Excess Credit

matt4504

Hey,

Just a quick question.

I have £17500 of credit but only use £5500 of it. Should I close the spare credit (two cards)? Does having a lot of spare credit have a negative impact on my records?

Thanks!

Matt

Ames

Credit records don't really work like that. They list what credit you've got and then when you apply for new credit the bank look at the list and decide based on their own criteria. Having so much spare could have a negative impact if you apply for something else because they'll see that as debt you could run up and so you'd struggle to pay them back. Or they could see it and think that you're responsible. Also, the ratio to what you earn will be taken into account, and how you've handled your credit in the past.

So basically, it's kind of a 'how long's a piece of string' question!

DarkConvict

Agree with the above, but, Spare credit in my opinion will do damage, as it chews into the ratio go your income vs credit already available.

If you are not using the accounts, and cannot see using them shortly I would have them closed. With less accounts there is probably a smaller risk fo fraud, you know in case a card get cloned and you dont check that account regularly.

Ames

On the other hand though, in the current climate the op may find it hard to get the same level of credit again if it's needed. I guess it depends how much credit the OP might want in future and in what form.

Percy1983

Unless you are planning on applying for more credit I wouldn't worry too much. As it is I have been cancelling credit cards as I have cleared them just for the satisfaction of saying 'f you' (not literally) to them.