Closing Credit card accounts

Dollymix12

I have been cleaning up my credit file with a view to buy a new house next year. 6 months ago I had a balance in each of my 2 credit cards of 6k and have paid one off in full and there is only just under 1k left on the other one.

I'm wondering what to do with the 2 cards? They both have limits of 7k so should I cancel one and reduce the limit on the other or just reduce the limit on both? Don't want to damage my credit file by doing the wrong thing

Nebulous2

I don't see that you need to do either. Some people here reckon it is a negative in your credit history if you have available credit of more than 50% of your annual salary. It is certainly not unusual to have two cards with the credit limit you have.

Closing accounts is also said to be a negative in some circumstances, particularly if they are older ones, as it reduces the average age of your accounts.

I'd use one, pay it in full every month, and use the other as a spare.

Dollymix12

I just thought having £14,000 of avalible credit would impact badly on trying to get a new mortgage, it's around 50% of my annual salary so I just want to do everything I can to make sure we are accepted for the highest amount we can get so we have more options,just thought these cards would affect that

Nebulous2

I can't see they'll make much difference. I have well over my salary in available credit and they keep throwing more at me. I'm not applying for a mortgage though.

Pay of your remaining debt, save as big a deposit as you can, demonstrate you are consistently living within your means and that will do far more for your prospects of getting a decent mortgage than fiddling about with credit limits.