what they consider to be a financial lifeline.”

However, she added: “There are several issues to consider as credit checks are influenced by the amount of credit available to spend.”

“So in effect, this lifeline could become a financial bottle neck to the next best deal.”

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