Cancel an unused credit card to improve credit score?

ScottyStu

I have a credit card with a balance and one without. I'd like to get a new balance transfer card for the card with the balance ('d like to pay it off, but most of my monthly payment is just interest...). Is it better to close the card with zero balance, or keep that card, which has a decent credit limit, with no borrowing on it? On one hand my borrowing ratio (limit available versus borrowed) would be lower, but on the other hand maybe a lender would look at that as a risk (that I have a large credit limit I could use at any time and over-extend myself).
NB I also have an old current account with a £1,500 limit but it's also unused. Does that count for or against me.
I'm reluctant to give these sources of credit up, "in case of emergencies" but will do if they're actually working against me!

[Deleted User]

You don't have a credit score
Holding an older card show stability, pay stuff on it every month, pay off in full, makes you look better
What current account has a £1500 limit? You mean an overdraft? Living in the OD looks bad and means potential to run up debt
The fact you're struggling to clear debt is what will count against you, not possible credit - apply for a BT card with a sub-prime account and see what happens 

MattMattMattUK

ScottyStu said:

I have a credit card with a balance and one without. I'd like to get a new balance transfer card for the card with the balance ('d like to pay it off, but most of my monthly payment is just interest...). Is it better to close the card with zero balance, or keep that card, which has a decent credit limit, with no borrowing on it? On one hand my borrowing ratio (limit available versus borrowed) would be lower, but on the other hand maybe a lender would look at that as a risk (that I have a large credit limit I could use at any time and over-extend myself).

In most cases no one really knows. Different lenders will view things differently, The bigger issue might well be the persistent debt if you are not managing to get the total down by any significant amount. You could try checking eligibility first, it will depend what the rest of your credit record looks like.

ScottyStu said:

NB I also have an old current account with a £1,500 limit but it's also unused. Does that count for or against me.

Do you mean the limit is an overdraft? I would probably close that account, especially with overdraft interest rates being so high now. It might not count against you, but it also will not count in your favour either.

ScottyStu said:

NB I also have an old current account with a £1,500 limit but it's also unused. Does that count for or against me.
I'm reluctant to give these sources of credit up, "in case of emergencies" but will do if they're actually working against me!

Do you have a rainy day fund? It might be worth doing a statement of affairs on the Debt Free Wannabe board and have a look at getting your costs down, clearing your debt and then building up a buffer. Credit cards rarely function well as an emergency backup as most people find that once they accrue the cost the interest soon makes it a hole which is impossible to get out of.

Dandytf

I'de say to avoid future temptation, consider closing the unused card.
Though maybe best to apply for a new card 1st.

poppy10_2

https://www.experian.co.uk/consumer/credit-cards/guides/unused-cards.html

It can be good to show lenders that you can successfully manage multiple credit accounts, as they may see this as evidence that you’re a reliable borrower. So, cancelling a long-held card could put you at a disadvantage, depending on what the lender is looking for. What’s more, cancelling a card may increase your credit utilisation – the proportion you use of your available credit – which can also lower your score. For example, if you have an overall limit of £1,000 and you use £250 of it, your credit utilisation is 25%. But say you cancel a card and your overall credit limit shrinks to £500 – if you’re still using £250 in credit, your credit utilisation will now be 50%.