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question about credit report

I accessed my credit report yesterday.

Currently I am using 62% of my available credit, I had planned to cancel one of my empty CC's (in the belief that having less available credit is good?) BUT, I read on the credit report that lenders look at how much % of your available credit you are using, and can view it negatively if you have a high % used?

Question is... should I cancel the card and lower my available credit? or leave it open and empty which will show a lower % used?

(only interested as I want to apply for a new 0% deal in 3 months time)
Thanks
£2 coin challenge = 50/250 (20% there)
Olympic challenge = 0.7% paid off
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