Best to close Account?

yus786

Hi

I have a couple of credit cards with decent limits on them but was used to stooze and now no longer required.

Is it best to cancel the card? or reduce the credit limit and leave them?

Cheers

lynseync

From what I can work out by reading things online, and looking at the Equifax site, active accounts are better than settled accounts. Not 100% sure of this myself though, so best to see what anyone else has to say!

And it's also best to keep the credit limit as it is - if you reduce your credit limit, it reduces the amount of 'available' credit you have, and this apparently lowers your credit score. Creditors considering you always look better at you if you are using 50% or less of any credit limits you have....

CLAPTON

depends upon how many cards you have and your spending habits.

given the ability of our financial institution to make major computer muck ups, CC fraud and general disputes, I would wish to keep at least 4-5 cards currently active

InsideInsurance

It depends.... will always be the answer

What are you keeping them for? What are your plans for the future?

If you're thinking credit score then you are better with a couple of large credit limits with low utilisation than a mass of them or a load of low limits etc - though all lenders have their own "preferences" and so there are no universal rules.

Unless you see yourself needing them all then personally I would keep the top 2-3 limited ones (or one with the best rewards and 1-2 of the highest limits) and close the rest.

yus786

I don't want my credit limit to be messed up. Will be looking at getting Mortgage within 6 months

So what is the best cause of action for the Credit Limit to stay intact?

cancel or leave?