Should I close off some cards?

Dewi

Just over two years ago I returned from a foreign country. I had lived there 12 years. Not being savvy back then I removed my name from the electoral roll, and also closed down all my bank accounts. So .. when I returned two years ago I had absolutely no credit information. Anyway, I've managed to acquire this amount of credit in in those two years. Ordered in the order I acquired the cards.

Amex Blue (1800) - I still have an Amex from the country I moved to, and used that relationship to open a UK one.
HSBC (4000) - I bank with them, and my salary is paid into them. When I upgraded to HSBC Plus they offered me a credit card.
MBNA (4000) - Random application that succeeded
Barclaycard Simplicity (10000) - Recent application

SCS Creation finance loan for a sofa (4000) - Last week.

There is no balance on the credit cards (well there is 400 on the hsbc as a down payment of the sofa, but that will be paid off end of month).

Should I be closing down the higher interest accounts? All the accounts are standard APR for the products offered. I worry I have too much access to credit now. The long term plan is in about 2-3 years I want to buy a home. (Saving for down payment now). So when I arrive there, I want my "credit portfolio" to be top notch

milliemonster

What was your purpose in opening the MBNA and Barclaycard recently when you already have a card with a good balance that is currently not being used?

I would close down all of them apart from the HSBC that you are using and just keep that one.

Dewi

Purely to get as many accounts reporting as possible, to try to build breadth into the report (I have only two years depth

Of all the cards I think I would keep it would be the Barclaycard as it has low interest?

milliemonster

Yes but that one also has a very high limit, I think you would be better keeping a couple of the others, spending on them but making sure you pay them off every month, this way you will build up your credit rating again but not be paying any interest. The interest rate won't matter if you are paying them off every month.

Or you can keep the Barclaycard but ask them to reduce the credit limit

CLAPTON

four CC are fine .. its about the average

use them regularly for normal stuff and pay in full each month (set up a DD for the full amount so you never forget and never pay any interest)

NickX

milliemonster wrote: »

Or you can keep the Barclaycard but ask them to reduce the credit limit

I would not advise this. Barclaycard have given you a decent limit and this is a stepping stone for other lenders to match such a limit.

If you reduce the limit, there is no guarantee you can get that limit back and other providers will not know that the limit was reduced upon your request. If they see a nice £10,000 limit that has been managed well then they are far more likely to give you a similar limit.

I really do not understand people who voluntarily reduce limits. They are not "spending targets" and its nice to have the facility even if you do not use it to the full.

I agree with CLAPTON, 4 credit cards is not a problem, just continue to manage them well and you'll do well.

Dewi

Ok thanks all. My main worry is falling into the too much credit trap. Working up from a zero-credit profile two years ago has been hard work (All of the cards other than the HSBC had to go to underwriting before approval). Mortgage companies seem strict these days.

Moggles_2

Dewi wrote: »

My main worry is falling into the too much credit trap. Working up from a zero-credit profile two years ago has been hard work (All of the cards other than the HSBC had to go to underwriting before approval).

All the more reason to hang on to the four credit cards you now have, tbh