Credit cards/credit score

LINNYB

I've just been accepted for a 0% balance transfer card and have cleared my Barclaycard with it. I also have two other credit cards (one is a closed account in order to keep a low APR, and one is an open account). This means that there are now four credit cards on my credit file. In terms of maintaining my (good) credit score, would it be best to hang on to all of the open cards (therefore showing that I owe a low percentage of my available credit card limits), or would it be best to close the Barclaycard (which I currently zero on but has high available credit limit)?

Thanks

[Deleted User]

Always ignore your credit score and never take action based on it.

What are your total limits, balances and income? The is what lenders will be looking at, as well as your history.

Kim_13

You mention a closed account to keep a low APR. It sounds as though this is still open, but that it has been paid off. If you think you won't be tempted to spend unnecessarily on it, then I would be minded to keep it for emergencies.

Do you use any of the current accounts offering interest and rewards at all? If you do, or think that you might want to in the future, seldom used credit cards can prove useful to put an item or two on a month that you would have bought anyway, to create a DD.

Without details of limits, APR's, time held etc we can't really offer any more specific advice.

This article may be helpful to you: https://www.moneysavingexpert.com/credit-cards/cancel-unused-cards

YorkshireBoy

Kim_13 wrote: »

You mention a closed account to keep a low APR. It sounds as though this is still open, but that it has been paid off.

I read it differently. Reads to me as though they've previously been rate-jacked and the card is simply closed off to new spending, whilst the existing debt is repaid on the old (lower) APR?

LINNYB

The card is closed to new spending. I was told I could only keep the low interest rate (6.9%) if I closed it otherwise they were going to double the rate! The Barclaycard I've cleared has a credit limit of nearly £10,000 and this would very much raise my % utilisation on the remaining cards.

Kim_13

Have you cleared the card that's closed to new spending? I'd be inclined to close this once you have. If you haven't, could you BT any of this onto the 0% to reduce the interest you pay? Consider how long you think it'll take you to clear, the applicable fee and your limit vs the current balance on the card.

As you say, the Barclaycard helps to show other providers that you can be trusted with credit (due to the high limit) and is helping your utilisation.

YorkshireBoy

Kim_13 wrote: »

Have you cleared the card that's closed to new spending? I'd be inclined to close this once you have.

The account will be auto-closed by the lender as soon as the balance is cleared.