Should you close paid off credit cards

insanityhaha

Background Info
I have 9 cards, totalling £51,000.
I am using 3 of them, totalling £11,000 - 21% utilisation of credit
I want to keep 2 others. 
That leaves 4 cards, paid off, not being used - totalling £35,000 (68% of my total credit)
All debt is under control, I pay no fees or interest. This thread isnt about debt, only credit score.

The Question
Should I close the 4 unused cards?

Pros
In a few years time if i wish to take out a new card with these lenders, I will be a new customer aagain and will benefit from the introductory offers.
Cons
My credit utilisation will increase, and potentially damage my credit score.

Are there other pros and cons iI havent considered. I dont know at what point credit utilisation becomes a negative? I want to buy a new house soon, is it better to have less credit, or better to have this much credit and not use it showing control?

Not sure what is the correct approach.
Thank you in advance for any advice

[Deleted User]

You should keep them all, with your high debt levels, and as all the individual limits are low.

onlyfoolsandparking

First thing to point out is your 'score' plays no part in lending decisions, it's just a guide at best. I assume you are going to take a mortgage on in order to buy your new house?

If that is the case and I was in your position I would definitely reduce my access to lots of credit and this means getting rid of the 4 empty cards BUT NOT all at once. I believe timing is sometimes key with good credit management (well it's served me well over the years) so close the 4 cards maybe 2-3 months apart getting yourself into pole position for a mortgage, keep your utilisation 30% or below (not a major issue if not above 50% in reality) if that is indeed possible with you getting rid of 4 cards and carry on with your paying on time of everything and it should all work out for you. 

insanityhaha

onlyfoolsandparking said:

First thing to point out is your 'score' plays no part in lending decisions, it's just a guide at best. I assume you are going to take a mortgage on in order to buy your new house?

If that is the case and I was in your position I would definitely reduce my access to lots of credit and this means getting rid of the 4 empty cards BUT NOT all at once. I believe timing is sometimes key with good credit management (well it's served me well over the years) so close the 4 cards maybe 2-3 months apart getting yourself into pole position for a mortgage, keep your utilisation 30% or below (not a major issue if not above 50% in reality) if that is indeed possible with you getting rid of 4 cards and carry on with your paying on time of everything and it should all work out for you. 

Yes, I will get a larger mortgage, and the £11k will be paid off before I do so.
Thank you for your advice. Can I ask do you suggest closing them incrementally, so my utilisation doesnt shoot up, or because closing many accounts at once has a negative influence?

onlyfoolsandparking

Slow and steady will win the day, I would close them in order of keeping that utilisation around 30% so if that means paying off cards to keep that low utilisation then that's the way to go IMO and yes I believe closing many accounts at once 'spooks' lenders or appears to. 

Costabit

FWIW my OH and I have closed 8 cards over the last year without any difference to our ( meaningless ) credit scores . In fact , it seems different organisations take differing timescales to remove the closed cards from our credit files ,
So go ahead and close them whenever it suits would be my way to go , at the very least , it tidy's up your admin etc.
Although  I cant comment on the effect it would have on any impending mortgage offer.