Should I close my credit card accounts?

cymruchris

If there's potential for a mortgage to be on the horizon - it's good to show a future lender that you have a good amount of available credit - so from that perspective  - I'd not hurry to close any of them. Some say that too much credit is a bad thing - but would depend on the lender. A good broker will advise when the time is right in terms of what you should close or keep open. For now - I'd put my shopping and petrol on them every month and pay in full. You might find over the coming months that some of the limits get reduced if you're only using them a little - but that's not the end of the world if it happens.

maxximus75

Why not think of it this way? 

Although you may feel that closing with account will give you, closure?  You have been disciplined and determined over the past years to clear your debt which is a major achievement, well done!

Why not take that new found approach and confidence to manage your existing accounts effectively thus providing you with a good credit history, to aid you in your future endevours such as a mortgage.

Set up each account to pay in-full, by direct debit and rotate card use, each month will continue to add a positive credit history.

You have already put your previous troubles behind you now make credit work for you.

Good luck!

Alex9384

I agree with Maxximus75.
How old are your cards? Your accounts most likely have years of history.
If it was me, I would just keep using them on a regular basis. Just set up direct debits for full payment each month.

I have 5 credit cards too. Combined limit a bit over 23k. I'm planning to close the card with the lowest limit as they refuse to increase it despite the other 4 lenders offering me regular increases (new Amex from 5400 to 6000 after just 3 months). The card with the lowest limit also has the highest APR. Although APRs don't really matter to me as I never pay any interest, I find that card useless now when I have much better cards. I only keep it for having an additional direct debit (£5-10 per month) but I will get rid of it soon.
Perhaps you could do the same thing? Just get rid of the "most useless" card and keep the other four?

blatchp

I admire you for getting the debts down, and I'd agree with ignoring any Experian rating such as 999 as it's irrelevant when a lender assesses your application.  Having said that they only look at the last 6 years anyway.  Perhaps keep one card with a manageable limit of say £1000 for the future?

Alex9384

blatchp said:

I admire you for getting the debts down, and I'd agree with ignoring any Experian rating such as 999 as it's irrelevant when a lender assesses your application.  Having said that they only look at the last 6 years anyway.  Perhaps keep one card with a manageable limit of say £1000 for the future?

1000 limit makes it look like a subprime card.
Not to mention that reducing the card limit and closing multiple accounts at the same time may indicate that lenders no longer trust him and decided to end their relationships with him. I would only close one card at a time. Then another one a half year later or so. But I would definitely keep at least 2 or 3 cards (especially if they have good history of payments on time) and not reduce any limits.