% of Available Credit

JSPENCER

Hi Guys

Hoping you can help.

I currently have "Available Credit" of £15k (total credit allowance is £20k, with £5k on one card) spread across a number of cards. I only use the one card, it is a BT that is being paid off, none of the other cards are used.

My credit file says I'm currently benefitting from only having used 25% of my available credit, however I'd like to shut the old accounts down, which in turn will reduce my available credit.

If I keep the only account open that I use, I will have £5k used on a £6k limit, which looks like I'm spending 83% of my available credit, rather than the current 25% if I take into account all cards - so is it worth me keeping the other accounts open?

My credit score is currently very good, I don't want to potentially reduce it by closing accounts if I don't need to - however I'm not sure how this will affect me when it comes to applying for a mortgage, if they can see that I could potentially use £15k at any time, obviously a risk for them.

Thanks in advance for any advice.

[Deleted User]

You could perhaps shut one, especially if you are planning on applying for further credit. However, I would look to keep the % below 30%.

The ratio of limit to income is also something to consider.

Ignore your credit score - it doesn't reflect how lenders see you and will drop whenever you make a change such as opening or closing an account.