Credit limit/utilisation help?

KezzzH

Good afternoon, first post here however I have been reading quite a lot over the last few weeks. Great forum for advice. 

I have a set plan in place to gather enough money for a mortgage deposit. The deposit I require will take another 12-15 months of saving. So, in that time I want to get my finances in great order. 

My credit score is excellent. 975 on Experian and 560 on ClearScore. 

My main issue which I need advice is that I have several credit accounts, I would like to know which would be best to close and which to keep open? 

Virgin credit card. 2.5 year account. £5000 limit. Current balance: £0. Recently finished paying off a car I bought as purchases was 0% interest for 24 months. No missed payments. 

Halifax credit card. 4 year account. 

£2400 limit. Current balance: £500, 0% as I did a balance transfer. 

Paying off £100 a month so will be cleared in may. No missed payments. 

Argos credit card. 3 year account. 

£1270 limit. Current balance: £0. 

Paid off after statements generate. No missed payments. 

Very credit account. 6 month account.
£750 limit. Current balance: £0. 

Took it out to get a great offer on first credit purchase but don’t require it. 

Thanks in advance. 

[Deleted User]

Keep them all.  They're all low limits.

Remember to check your credit files rather than the scores, as that's what lenders will look at.

KezzzH

Thanks, I have done just that via the info on this forum and I have found that I had a financial associate which I have had successfully removed. I wouldn’t have noticed that otherwise! 

maxximus75

Keep them all going and up to date to keep adding to your good credit history.

cymruchris

As above - keep them all - the credit cards - put a direct debit in place for full monthly payment - and then use them regularly JUST for a few of your regular essential purchases - so spending only what you'd normally spend - groceries and petrol for example, a couple of hundred pounds a month over the three credit cards (Not needed on the Very account). The Argos is a credit card - not their store card right?

Thrugelmir

Any need to maintain the Argos account? House keeping never goes amiss. 

yksi

I'd also probably close the Argos account and possibly also Very. You have plenty of time on your hands for history tidying, and store accounts probably won't be beneficial for showing your ability to manage debt, when you can just use your other cards for purchase protection and pay them straight off.

Accept any offered limits with Virgin and Halifax. For what it's worth, all the sites with "scores" suggest that having a credit limit of around £15,000 will be attractive to lenders (taken with a grain of salt and obviously with very low utilisation). From what you have told us you have pretty good money management and barring any nasties lurking in your history, I doubt you will have any problems securing a mortgage in a years' time.