Cancel or keep credit cards??

claire_n037

I currently have 4 different credit cards, 3 that have peen paid off in full.

I am going to be applying for a mortgage soon and am just wondering if I am better to cancel the 0 balance cards or keep them.

Will it affect my credit score as at the moment I am using a low percentage of my available credit which is a positive on my score.

Thank you

[Deleted User]

I'd keep at least two - assuming the combined limits aren't excessively high.

theweehighlander

Does anyone know if keeping credit cards with £0 balance has a negative effect on your credit score? I have finally just cleared one of my two and not sure whether to keep it or cancel it (It still has a loads of months 0% interest on purchase on it)

[Deleted User]

It depends on your available credit and income.

But I wouldn't drop to a single card.

Ebe_Scrooge

Keeping a card active with no balance on it doesn't have a negative impact on your credit score as such. But it may have an impact on your ability to apply for further credit - future lenders will see that you already have access to your credit limit on that card, and will factor that into their decision to lend you more.

It obviously depends on the limit on your card, in relation to how much more you're applying for. If your card limit is £500 and you apply for a £10,000 loan, it would have little bearing. But if your limit is £5000, and you apply for another £5000 loan, the lenders will assume a worst-case scenario whereby you max out the card as well - so they will look to see whether you can afford to service a £10,000 debt, not just the £5000 that you're asking them for.

theweehighlander

I will keep it aside for now then, thanks for the info!

I heard it was best to put a small amount on it each month and pay it in full also as it keeps your credit score going, which I might just do with it once iv cleared my other card!

drymartini64

I was using the MS checker for eligibility but it is not that good. It tells me I would not get a Vanquis card at all % wise. I have had one for three years and it is a crdit help card. SO how can I trust the checker.:(

The_Boss

theweehighlander wrote: »

Does anyone know if keeping credit cards with £0 balance has a negative effect on your credit score? I have finally just cleared one of my two and not sure whether to keep it or cancel it (It still has a loads of months 0% interest on purchase on it)

You don't have a credit score, so no negative effect as it doesn't exist.