Should I close old paid off cards?

GeorgeRob

I know this is an old question, but I've found so many conflicting answers on these forums and online..

But basically, should I close any old credit cards that are all fully paid off? I'm about to apply for a mortgage so want to help my chances as much as poss. Even though our agreement in principal is £237k and we only need a mortgage of £182k, and my credit rating is good/above average nationally and in my area.

On one of my credit reports, it lists the only minus point as being that I don't have high limits on my credit cards. So this suggests it's best to keep them all open, and even increase the limits if possible? But also I don't want to damage my credit score by closing anything I shouldn't, or by increasing my Lloyds credit card limit if I shouldn't.

I have the following (all paid off):

Halifax platinum (was a 0% card) - £750 limit - about 5 yrs old

Halifax clarity (travel credit card) - £600 - about 5 yrs old

Barclaycard (was a 0% card) - £1000 - about 2 yrs old

Lloyds 0% card (actively using but currently 100% paid off) - £1000 - 6 months old

I also have a Halifax isa with nothing in it, a Nationwide Plus and a TSB plus current account both with nothing in them.

Should I be closing any of the above?

Thanks

flower77g

If you are about to apply for a mortgage, change nothing.

If it had been six months ago, I'd have suggested ringing Halifax and asking if they could move the unused credit limit on to a single card, and whether or not they agree, closing one of the Halifax cards. Also closing the unused current accounts.

GeorgeRob

Ok, I won't change anything then

After I get the mortgage though I'll look into doing the things you suggested. Thanks.

Kim_13

These services always have to find a negative/negatives to give you. If they are picking on your limits, it suggests that your file is in good order.

Providers would credit search to increase a limit, so do nothing now.

If not HTB, then I'd close the ISA - it's a savings account so it won't appear on your file anyway.

You mention a Nationwide Plus account - do you mean the Nationwide Flex Plus with all the insurances that's now £13 a month? If so and you have no use for them, I'd downgrade the account to a Flex Account, but don't make any change to your overdraft.

As the TSB Classic Plus has no account fee and pays 3% interest on up to £1,500, this one's worth keeping even in the long term for any spare cash that you can put there. You'll need online banking, paperless statements and £500 paid in per month (transferred in from another account and straight out again will do) should you build up some cash to earn interest on.

GeorgeRob

Kim_13 wrote: »

These services always have to find a negative/negatives to give you. If they are picking on your limits, it suggests that your file is in good order.

Providers would credit search to increase a limit, so do nothing now.

If not HTB, then I'd close the ISA - it's a savings account so it won't appear on your file anyway.

You mention a Nationwide Plus account - do you mean the Nationwide Flex Plus with all the insurances that's now £13 a month? If so and you have no use for them, I'd downgrade the account to a Flex Account, but don't make any change to your overdraft.

As the TSB Classic Plus has no account fee and pays 3% interest on up to £1,500, this one's worth keeping even in the long term for any spare cash that you can put there. You'll need online banking, paperless statements and £500 paid in per month (transferred in from another account and straight out again will do) should you build up some cash to earn interest on.

Thanks Kim!

Regarding the increasing credit limits - LLoyds sent me an email or letter (can't remember which) saying they are going to raise my card limit to £1750. So I presume there would not be a credit search with that, as its my existing card?

The Nationwide account isn't a paid one.. think it is just a Flex, yes.

One other thing - I opened a new current account with Halifax today so we can use it as a joint account for the mortgage and bills (and get the £125 switch fee!).. so that will be a credit search on my file before my mortgage application won't it? ;/

Unavoidable though really.

Marchitiello

If you are doing a joint mortgage some banks would have offered the option to open a joint current account with them as part of the mortgage (Barclays does that), so you could have avoided the separate credit search (too late now I guess ).

The Lloyds auto increase would have not resulted from a credit search but only been based on internal scoring and period credit files they get for existing account holders.

As others have said, try to do nothing else for a while until you mortgage is live.