Close cards to get a larger limit next year?

kiwigirl

I'm intending to get a younger car next year, but will probably have to get part of this on credit (hoping 0% BT), I have 3 cards and an overdraft which I don't use, would it be better if I close these down or reduce the credit so I will have less available credit next year or keep them open with no balance?

I'll probably looking for around the same amount of credit I have now to purchase the new car.

Any suggestions?

KG

cos_2

This is a tricky one, according to what I've read on these forums, because none of us knows precisely what the lenders are looking for when they accept you and give you a credit limit.

Just last week one of my CC providers reduced my limit from £4000 to £250 because I hadn't been using the card. However, they indicated they would welcome a call from me if I were to start using it again, and I presume that meant they'd reconsider the limit. The same may happen to you. (I closed the account, btw.)

Personally, I'd sit tight with what you have and wait to see what the CC co's do, and also if 0% BTs are still available next year. I suspect they'd still like to have you on their books as long as their risk remains low.

Just my opinion and not based on fact, remember!