Closing accounts once paid off

BeckyBloomwood_2

Firsly, I am so sorry, as I am sure this has been asked before, I just can't find the thread(s)
Anyway after paying off CCs or storecards, am I best to close them? Bearing in mind I would like to apply for a mortgage once I am CC free.
Should I just keep a little card open for credit check purposes? (350 limit)
I have just closed my Topshop account, they advised me to keep it open for emergenices?!!! ha ha. I love my clothes, but a Topshop emergency?!

learntmydebtlesson

Hi there

I have recently applied for a mortgage and was in the same situaiton as you, do I close them or keep them open?

Anyhow, I belive that it's good, from a credit score/report view, to have credit avaliable to you but too much credit is looked at as risky. So, I would advise that you leave open a credit card with the lowest limit on and close any other off.

Well done for paying them off!

I am sure more people will be on the way shortly to offer their advise.

Good luck!

kinkypixie

Hi,

I was also wondering the same thing and saw a thread that it improved your credit rating. I had 7 cards, so as I am paying them off I am cancelling them. I will of course keep 1 I expect!!

Good Luck!

BeckyBloomwood_2

learntmydebtlesson wrote: »

Well done for paying them off!

Thanks for your advice. Wish I had paid them all off, just a few little ones, but very proud of myself!

Snaggles

Because a lot of banks now share positive data, more and more are taking into account the overall credit that you have available - so I would be tempted to close down anything you are not using, maybe leaving one card open (for emergencies ).

LandyAndy

Is it worth using your card every so often for something you were going to buy anyway (say a tank of petrol) and then paying it off straight away? I know its putting temptation in people's way but I had a number of cards closed because I hadn't used them at all for some time.