Balance transfer / closing old card accounts

SunnyUpNorth

Hello everyone. I have managed to get all my existing cc debt (on two cards) of approx £10k total (split roughly 70:30 across the two cards) transferred onto a 0% card which will save me a bit of cash each month (not all the previous balances attracted interest but enough to make the switch more than worthwhile. Ideally I want to close both existing accounts. I'm confident that I am not going to suddenly rack up an additional £10k debt (after years of chaotic financial planning over my 20s I'm v organised now, and am fortunate enough to have a good salary now) but would prefer not to have the option at all!

I've read on other threads that keeping a card "open" is positive as it shows future potential lenders that you have disciple with available credit. Is this right? If so, should I keep both existing accounts open, or just one? And if so, if I reduced the limit right down on either/both, would that have the same benefits? 

One of the existing cards I want to remain "open" for at least a few months as I paid for flights we're due to take in July, but given the current situation they may well be cancelled and I suspect my life will be easier in terms of getting a refund if I haven't previously closed the account!

Any advice most welcome, thanks. 

onlyfoolsandparking

Will you be able to pay off the 10k debt on your new card before the 0% promotional rate expires? If yes then great, if no then definitely do not close any cards!
Whether you should close your 2 existing cards apart from the obvious answer above depends on how many cards you have in total and how you use them, personally I wouldn't close them they are a good back up if your disciplined which you say you are. 
Long standing credit accounts are looked upon favourably IMO although what's more important is payment history. I agree about keeping the card you paid for a holiday on and are expecting a refund and whilst I don't know whether its a negative to ask for a credit limit decrease, I'm thinking? it might display a weakness to lenders in your ability to handle credit and so I've never asked for one.  

SunnyUpNorth

Hi, thanks for replying. The aim is to pay it off in the 0% period (it's 26 months) but there is always the chance I won't manage it. On that basis then, I'll keep the cards open, but empty. I'll continue doing what I do now which is freeze them on the respective apps and just not use them (which is what I plan to do with the new card). I only have the two, and now three, and no store cards. A back up is fair too - as with the flights this summer, it's useful to have the option pay on card (I booked the flights just as airlines were going bang so wanted the protection, as it's flights only). I think your view re the decreasing limit is a fair one, I've never really thought enough about it. Thanks for your input, it's been really helpful!

[Deleted User]

As long you have three or four active cards, it wouldn't do too much harm to close any others, but don't go decreasing limits.  It's another warning sign to lenders.

Make sure you use the cards you have regularly.  Show lenders that you can use credit responsibly.

SunnyUpNorth

Thanks. I'm so glad I asked the question because I was definitely going to ask for a credit limit decrease. Seems counter intuitive to me to think that asking for that is bad, but I completely understand where you are coming from re it looking bad/me not trusting myself etc. If I stick the odd Tesco shop on one of them every now and again and then pay it off it looks responsible too. Thank you both, you have been really helpful. 

MallyGirl

you seem to have all the advice you need but I have a quick follow up.
You should never cancel a card that you have bought flights on until after you have returned from that holiday. Some airlines want to see the card that you booked on as part of their security checks and I nearly scuppered a family holiday due to this. Luckily I had just cut up the card rather than closing the account and I managed to get a replacement card less than 24 hours before we flew. I will never make that mistake again - the stress was awful.

SunnyUpNorth

Thanks MallyGirl - hadn't thought of that either! Definitely don't want that kind of stress; I'm sure if we even manage to fly in July it's going to be strange enough as it is without having that too!