Should I close my credit card accounts?

Steameh

Morning all,
I've just paid off my last bit of debt after a mammoth 19 years being in debt at varying levels...
I have read what they say about closing accounts and your borrowing percentage affecting your credit rating but what about when you owe nothing?
I'd really like to sign off this achievement by closing the lot, after 19 years I never want the urge or temptation to use credit ever again!

Any advice on this?

[Deleted User]

If you are unable to trust yourself to use credit, then you should close the accounts.

It'll be very poor for your credit history, but better than ending back up in huge debt.

Steameh

Thanks zx81
How poor is very poor. My credit score is currently 999 on Experian and 650/700 with the other company. I do not plan on applying for anything significant like a mortgage at the moment.

Any idea how long it would take to recover my credit score?

[Deleted User]

Your credit scores are made up. Ignore them.  If you were to be given a true credit score, it would be in the low hundreds after 19 years in debt. Lenders only look at your history of credit management and then score you themselves.

Once all your accounts are closed, your risk would gradually increase until you have empty credit files, at which point you would have the standard risk assessment for anyone else who has no evidence of managing credit.

RecoveringAndy

You're credit score doesn't define you. 
If closing the accounts would bring you a sense of happiness, I'd say go for it. Avoiding getting back into the position you were in is key. 

ZaSa1418

How many credit cards do you have? 

Steameh

Deleted_User said:

Your credit scores are made up. Ignore them.  If you were to be given a true credit score, it would be in the low hundreds after 19 years in debt. Lenders only look at your history of credit management and then score you themselves.

Once all your accounts are closed, your risk would gradually increase until you have empty credit files, at which point you would have the standard risk assessment for anyone else who has no evidence of managing credit.

Thanks for the explanation.

RecoveringAndy said:

You're credit score doesn't define you. 
If closing the accounts would bring you a sense of happiness, I'd say go for it. Avoiding getting back into the position you were in is key. 

I have learnt to become pretty good with money and not overspending. I think it would bring me a sense of closure.

ZaSa1418 said:

How many credit cards do you have? 

I have 5 accounts with £40,000 available credit combined.

Cisco001

I assume most people don't need £40k credit for day to day purchase.
Personally have 1 x AMEX, 1 x Visa and 1 x Master credit card...

[Deleted User]

Hi
I'm will be in a similar position later this year when one of my CCs will finally be at zero in July (ish) and the other will be paid off at the end of the year (hopefully).  Having been in debt most of my adult life, I am going to close them once they have been paid off. Many of my credit card purchases have been impulse buys and have nothing to show for it.  We will have one credit card between MrBB and I which is paid in full every month for online food shopping, insurance etc. This has worked well for both of us for nearly a year for budgeting etc so I know the control is there now.  It will mean that Mr BB's credit card will be the main card with me as an additional card holder.  Upon checking my credit score many years ago, it suggested my credit score would improve if I had a credit card of my own (I didn't have any at the time as I said off the debt and closed them)  I wish I hadn't fell for it as it had got me into the mess I'm in now.  I've lost out on my forever home because of this and I don't want this to happen again.  We are giving ourselves another two years to this debt off and to save as much as we can so we are in a position to move when we're ready.

cymruchris

If you're not planning on any major financial commitment like a mortgage ever again - then you can do whatever you like. Personally - I'd take whichever two accounts were the most attractive in terms of perks/points - and close the other three. It's always good to have things for an emergency as long as you can control your spending. If you're down to zero - now's the time where you put ONLY your everyday spend on them in order to gain points or cashback, and then pay in FULL with your direct debit each and every month. Then over the period of a year you might earn yourself a little treat. That's assuming you're now in a much better position to trust your spending (which it sounds like you are) - Well done on your achievement.

Steameh

I have a mortgage at the moment but the property is rented. My next goal is to try and buy a second property to live in and keep the other rented. Not sure how achievable this is yet, need to check what deposit I would need. So a mortgage application is potentially on the horizon but certainly not within the next 12 months.

I do believe I have the discipline to not spend on a CC, or if I do only use it as a monthly expenditure card and pay it off each month. I just quite like the idea of having zero credit card accounts. More of a phycological thing really.