Credit Card closures

BethArmett

Hey everyone, 
Basically I'm hoping to apply for a mortgage in 1-2 years, using a broker as I will have PDL's on my report. Anyway, I'm hoping to get the amount of credit I have available down but I'm unsure of which ones to close.. I understand that the amount of credit I have available can be a good sign if I manage it correctly (which I do) but I've had spending issues in the past (no defaults, CCJs etc.) but I have been known to max cards and be stuck paying the minimum payment for months. So if anyone can give any advice I'd really appreciate it!

The cards I have and their limit are:
Vanquis - £3000
Barclay - £5300
Aqua - £1700
Tesco - £1300
Capital - £200
NewLook card - £75
My oldest cards are my Vanquis and Barclay - both over four/five years old 

[Deleted User]

There's no particular need to close any of them from a credit file point of view but if you're not applying for a couple of years, then you might want to get rid of New Look and Capital. 

However, if you do have spending issues, then you might need a more drastic solution such as lowering limits as well as cutting cards, although that's not good from a credit file angle.  How bad is your spending problem?

BethArmett

Deleted_User said:

There's no particular need to close any of them from a credit file point of view but if you're not applying for a couple of years, then you might want to get rid of New Look and Capital. 

However, if you do have spending issues, then you might need a more drastic solution such as lowering limits as well as cutting cards, although that's not good from a credit file angle.  How bad is your spending problem?

Thank you - I have managed to clear all of my credit card debt, it took a very long time but they all have £0 balances now. I have managed to reduce my spending a hell of a lot but the issue is that I'm impulsive which is why they all ended maxed in the first instance and I ended up with so many cards. I'm now saving for a deposit. I've read that some companies will close accounts that aren't used for long periods of time so I'd rather have a few that I can chuck a tenner on for example and pay off at the end of every month just to keep them open and operating 

jonesMUFCforever

BethArmett said:

Deleted_User said:

There's no particular need to close any of them from a credit file point of view but if you're not applying for a couple of years, then you might want to get rid of New Look and Capital. 

However, if you do have spending issues, then you might need a more drastic solution such as lowering limits as well as cutting cards, although that's not good from a credit file angle.  How bad is your spending problem?

Thank you - I have managed to clear all of my credit card debt, it took a very long time but they all have £0 balances now. I have managed to reduce my spending a hell of a lot but the issue is that I'm impulsive which is why they all ended maxed in the first instance and I ended up with so many cards. I'm now saving for a deposit. I've read that some companies will close accounts that aren't used for long periods of time so I'd rather have a few that I can chuck a tenner on for example and pay off at the end of every month just to keep them open and operating 

That sounds like a decent plan.

born_again

Get rid of the one's that have the highest interest rates. To remove any temptation to slip back to old ways (well done for overcoming them )
Then put your normal spending on one card and pay it back in full each month. That will give you a better credit history and show you are managing your money.

PDL's can have a big impact on future lending so going via a broker is a good move.

cymruchris

BethArmett said:

Deleted_User said:

There's no particular need to close any of them from a credit file point of view but if you're not applying for a couple of years, then you might want to get rid of New Look and Capital. 

However, if you do have spending issues, then you might need a more drastic solution such as lowering limits as well as cutting cards, although that's not good from a credit file angle.  How bad is your spending problem?

Thank you - I have managed to clear all of my credit card debt, it took a very long time but they all have £0 balances now. I have managed to reduce my spending a hell of a lot but the issue is that I'm impulsive which is why they all ended maxed in the first instance and I ended up with so many cards. I'm now saving for a deposit. I've read that some companies will close accounts that aren't used for long periods of time so I'd rather have a few that I can chuck a tenner on for example and pay off at the end of every month just to keep them open and operating 

I wouldn't close any - I would use each one for a transaction each month, and then pay in full. I might use the Capital one card a bit more for a few months - just putting on the grocery shopping - making sure the money is there to pay for it - and in a few months they'd probably up the limit there as well in line with the other cards. If you feel there's going to be a temptation to get back into your old ways - then cut them all up, but as you say total inactivity might result in limit cuts and closures. It's certainly better to have a few thousand pounds worth of 'available unused credit' when it comes to your mortgage.

Thrugelmir

Why do you need so many accounts ? Close the ones you no longer need.   

jonesMUFCforever

Thrugelmir said:

Why do you need so many accounts ? Close the ones you no longer need.   

Normally I would agree with you - but in today's climate obtaining new credit will become more difficult.
It is great that the OP has paid off his card debt - but having an emergency source of credit from different lenders may pay off long term.

[Deleted User]

Consider ditching the ones with either high APRs or low credit limits.
If you have payment issues, consider closing them all or perhaps keeping one only (e.g. Barclays) for emergencies.  

Thrugelmir

jonesMUFCforever said:

Thrugelmir said:

Why do you need so many accounts ? Close the ones you no longer need.   

Normally I would agree with you - but in today's climate obtaining new credit will become more difficult.
It is great that the OP has paid off his card debt - but having an emergency source of credit from different lenders may pay off long term.

Seems excessive to me requiring this level of instant credit.
Vanquis - £3000
Barclay - £5300
Aqua - £1700
Tesco - £1300

If you need finance for a particular purpose. Loans are a far better option. 

The credit limits may well get lopped as time passes anyway. 

cymruchris

Thrugelmir said:

jonesMUFCforever said:

Thrugelmir said:

Why do you need so many accounts ? Close the ones you no longer need.   

Normally I would agree with you - but in today's climate obtaining new credit will become more difficult.
It is great that the OP has paid off his card debt - but having an emergency source of credit from different lenders may pay off long term.

Seems excessive to me requiring this level of instant credit.
Vanquis - £3000
Barclay - £5300
Aqua - £1700
Tesco - £1300

If you need finance for a particular purpose. Loans are a far better option. 

The credit limits may well get lopped as time passes anyway. 

Those are not particularly high limits, and the overall amount of credit isn't excessive though, I would definitely leave them in place until I was ready to go for a mortgage, and then find a good broker to advise on next steps. To some providers having credit lines of around £10k or more can be a positive factor, to others it can be a negative factor. As long as the Op uses the cards from time to time and pays them on in full, there's no need to cut out any cards for the moment, but I'm sure the Op can make a balanced decision based on the various responses received.