Cleared credit cards, close accounts?

AshKitch

I’ve just cleared around £6500 off 2 credit cards and my PayPal credit. I now just have ~£700 transferred onto my oldest car which I got a 22month 0% deal on - I’m hoping to clear it within 8 months. I’m hoping to apply for a mortgage within the next 12-18 months, and wondering what I should do with my cards now they are not in use. I currently have: 
Barclaycard (2015) limit - £1200
MBNA (2018) limit - £5500
M&S (2018) limit - £1500
Halifax (2019) limit - £4500
PayPal Credit - limit £3500.
Obviously this is £16,200 available credit, with only £700 currently on the Barclaycard. Is this amount of available credit likely to hurt a mortgage application? Or will closing accounts be more detrimental? I’m thinking perhaps I should close the M&S and Halifax cards and keep my two oldest cards, along with the PayPal credit. Any help would be greatly appreciated.

Thank you

Arfa__

After clearing cards, I've been closing them. If only because it opens me open for better 0% new customer rates at a future point if I need to move remaining debt around.

I can't comment on what impact having many dormant cards around would have on a mortgage application though.

AshKitch

From what I’ve read having too much available credit is a red flag for mortgage providers. As you could easily get yourself into a lot of debt and then not make repayments. Supposedly, closing accounts is also bad so I’m stuck on what’s the best course of action 

[Deleted User]

Your limits are very low - keep them.  There's rarely a need to close down old cards unless they're dwarfing your income or you have a spending problem

Emmia

Personally I'd remove temptation and close some of them - and indeed if you're not using them providers may close the cards or substantially reduce the limits available.

maxximus75

Keep the cards open.  Make sure you have a DD to pay in full, for each card.

Rotate the cards and use each month for a purchase(s).

This will keeps the acounts active and continue to be positive towards your credit history.

If you start closing cards this could throw up a red flag for your other credit providers and they could follow suit.

Your available credit limits are not high in the grand scheme of things and the average age of your credit card accounts, isn't very long.

Just use what you have, when you need to.

Dandytf

@AshKitch
I'm in process of closing what I deem to be a crazy potential total Credit Limit from various cards.
5.6k to pay -5k since shifted over to 15% loan -42 months -150 per month.
Aqua 1 -2850 Limit -Closed past few days.
Aqua 2 -2650 Limit -600 balance 0% 6 months -I'm clearing over some months if not sooner.
Cap1-1 1450 Limit -Closed past few days.
Tesco 600 Limit -0 balance to be used Groceries+Fuel -paid in full each month.
Vanquis Chrome -4250 Limit -to be closed very soon 0 balance.
Latest rbs card 3650 Limit -not to be used as yet.
I'm finding this close route much less hassle, and careful +3.5 years with minimal Credit Card use, should be sensible.

[Deleted User]

I wouldn't say your limits are crazy.

They may be a little on the low side, but they're still usable and it shows that lenders have at least a little trust in you.

Thrugelmir

For what purpose do you wish to keep the accounts?  Close them if you don't need them.