Credit cards the dos and don’ts

leemarch33

Have been saving hard for a mortgage deposit and have also paid off all of my previous debts in the process. I still have 5 credit cards open with a total of £26000 credit available across all of them. 

I’m just wondering if I should close the accounts? Will they see my available credit as a risk that I may spend in the future. I have a fairly good credit rating so I don’t want to do anything to damage this when I’m so close to having a deposit. Thanks in advance for advice. 

K_S

@leemarch33 With no debt, leaving the cards open or closing them is unlikely by itself to have a material impact on your chances of a mortgage.

If it makes you feel any better, and you don't need that much credit, it may be worth closing some of them for your peace of mind.

JJG1984

Having some settled accounts boosts your credit score as it shows you can borrow responsibly and pay back; even with zero balance but open you have not ended a credit agreement 

i closed 3 of 5 prior to mortgage although the scores are not the be all and end all mine shot up

Once i got the keys i opened two new interest free for 18months to get some furniture 

Chances are your deals have expired so no benefit them being open other than for an emergency but i doubt your going to have a 26k emergency 

JJG1984

Also close the youngest first as average age of active credit is something that contributes to your “score”