Is it better to close credit cards or leave them open?

I_Want_to_be_Free

I read somewhere that you lowered your perceived risk by getting your overall debt below 70%. I have finally got my debt to 69% and it will continue to fall. My question is, is it better to close the credit cards once they are paid off but my debt % will be high or it is better in the eyes of lenders if I have less access to credit.

i.e. is it better to have £20,000 debt with another £20,000 available on credit cards so my % is 50% or is it better to have £20,000 with only access to a further £2,000 so my debt is at 90%?

I'm trying to do things to ensure that I look as good as possible to lenders to get 0% balance transfer offers and ultimately in a few years, a mortgage.

Thanks xxx

Willing2Learn

I would keep the card accounts open, as long-term aged accounts look good on your file. I think that having a lower debt % is also a positive thing.

And well done on clearing £7,500 of card debt over the last year

kevChan

Leave them open! Unless you want to close then reapply after 6 month to secure the introduction deal again from the same bank.

It was a mistake for me to close two of my credit cards when i got two new ones.
my credit score got a bad hit because they think I lost all credits!

[Deleted User]

Ignore your credit score.

It’s not a real number

CakeCrusader

It makes your credit utilisation lower if you keep them open. It's a good idea to use them every now (something small like a coffee) and again and pay in full, they will reduce your limit/close them otherwise.

OA234

Second what Willing2Learn has said. Lower debt utilisation makes you look good and "trustworthy" to lenders. So, I would keep them open for as long as possible.