Closing a credit card advice

last_gasp_

Hi all,
I took out a 0% interest for 28 months credit card with the post office a couple of years ago and am close to paying it off within the 0% interest time frame.
The amount on it has been an absolute !!!!!! to pay off so this is something I'm cautious of. 
I have read closing a card that's paid off and at 0 balance can effect my credit score, so am a little uncertain of best practice here. 
So do I close the credit card off, given I don't now have 0% interest on purchases left? I do want to take out another credit card for a lesser amount - will closing this one down make a difference? 

Thanks.

eskbanker

Best not to obsess about invented scores not seen by lenders, and instead concentrate on what your actual needs are!  Why are you looking to take out another card if you have one with plenty of headroom already?

last_gasp_

My current one's 0% interest free purchasing time frame is at an end basically. I wanted to close it and open up another with 0% interest on purchases but without such a large credit amount at some point in the next few months. 

eskbanker

last_gasp_ said:

My current one's 0% interest free purchasing time frame is at an end basically. I wanted to close it and open up another with 0% interest on purchases but without such a large credit amount at some point in the next few months. 

You might want to have a play around with the eligibility checker at https://creditcards.moneysavingexpert.com//purchases to see what your credit status looks like at the moment but it's difficult to generalise about whether or not to keep an existing card before applying, especially without visibility of fuller circumstances, e.g. income, credit limit, other commitments, etc.  You don't get to choose your credit limit anyway so might even be offered more than you currently have access to, although this is probably unlikely given the current crisis, which is likely to be tightening credit being offered....

[Deleted User]

Just apply for another and if you don't trust yourself with the limit, then lower it.
 
Bear in mind that this doesn't generally look good to lenders, but better than letting your spending problems get you into trouble.

cymruchris

Depending on how much available credit you have on file would depend on whether I'd close it. I did recently close a capital one card as the limit was low, and I'm now beginning to get mainstream lenders again. It did drop my fictional score - but it doesn't worry me. Unless you have lots of credit cards - I would keep it open - put a shopping bill or a tank of petrol (in normal times) on there every month and pay it off in full. Keep the card active - but don't spend on it for credit. Keep your utilisation way down - and that will help you gain other better deals in future. 

Fingerbobs

I'm not an expert, but I see no reason why closing a credit account with a zero balance would be viewed negatively. I always clear the balance on credit cards before closing them, as it makes the closure process easier.

last_gasp_

Many thanks all!