Should I close empty cards?

Loz1984

Hi all,

I'm after some advice here as i've been told different things by different people.

I have two empty cards and others with balances on. I am going to approach the zero balance cards r.e possible balance transfer offers first but....

If they can't offer anything am I best cancelling the cards and closing the accounts? Will this have any impsct on my credit rating?

Thanks,
Laura

Clariman

Generally speaking, closing down unused credit cards will aid your credit rating because it reduces the amount of "available credit" that you have. The flip side of the coin is that closing down unused cards increases the percentage of "used credit" that you have. Lenders look at both of those factors when assessing an application so heads you win tails you lose. However, having spoken to Experian and a lending professional, a high amount of "available credit" is more of an issue than percentage used, so close them down.

The other reason for closing cards down is that it means there are fewer opportunities for someone to do ID fraud if they find an old statement or credit slip.

Clariman