Negative impact on credit rating for lack of card usage?

Em_ster

I've just been going through my wallet and realised I have 4 cards, each taken out because of an appropriate offer (0% on purchases, £75 voucher bla bla) and each with a £0 balance. I use my Tesco one regularly to collect points and always pay it off in full before the interest hits.

I'm considering buying an M&S sofa and they have a 10 month 0% interest deal on their credit card that I'd like to take advantage of. Can't decide if it would it be prudent to get rid of some of the dormant ones before applying for another.......?

I don't know the pin numbers (never have) for 2 of them so can't use them in a store and never use them online. I have no affiliation to BHS, just wanted to save £30 on the cushions I happened to be buying at the time

Was thinking I should just keep the Tesco's one plus another in case I ever need a fallback. Plus I read elsewhere that having available credit (so 4 accounts with 0 balance but say £5k on each available to spend) can have a negative impact on your credit rating / you may find it harder to obtain credit with the other cards open.

Should I get rid or what?!

Poolie

If you do get rid of the old ones you should not that your credit file will not be updated immediately to show that these have been closed.

lisyloo

Personally I am all for getting rid of them

1) They are all a fraud hazard especially if you don't check hem regularly.
2) Having existing cards stops you getting "new customer" deals
3) They might slip in a "dormancy fee" at some point which you might not notice.
4) A high level of available credit may negatively affect your credit rating, but it does depend on your income. 4 is actually a very average number of cards and nothing to panic about, unless you income is well below average.

Personally I'd get rid of 2 but keep 2. However be aware that some companies internal procedures can take a month or two and then it takes up to one month to update the Credit reference agencies. This is not an instant process and you should allow 3 months.

If you want the sofa now and your income is reasonable and your credit ratng otherwise good, then personally, I wouldn't wait. I'd close the 2 and open the M&S card, otherwise you could be waiting for months.

Mozette

I've got 9 credit cards at the moment - got the latest in November 2009, so as long as your credit handling is good, I'd apply without worrying too much.

Apricot

I would get rid of two as you said and then your credit report will show a nice settled mark which makes lenders more confident. Your file won't be updated immediately & you will probably have no problem in getting another card but, as others have said having unused credit cards are a fraud risk & for me would be far too tempting!