Do zero balance credit cards adversely affect credit rating?

LukeHayward

I have 6 different credit cards that came about over a long period. Generally only one or two have an outstanding balance on them but currently only one - the only one I plan to use going forward.

Is it a good idea to keep the zero balance cards open?  I heard that this improves credit rating (i guess the logic is that borrowing £1,000 on one card against circa £50,000 total credit over 6 cards looks better than borrowing £1,000 against a single card with £5,000 limit).

Or better just to close the cards i don't need?

Many thanks, Luke

cymruchris

I'd keep them all - set all the unused ones to direct debit payment in full - and then put a transaction or two through each one every month - so they are continuing to be used. Long-term accounts that are well managed can have a positive impact on some lenders internal score charts. 

LukeHayward

Sounds like a good idea - many thanks