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To cancel or not cancel cards i don't use?

gradchris
Posts: 2 Newbie
in Credit cards
The dilemma I face is that when I have checked my credit file it scores you on how much available credit you have (among lots of other things of course) expressed as a percentage. It also said that having a low percentage was a good thing, but on the other hand having lots of available credit was not a good thing.
General advice is to close down credit accounts you do not use, but then if I do then I will be using up a vast majority of my existing credit, which I am in the process of paying off and I worry lenders may see this large percentage as a negative.
I have had a checkered past several years ago but I am on the mend and no longer need the sub-prime / progress style cards as I now have cards with my bank. What I do not want to do is cancel them if the cards still have a use for my credit file even though I do not use them any more day to day. I understand I will still get a mark on my file as account open and not in debt / default/ late with payments so maybe this can be better than closing them all together?
Not sure which is the best way to proceed with this, any help would be most appreciated
General advice is to close down credit accounts you do not use, but then if I do then I will be using up a vast majority of my existing credit, which I am in the process of paying off and I worry lenders may see this large percentage as a negative.
I have had a checkered past several years ago but I am on the mend and no longer need the sub-prime / progress style cards as I now have cards with my bank. What I do not want to do is cancel them if the cards still have a use for my credit file even though I do not use them any more day to day. I understand I will still get a mark on my file as account open and not in debt / default/ late with payments so maybe this can be better than closing them all together?
Not sure which is the best way to proceed with this, any help would be most appreciated
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Comments
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You are correct there is a balance to strike between being too maxed out and having too much credit.
One way to acheive a "half way house" is to reduce a credit limit rather than close a card.
Can you not do it gradually over time?0 -
never really thought of that if I am honest. I have plenty of time to sort it out which is why I wanted my cards to work for me rather than the other way round for once!
Sorry one more question, it doesn't matter who provides me with credit does it? A lender will not look at the financial institutions you have lent off in the past, or hold credit with and then not lend to you will they? As of course some lenders lend to riskier clients and it may put off a lender perhaps?
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When lenders search your credit file they can't see the names of the lenders with which you currently hold credit facilities.0
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Do you have multiple cards that you don't use and is there not a dormant fee on them. If you have more than one. Why don't you strike a balance between high amounts of available credit to highe percentage on useage by closing just one of the cards.0
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