Is it better to close down old credit cards not being used

Ice-man

I play the "balance transfer" credit card game!

So much so that I have about 6 credit cards "open" with now a zero balance on them, as I have used and abused them and now balance transferred elsewhere.

These "previous" cards have got about £40,000 credit allowance on them between them all and my one with Tesco is about £18,000!.......all still open but with zero balance on them

So my question is this going forward:

If I am not using these cards anymore, is it better(from a credit score point of view and for future balance transfer options and possibilities for any future credit options) to close these cards down if I am not using them now?

How do the underwriters of the credit cards view this situation?

Do they see me as a "good" risk if I keep these cards open? If I keep them open but don't use them, am I seen as being responsible and a "good risk" by not using them and then % wise, I am only borrowing a small amt of my total overall credit available to me?

Or is it better to close them all down? Would this give me a better chance of applying for future credit on future balance transfer cards because if I close them down, I would have less credit available for me to use and get into credit problems with, so consequently I would then have a better chance of being given a bigger credit amount on my next card?

Will the fact that I close down all my cards together quickly have a negative impact on my credit score and hamper my chances of future balance transfer credit cards being offered?

Or is there a happy medium? Is it good to have a little bit of credit available on credit cards even though you are not using it? I do have a couple of "everyday" credit cards with enough credit on them already.

If so what is the right balance? 

Is there a magic formula?

How is this all viewed?

Any help is appreciated.

Many thanks

Kind regards

cymruchris

If you read any post that mentions credit score on these boards - you'll soon come to know that this useless piece of information is only seen by you. For some people it can be a vague indication of their credit history - for others it can be wildly inaccurate. (Hence people saying 'i have a score of 999 how dare they refuse me a credit card' almost on a weekly basis).

Will you be wanting a new mortgage any time soon? 

You have a lot of zero balance cards - but you've not mentioned whether you're carrying any debt (even if it is on zero percent).

Long standing accounts (and I'm talking years) can have a positive impact on your credit FILE. (not score)

Having a good level of available credit can be good to SOME mortgage providers - but NOT to others.

Do you also have cards that you don't want to close down because you will be using them?

The magic number producing credit agencies seem to suggest that you should have a total available credit limit of above £15k (but that's also a number they seem to have made up).

You might want to close a couple down - maybe keep the largest limit one open - and then in a year - if you need them - depending on their terms and conditions - you might be able to get another zero percent card all over again from the providers you've closed accounts with. 

Ice-man

cymruchris said:

If you read any post that mentions credit score on these boards - you'll soon come to know that this useless piece of information is only seen by you. For some people it can be a vague indication of their credit history - for others it can be wildly inaccurate. (Hence people saying 'i have a score of 999 how dare they refuse me a credit card' almost on a weekly basis).

Will you be wanting a new mortgage any time soon? 

You have a lot of zero balance cards - but you've not mentioned whether you're carrying any debt (even if it is on zero percent).

Long standing accounts (and I'm talking years) can have a positive impact on your credit FILE. (not score)

Having a good level of available credit can be good to SOME mortgage providers - but NOT to others.

Do you also have cards that you don't want to close down because you will be using them?

The magic number producing credit agencies seem to suggest that you should have a total available credit limit of above £15k (but that's also a number they seem to have made up).

You might want to close a couple down - maybe keep the largest limit one open - and then in a year - if you need them - depending on their terms and conditions - you might be able to get another zero percent card all over again from the providers you've closed accounts with. 

Thanks for your message and help
Just to fill you in on your questions:
No, I will not be applying for a new/another mortgage anytime soon
The only debt I am carrying is my mortgage(and that hopefully will not be for much longer) and three 0% balance transfer credit cards with a total of about 10K on them between all three. I have about 5-6 old/redundant 0% cards with zero balance on them all, but the total credit I am able to use on these redundant cards is still is around 40K
You mention long standing accounts making a positive impact on your credit file? Is this because you are deemed as a good loyal customer? ...or what is the reason for this positive impact
I do have other "everyday" credit cards with enough credit on them to satisfy my everyday/every month spending and I won't be closing these down and I think these come to about 10K, so I will bear in mind your magic number of around 15K when and if I close down my other redundant cards.
You are quite right though in that it seems a bit silly keeping so many cards open as they are not being used but its good to know someone else's view to see if there is a magic number of credit which is deemed good to have at your disposal, but just wasn't sure if it was the right thing to do in closing them all down and whether this could work against you longer term. I guess it is getting the balance right........but what is the right balance?
Thanks again