Zero balance catalogues and credit cards

altcant

Hi,

I got myself into a bit of a mess with money a few years back which I am happy to say I have now got myself out of. You may find some posts on here from me as I was on the way out of this mess.

When I was in trouble I had a couple of "bad credit" credit cards and some online store accounts which the balances of are now 0.

I now have a more mainstream credit card with better rates etc. that I use and pay off when I need to put something on a CC.

I'm trying to get my credit rating as healthy as possible for when I apply for a mortgage in a years time and have read that you should cancel these unused accounts as some lenders don't like you to have too much credit available.
However, these accounts are also some of the oldest credit accounts I have and I've also read that you lenders favour an older age of credit accounts.

So the question is do I cancel these or not? Do I cancel store account and credit cards? Or just one of them?

Thanks

Tixy

I would cancel any catalogue/ online store accounts you don't use.

If these cards have been open a lot longer than your mainstream card then it might be worth keeping one of the bad credit cards open if you are going to use it periodically (or regularly for that matter).

As long as you pay any purchases in full each statement then the interest rate being high wouldn't matter.
No point keeping them open if you are not going to use them at all.

altcant

Thanks a lot, I'll get the store accounts closed then.

I have a couple fo these bad cards so I may close one and keep the other open in case I do ever use it. If don't in months to come I'll close the other too.

Is it worth keeping the oldest open? Does the average age of credit accounts make a difference when applying for credit?