acampbel said:Yes you are right - I do not understand.
I have immediate access to $50K of credit card funds (not counting the corporate Amex) which in an average month is 10 times what I need. My credit report will have exactly 2 entries in it .... one for the dead NAB card and one for the Citibank replacement. Assuming I apply for more credit in the near future (which I don't need) I doubt whether having an entry for a card I have ditched will make any difference whatsoever. Especially since in the current climate of new cards and loyalty programmes there is a high level of churn.
OK - Here is one possible scenario:
NAB Brings out a super fantastic new credit card.
If you keep your existing card with no fee, then you can simply fill in a form and change your existing card (which you don't use) to the new card.
Simple process. No credit check entry on your credit report.
If you had of cancelled, your card, not only does it take longer to get the new card, it also puts a new credit entry on your credit file.
Whilst it seems an extra credit enquiry on your file doesnt really matter, it is usually still better to keep the credit enquiries to a minimum. Especially if for some reason you need to have a lot of credit enquiries done on you in the future (eg. you open a business).