Should I tidy up/close credit cards?

gravel_2

I know this is a regular point of discussion online but hoping for some guidance on what best to do.

I have 5 cards.

1 - £6k limit, minimal spend, clear it every month, opened 5+ years ago

2 - £6k, regular household spend, clear it every month, opened 5+ years ago

3 - £25k, no balance, this was until recently a 0% deal that I had filled up over the 24 month promo period.

4 - £25k, primarily a transfer from No. 3, paying minimums, this is 0% until next summer.

5 - £7k, about £4k balance, recently taken out 0% 24 months for some known large household purchases and probably regular spend to maximise balance during the term.

1 and 2 are old cards, opened/used for a specific purpose of personal and household spend splits with wife and I don't intend to get rid of these.

4 I have until next summer and will decide whether to transfer again or pay off.

5 will pay off or transfer in 2028.

3 is my big question mark. This card has served its purpose and I will not use it again. Am I safe to close this? Alternatively, would it be better for me to request a reduction in the credit limit but keep the account open?

For context, I have recently moved house and have no major planned credit applications in the near future. I use credit cards for convenience and 0% periods so would like the flexibility to take out additional cards in future in case I have a big spend planned or want to put regular spending into suspension and earn interest on that money instead.

Conscious that having both 3 and 4 open means I have a lot of credit available to me (bad, if looking for more?) and that it makes my utilisation look lower as 3 balances out 4 (good, in credit score terms?).

I would rather not have card 3, and I don't mind a blip in my credit score, what would you recommend?

Desmond_Hume

if you know this is a regular discussion point, why are you concerned about your credit score; this is also discussed in the same threads.

Brie

As you rightly think having too much credit may make getting your next 0% deal - even with a card you already have.

Your credit history won't suffer as you are managing everything nicely so, yes, close 3.

The_Groat_Counter

Agree with @Brie, do what you've essentially already decided to do and close card 3.

jimjames

The only reason I'd close a card is if it means I can reapply for one with that company in a couple of years. There are several banks I can now use again thanks to closing the cards previously.

Maegi

I would look to combine credit limits (from the same issuer) and possibly a product change to a better card e.g. cashback/ points/forex free.

Card issuers can't see the reason for a credit reduction (when not issued in-house) so it's generally better to consolidate your credit over a smaller number of card than more cards with lower average limits.

e.g. don't reduce an unwanted 10k card to 2k - just close the whole account down.

Tim_L

The admin ends up being a PITA for multiple cards. My rule now is that if I have a card it is for a specific reason. Anything that runs off the end the deal I wanted it for gets closed. You sometimes get retention offers, Amex in particular, and I'm not above doing the offer quickly and then closing the card.

Reasons for holding a card include having a reliably large credit limit for big purchases, fee free forex at interbank rates, stoozing and interest free purchases, cashback, card benefits (mostly related to travel for me).