Will cancelling unused credit cards affect credit score?

Alison-J_2

If i cancel my unused credit cards will it make a difference to my credit score? I may need to raise my mortgage soon as I am moving house and want to have a good score.

exel1966

Yes it will have an major effect on your credit rating as by cancelling your unused cards you will lower your available credit which all lenders can see when looking at your files.
Whether it will as much as you will hope it will do though is something you can't get an answer to here.

Teterow

Ah, this is interesting! I have also one or 2 unused credit cards and wanted to cancel them. But this doesn't seem a good idea. Interestingly, I applied for the new Goldfish card in order to get the £41 cashback via Quidco and was denied.

YorkshireBoy

Alison-J wrote: »

I may need to raise my mortgage soon as I am moving house and want to have a good score.

In my experience, mortgage lenders are not concerned with 'available' credit and only look at your 'used' credit. For other (perhaps unsecured) lenders such as CC & loan providers, however, your available credit will play a far more significant part in their credit scoring criteria.

YBS, for example, reduce your stated salary by 36% of your debt (approx 12 months of 3% minimum payments) before applying their mortgage lending multiples.

foxybabe

I just cancel mine when the interest free period runs out then I can't be tempted to use them. I've only got one with a small amount on now and when thats paid I am never having a credit card again so I am not really bothered whether it affects my score or not really.

benf90

foxybabe wrote: »

I just cancel mine when the interest free period runs out then I can't be tempted to use them. I've only got one with a small amount on now and when thats paid I am never having a credit card again so I am not really bothered whether it affects my score or not really.

Why not use them to your advantage? i.e., get a cash back card and pay the balance off in full each month so you don't pay any interest.

Credit cards have many benefits as long as you're careful with what you spend etc.

danjaq2004

I also have a few credit cards, £0 balance, left over from previous balance transfers, so you saying either keep them or just cancel them - they're not being used.

Also, can you reapply to the same card company you were with after say 12 months of the account being closed to open a new one and benefit from the promotions which generally are only available to 'new customers'?

Thanks!

lisyloo

Also, can you reapply to the same card company you were with after say 12 months of the account being closed to open a new one and benefit from the promotions which generally are only available to 'new customers'?

Yes.
Some do have a time period, but 12 months should be plenty.