Best to close old credit card accounts or not

guygamps

I have some credit card accounts, (at least two) originally opened to take advantage of balance transfer deals but now with zero balance, if I have no intention of using again (current balance transfer options are better eslewhere), should I close the account?

Thanks

GG

[Deleted User]

The answer, as always, is 'it depends'.

You need to keep an eye on your ratios of debts to limits, as well as limits to income. You don't want to look too over utilised or overloaded with credit.

guygamps

Very little balance on any credit cards, so ratio of debt to limit is very very good, thats the point, Ive got a few cards with zero balance on them, and don't know if I should close them or not.

I anything I have far too much credit available to me, so that being the case should I close a couple?

Nebulous2

Who knows? I've never been very good at closing accounts. For 20 years or so I've had limits well in excess of my salary. Generally with low or no balances. I went on a splurge before Christmas, applying for money transfers to stooze and got £30k very readily. I now have limits over twice my salary, with somewhere around 40% utilisation. The numbers from noddle and clearscore have taken a drop, but not as much as I expected.

So I can't tell you - but I'm very cynical of the view often put forward here that high limits frighten lenders. They're all chasing the same pool of people and if other lenders trust me then I think they may decide they should as well.

MallyGirl

I too have never had trouble getting further credit - another stoozer. However it would probably simplify your life to get rid of cards you are not going to use again - apart from anything else it can prevent access to a future juicy offer only available to new customers. I would suggest you consider keeping the longest held one as length of relationship with a provider counts as a positive factor. If it has a massively high limit then maybe keep but ask for the limit to be reduced.