Should I close my zero balance credit cards?

Just been having a look on my credit report. I have 2 credit cards with zero balance. I am currently using 9% of my available credit (excluding mortgage), is it wise to close my 2 zero balance credit cards, (I don't use them) or should I keep them, as to close them I would be using a lot more of my available credit.

The reason I ask is that I am looking to do a balance transfer to a 0% card of a balance of around £1000 I have on an MBNA card. So does it make a difference whether I settle the other cards or not. My thinking (which could be totally wrong) is that I may not get accepted for another credit card since I have so much credit available already.

Any advice would be appreciated. Cheers


  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    On the one hand you're only using 9% of your available credit, but on the other hand you could go out tomorrow and multiply your debt 11-fold!

    Lenders will look at this available credit, and perhaps also look at the number of 'active' accounts you have, and decide you have enough credit facilities.

    However, if you want to solicit anything other than a guess you'll probably have to divulge your income, other financial commitments, the cards you currently hold (because some are better than others for ongoing special offers) and their limits.
  • Frugaldom
    Frugaldom Posts: 6,941 Forumite
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    The way I understand it, it's best to write and cancel unused credit cards, but make sure it's not within any cashback period. For example, the 5% intro cashback offer on AmEx is lost if you close the account/cancel the card within 12 months of taking up the offer (as far as I know). If you have no further use for your extra cards and they can't offer you any extra benefits, like 0% credit or low cost balance transfers when needed, then I'd cancel if they were mine. Just my personal opinion and I hope it helps a little. :) I currently have 3 with zero balances but each has an advantage to keeping them open a while longer.
    I reserve the right not to spend.
    The less I spend, the more I can afford.

    Frugal living challenge - living on £4000 in 2024
  • Imani
    Imani Posts: 134 Forumite
    if you have loads of available or used credit it can pose a credit risk. however that depends on other factors.

    decide if you will need those cards again and will you need a credit card spare just in case?
    would love to be a home owner. hate private renting
    scared of debt. almost debt free.
  • savetospend
    thanks everyone, Ill have a think about it and decide.
  • sdooley
    sdooley Posts: 918 Forumite
    rather than applying for another card why don't you ring one of your existing card companies to ask if they'll do you a 0% balance transfer?
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