Need helping regarding 4 credit cards

lauralouise568

I really wanted to improve my credit rating, I had never had a credit card or loan or phone contract etc so I applied for 2 credit cards and got them, I always pay them off on time etc and got offered another 2 which I accepted.

I am now finding that I am only spending between £10-£50 on most of them. Some months I dont spend anything at all.

Is it best for me to cancel some and will it affect my credit score if some go unused some months?

I'm really confused as to what to do because I thought if I cancelled some, it may say to the lender I can't afford to have one when infact, I just dont spend enough on them

Please help.

Thanks in advance

StuC75

Credit Utilisation (how much your using of what is available) is difficult to weigh up since different people and therefore different lenders would have a different opinion on what is good.

What you can be certain of is making the payments and clearing off will always look to be good (remember all lenders out to make a profit so the customer that doesnt always pay off is more attractive to there business than someone who always pays off).

So in short your history counts for more than how many you have.. Check what the possible perks of each card is - eg Points, links to other offers? regular balance transfer deals? and maybe ditch any you no longer find suitable.

Are the cards with different lenders \ umbrella organisation - e.g. MBNA offer several, Halifax and there 'partners'..

The_Boss

Don't see a problem with keeping to be honest as long as they are repaid on time as you are doing.

What is your salary and what are the credit limits?

lauralouise568

Would it not affect my score if I cancelled a card? There is only one which has perks and thats points to spend in store at Chelsea FC. The cards are with Capital one, Barclaycard, MBNA and Argos.

My salary is about £18,000 and the limits in total add up to £5,100. A lot I know, but I do shop for family members online who aren't up to date with technology.

Thanks very much

Candles_by_Lisa

Could you not leave the accounts running but cut up the cards you don't want to use?

[Deleted User]

You've a fairly low total combined limit. You may want to just cancel the lowest limit one to tidy things up a little, assuming that doesn't give you any benefits. 3 cards should be enough for back ups etc.

But if you don't have any immediate need for more credit, you may as well keep them for security (in case any of them close you). But do use them occasionally, to prevent a dormancy closure.

lauralouise568

Candles_by_Lisa wrote: »

Could you not leave the accounts running but cut up the cards you don't want to use?

Ye I could do that but was just unsure if my credit rating would go down with them not being used.

YorkshireBoy

What are the individual credit limits?

And who do you bank with?

lauralouise568

I bank with Yorkshire Bank. There is £2,700, £1,100, £800 and £500.

YorkshireBoy

I was going to suggest keeping the one with your bank and one other.

But since you don't have a YB card I'd probably only keep Barclaycard and MBNA, and get rid of the others.

blackrosegul

Could you not leave the accounts running but cut up the cards you don't want to use???