Unused credit cards and credit rating

JayZed

I have two or three credit cards that I no longer use (got them for 0% deals that have expired). They all have a zero balance, with about £15-20K of available credit in total. I've never got around to cancelling these cards. I have a good credit record.

Does having unused credit make any difference to your credit scoring? Do lenders (mortgage and other ccs) perceive it as a good or bad thing, in terms of advancing credit to you? To put it simply, should I cancel these cards?

skyrider007

Having a large amount of unused credit may make potential lenders think that you already have enough access to credit facility and by granting you more credit may make you a riskier borrower. So if you're looking to apply for another CC I suggest you close down some of your dormant CC accounts with high limit.

Moggles_2

Unless a card has a particular benefit, then I would cancel. Firstly, having loads of credit, even if not used, can put off potential lenders and secondly, by cancelling a card you can re-apply to that provider as a 'new' customer and take advantage of any introductory deals on offer.

Another good reason for phoning customer services to cancel an unused card is that occasionally you're offered an incentive to stay

JayZed

Thanks for your input. I have now cancelled my Sainsbury cc and Barclaycard, freeing up more than £15,000 of unused credit facility. Neither provider made any attempt to keep me - probably because I took advantage of 0% deals but have never paid any interest,so don't make any money for them. Next up, I need to cancel my (unused) Egg Card (another £10,000 of credit limit, again took advantage of a 0% deal and never paid any interest), then I'll start applying for the latest deals.