Close credit cards or leave them open

NurseMoneySaver1122

Hi

So partner and I are hoping to apply for a mortgage this year (maybe early next year). 

I have a credit card which I use sporadically and pay off in full when I do, and a second credit card that I never use. My partner walks has exactly the same with 2 credit cards. 

Wondering whether to close the unused credit card or leave it open and unused? Or should I start trying to use the second card in the same way (small spend and pay off in full)? I thought I read somewhere that unused accounts can cause you issues when applying for credit/mortgages 🤔

Also, should I be using my credit card EVERY month and paying off in full, as opposed to sporadically? 

My credit card use is 95% for the purpose of keeping a borrowing record as I once read that if you don’t have any debt, they still need to see that you can be trusted to borrow and pay back. 

housebuyer143

You don't need to close them but if they are not paid off before completion and in some cases at application it will affect affordability. 
If you are not borrowing close to the wire then it won't really matter 

theartfullodger

I always have at least two credit cards available (all paid in full each month) so that should there be a problem with one then there's the other.  Plus keep a low limit on one just for "iffy" transactions/people. 

Keep the CCs.  They are evidence you pay off your debts, regularly & on time (if you always do...???)

Noneforit999

As others have said, as long as you pay them in full each month, its unlikely to make a difference to the application.

My wife and I have two cards each, we share an Amex (she is additional account holder) and we have another CC for when someone doesn't accept Amex. We have never had them factored into affordability, we always answer no on the application as we pay them in full every month. 

Lenders will ask if you have any credit cards which are not going to be repaid to which you answer no as you pay them in full each month. The lender will credit check you anyway so if you have a balance on one or more credit card and the history clearly shows you pay it in full each month, they should not factor this into affordability. 

NurseMoneySaver1122

Ok so general consensus is leave them open and pay off in full, as I have been.

Regarding my unused credit card, am I wrong in thinking I read somewhere that unused credit cards can have a negative impact on mortgage applications though?

[Deleted User]

Probably.

There is no one size fits all answer. If you have a dozen or so unused cards and a few hundred thousand in available credit, you might have a case for closing a couple. Otherwise, there's normally little cause to worry.

Snookie12cat

NurseMoneySaver1122 said:

Ok so general consensus is leave them open and pay off in full, as I have been.

Regarding my unused credit card, am I wrong in thinking I read somewhere that unused credit cards can have a negative impact on mortgage applications though?

I tend to close all cards I am not planning to use (such as interest free period has run out) - if you have any like this then close them down as they could affect future borrowing.