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Credit cards the dos and don’ts

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. 

Replies

  • edited 28 February at 10:37PM
    K_SK_S Forumite
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    edited 28 February at 10:37PM
    @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.

    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.

  • JJG1984JJG1984 Forumite
    33 Posts
    10 Posts
    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 
  • JJG1984JJG1984 Forumite
    33 Posts
    10 Posts
    Also close the youngest first as average age of active credit is something that contributes to your “score”
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