Credit cards-cancel or reduce balances?

Stelladawn

Hi there,i have recently paid off my 2 credit cards in full. I am wondering whether to cancel them both or reduce the limits on them or would either of these actions reduce my credit score?

thenudeone

Depends on what you income, available credit, and used credit is.

You need some credit lines available (and used) to show that you can manage credit responsibly, so don't close everything.

Typically a good position might be:
Available credit max 50% of annual income.
Balance owed on credit: 25% of annual income

Although I have 100% and 50% respectively at the moment, all on 0%