close unused cards or keep them open?

danlightbulb

At the moment I have three credit cards. One with Tesco Bank, with nil balance, one with HSBC with nil balance and one with Barclaycard with £4.5k at 0% until Dec.

I was hoping to get another promotional offer from Tesco, but when I phoned them asking for this they said no offers were available for me.

Is there any benefit in keeping this account open? I am still thinking of consolidating my debts into a personal loan. But in any case I will need another 0% deal in 6 months.

Will I be better off in terms of credit score by closing unused accounts?

Thanks

YorkshireBoy

You'll almost certainly benefit by closing at least one, possibly two cards.

However, this will depend on the total limits, debt elsewhere, and your salary, which you've omitted to provide (and will mean you won't get good advice).

The only benefit to keeping the Tesco card would be the enhanced clubcard points if you're a collector?

danlightbulb

Tesco card limit £4k, HSBC gold card limit £5k, Barclaycard limit £6.5k, £4.5k balance at 0% until Dec.

I have a personal loan with HSBC, 33 months remaining, £6500 outstanding.

My salary is £36k.

I also have a mortgage in my name however do not actually pay this as I'm separated from my wife. I pay child maintenance.

I'm considering consolidating all my debts over 4 years, which is affordable, a total of around £11k with a new personal loan and then closing all my credit cards. however I'm aware I may not get accepted because of my current outstanding debt, despite the fact its for consolidation.

If I can't get the loan, I will need a new 0% CC by December.

Tesco said no offers available, am waiting on HSBC to reply to my online message. I'd like to keep one card open for emergencies, but don't need a high credit limit (but is it desirable to have high credit limit even if I don't need it?).

YorkshireBoy

Presumably the mortgage is shown on your credit report though?

In your position I'd definitely be closing two cards. However, it could bite you because if you can't then get either a loan or another card, you'll revert to your standard rate with anything outstanding with Barclaycard when the 0% expires and also not have the option of shuffling between providers as you may have now.

On balance, I still think I'd close them.

What do you think?