Old empty cards

waveydavey0

I find I have a number of old credit cards, with a total credit of over 27k (unused) on them. Which is best for my credit rating - cancelling them, reducing credit limit, or leaving them be ?

[Deleted User]

You don't have a credit rating.

The answer to what is best depends on what cards you have, your limits, debts, income and future credit plans.

pcoventry

My dad has 4 cards with over 100K Limit - all empty he's done this for years and has a top score - does not affect him at all.

PixelPound

The question is why you are asking - what's your end goal. If it's to simply improve a score because you want to get it high as possible, then can't say.
Cancelling cards may improve your credit rating, or not
Cancelling cards may lower your credit rating, or not
reducing limits may lower your credit rating, or not
reducing limits may improve your credit rating, or not
Leaving them be might not change it, but who knows, it might!

You need to look at other factors.
Some people keep cards open for offers, some people close cards to be able to get "new customer" offers. etc

sparkey1

Keep them. It makes your average credit utilisation lower. Here is an example. Person A has one credit card with a limit of £1000 on. He owes £900 quid. He is seen as high risk because he has a 90% debt ratio. Person B also has one card, and owes 1800. Ie Double that of Person A. However person B has a 10K limit, so he is only utilising 18% of his credit. He is seen as lower risk, and potentially is scored higher. Another thing to note, the longer the average card age, the more stable you are considered to be, and therefore that helps with the scoring.

The only time I personally would close a close, would be if they introduced a new annual fee, or if I wanted another type of card from the same lender, and they had a policy on allowing only one card. For example, it may have changed, but Halifax used to let you have only one credit card at any one time.

waveydavey0

Ok then, credit score.

sparkey1

Keep the cards!

waveydavey0

Ok, consensus says keep them, so I'm doing that.

Dot.007

Are they for free? If yes keep them

waveydavey0

yeah, all zero balance, zero fee.

sparkey1

Just so you are aware. Depending on which cards, if they are not used, most lenders will normally close them after a certain time period. Ie 1 or 2 years. So just make one small transaction on each card once or twice per year.