Which card(s) to keep?

Red-Squirrel_2

I'm having a tidy up of finances, I'm going to close some credit card accounts and leave maybe one or two open for credit record purposes, just after thoughts on which are the best ones to close/keep.

Basic visa card with main bank (co-op) opened when I was 18 (nearly 20 years ago) - low limit of £500

Natwest Mastercard - open about 10years limit of £3700

Barclaycard platinum visa - open about 5 years, limit of £7000

MBNA Platinum - open 3 years, limit of £6200

MBNA standard (was NUBA) open about 2 years, limit of £2500

Virgin credit card - open 3 years, limit of £5000



Any thoughts or advice most welcome! Thanks.

[Deleted User]

I'd lose the Co op and Natwest and keep the rest to show stability. They're also likely to give good offers in the future, in case you need them.

Rotate them, using each at least a couple of times a year.

If you wanted to cut down to three, lose the smaller MBNA, but I wouldn't go lower than that.

System

Deleted_User wrote: »

I'd lose the Co op and Natwest and keep the rest to show stability. They're also likely to give good offers in the future, in case you need them.

Rotate them, using each at least a couple of times a year.

If you wanted to cut down to three, lose the smaller MBNA, but I wouldn't go lower than that.

Co-op and natwest are the longest standing accounts! that is absurd.

Don't close any of them. The more good accounts you have the better. The lower your spend to available credit the better.

Red-Squirrel_2

beany_bot wrote: »

Co-op and natwest are the longest standing accounts! that is absurd.

Don't close any of them. The more good accounts you have the better. The lower your spend to available credit the better.

Is it not a concern that I have so much credit available?

I'll be remortgaging in a couple of years, was concerned that they'd look at the limits and realise I could in theory put myself in 25 grand of debt tomorrow!

System

Red-Squirrel wrote: »

Is it not a concern that I have so much credit available?

I'll be remortgaging in a couple of years, was concerned that they'd look at the limits and realise I could in theory put myself in 25 grand of debt tomorrow!

I certainly don't think so. It shows that lenders are willing to lend you lots of money, and you are being responsible with it. You are good to lend to. It's only 24K spread over many accounts. I have £18K on 1 Amex! The lower your % usage the better. Thats why you should always accept a credit limit increase.

If you feel you must close some accounts then close the youngest one/s but I really wouldn't. rule 1 is don't close accounts.

System

From Experian..

"From the standpoint of increasing your credit scores, you can't have too much available credit. Having a very low credit utilization ratio, such as one that's under 10%, can only help your credit scores."

shiny76

Do you use them all on a regular basis?
Are you interested in maximising your 'earning potential' from credit cards? (i.e. stoozing/cashback)

Re: remortgaging: I wouldn't worry too much about how many cards and the length they've been open - you've already established a good credit history (I presume).

I'd probably close a couple of the lower limit or 'younger' accounts just to keep it easier to manage.

[Deleted User]

Ignore the advice from Experian.

Their "advice" is there to only bolster the made up scores and ratings.

Sensible use and management of the accounts is all you need to keep in mind and practice.

Red-Squirrel_2

shiny76 wrote: »

Do you use them all on a regular basis?
Are you interested in maximising your 'earning potential' from credit cards? (i.e. stoozing/cashback)

Re: remortgaging: I wouldn't worry too much about how many cards and the length they've been open - you've already established a good credit history (I presume).

I'd probably close a couple of the lower limit or 'younger' accounts just to keep it easier to manage.

I don't really use them, I have in the past at various points but I don't think I'd remember to use them all once a month etc! I'm not really bothered about using them to generate any income. I make enough to be comfortable and am very busy at work so there's a good chance I wouldn't have the motivation/discipline to keep on top of that sort of thing.

System

!!! wrote: »

Ignore the advice from Experian.

Their "advice" is there to only bolster the made up scores and ratings.

Sensible use and management of the accounts is all you need to keep in mind and practice.

Well forget Experian... whatever. Makes no difference. The advice is still the same.

You can't have too much available credit.

eskbanker

beany_bot wrote: »

From Experian..

"From the standpoint of increasing your credit scores, you can't have too much available credit. Having a very low credit utilization ratio, such as one that's under 10%, can only help your credit scores."

beany_bot wrote: »

Well forget Experian... whatever. Makes no difference. The advice is still the same.

You can't have too much available credit.

Also from Experian, at https://www.experian.co.uk/consumer/credit-cards/guides/using-credit-cards.html:

too many credit cards with high limits could make lenders think you’re overly reliant on borrowed money

This reflects the fact that, while lenders are indeed interested in utilisation, they may also consider the ratio of available credit to income, so it's not as simple as hanging on to as much credit as you can....

Edit: similar message on this site too:
https://www.moneysavingexpert.com/loans/credit-rating-credit-score/#needtoknow2-22
https://www.moneysavingexpert.com/credit-cards/cancel-unused-cards/#creditrating