Should I keep CC's open?

paddy29

I have a couple of credit cards left which will soon have 0 balances,, an Argos card with 0 balance, a mortgage and 2 mobile phone contracts. I don't have any other forms of credit as I have been closing everything down.

Just wondering if it is best to close the Argos card(limit £390) and Barclaycard(limit £900) or leave them open. I intend to keep my Halifax(limit £2000) open.

This is in regards to how it will look to other lenders if I am trying to get credit in the future, nothing else. Thanks in advance.

lisyloo

You should definitely keep a credit card as they offer valuable section 75 protection. If you rely on them abroad or for business then having more than one is a good idea.

Personally I am in favour of closing because
1) Every card is an id theft risk. Even if you keep your details safe there still on a computer systtem somewhere.
2) Fruad, theft is much harder to spot if you aren't monitoring statements.
3) Too much available credit can stop you getting more.
4) You could get a dormancy fee. You should be given notice of this but who reads those leaflets?
5) Can stop you getting new customer deals for 6/12 months.

how it will look to other lenders if I am trying to get credit in the future

It's impossible to know what lenders look for other than in vbery general terms.
But your old card history will stay on for 6 years so payment history will still be there.
Having less available credit can be a good thing.
Being too maxed out on the credit you have can be a bad thing.
It all needs to be taken in context.
If for example your new scenario left you with 95% of your credit being used then you could look like someone who's bad at managing their money, on the other hand if you have loads of credit you may look like someone who's in danger if they get more and then you would be declined.
I'm afriad lenders rules are secret so you have to use a bit of common sense on this.
Personally I am pro closing because I don't think anyone should expose themselve to id theft any more than they have to, but I also think you shoudl keep lines of credit you may neeed open and this mean 2 cards if you rely on them in anyway e.g. abroad or on business. So it's a bit of a trade-off where you have to use your common sense.

If you do not perceiv any need to use your card again even in an emergency then I would say close them, but don't leave yourself no credit in an emergency.
For me this means a minimum of 2 cards as I use them abroad.

paddy29

Thanks for the advice. I think I will just close the Barclaycard and the Argos then, I am never abroad so that isn't a concern. I also will have 0 balance on the Halifax card so % of credit used wont be a concern either.

What I am really looking to do is get into a position in 4 or 5 years of being able to pick and chose from the best mortgage rates with a 40% deposit basically. I will be using the Halifax card for some small purchases or where I need protection but paying it off in full each month.

matilda1_2

I closed my american express a month or so ago, to now find them doing a great cashback deals in shops, was so peed off, but thats life, they are doing like £5 cashback if you spend £5 in certain shops, garages, etc,etc and i also lost cashback earned because i closed the acount, something they never told me when closing it

lisyloo

being able to pick and chose from the best mortgage rates with a 40% deposit basically

Clean payment history, LTV (deposit), income are much more important factors here than how many credit cards you have.
They aren't really going to care whether you had 2 or 5 cards if you have a 40% deposit and have a clean credit history.
An easy way to keep a clean history is to pay credit cards by direct debit, this means you avoid slip ups in manual payments.

UsetheFORCE

I would suggest keeping open your longest running credit card...