Close old useless credit? Can it ever help?

[BreadAndButter]

I have 4 high APR credit cards, Ill never use them but due to my available credit with each (Around £7k on each) ive been able to get better cards

I dont use these cards

 

I have 8 other cards I also rarely use, all have between £2.5k-£10k available -  I like them for balance transfers on larger purchases, APR start at 7% upto 25%

 

So, with 8 'good 'cards, 2 I actually ever use, am I limiting myself owning these 4  poor credit high APR cards that I dont use?

 

For example, if i look to get a new card, low APR than I own, then they may look at my file and think I have too much credit available to me (£100k+) and so, i cant have a new card and more credit. One example TSB ,i should have easily got the card, they declined (they since rang me and said I could have it) but initially computer said no.

 

Is that a thing? To have to much available credit? To e, it sounds like a risk factor

[dx100uk]

Why have any of them at all?

 

get rid of them!!

 

stop applying for credit you dont need.

[BreadAndButter]

Well that's my choice isnt it?

 

I like credit eing there if we ever need it, car explodes, needs a new turbo, etc.

I can afford it so why not.

 

I want to have the best credit and rating for the best deals

[theberengersniper]

I'm no financial expert, but I have a few thoughts.

 

If you search around you'll find information that suggests you should keep your credit usage vs. credit used ratio at or below 30%. That's in the context of a single card, but I suppose you could extrapolate that out and say you should do that for all your cards. If you do that, then of course your total card utilisation will also be 30% or less.

 

My second thought is; are you certain these cards are all still active? A lot of credit providers will close the credit account after a certain period of purchasing inactivity. So it's possible, although you would have been notified, that some of those cards you've got stashed away won't actually be 'live' anymore. Credit providers don't have to warn you in advance of their intent to close your account either, only of the fact they have done, and that notification could have arrived electronically (edit - I mean this strictly in the context of an inactive account).

 

My third thought is in relation to your comment about having too much credit available to you. Yes, I think that is a thing. A credit provider may well see how many lines of credit you have and decide that you pose too much of a risk for them. Firstly, if I were a lender I would want to know why you needed all these lines of credit, that seems odd, and it would lead me to wonder whether you knew you were going to have to rely on them in the near future. You probably also fit the pattern of people with gambling or other problems. I would also be aware of the potential financial mess you could land yourself in very quickly, and on the basis of how many creditors you'll have, the new provider could easily find themselves at the back of a very long line of people trying to secure the return of their money.

 

Lastly, you're exposing yourself to fraud unnecessarily. The more cards you have, logically, the higher your overall risk is of becoming a fraud victim.

 

Once again, I'm very much a lay person when it comes to finance. It's just my tuppence worth.

Edited July 8, 2021 by theberengersniper

[BreadAndButter]

No, I dont agree with many points but appreciate the warning - I think excess available credit could hamper me but the research Ive obtained has been mainly Amercian info so I was after any further experiences.  I do know of one guy who blogs he has over 22 cards, rotates and makes the companies beg for his business, dump a card and return with new customer perks,  I have had some of that too when I joined barclays and american express all of a sudden cards came through the door like junk mail

 

For me, knowing the accounts are active isn't even a question, I do make one purchase on them every now and then to keep them rolling and I never go paperless so i can see for myself everything is good on all accounts. (more paper use is more trees too right?)

Im just very good at fine tuning and de-cluttering, so if im struggling to identify why I would be declined for anything I want to know why and how it can be improved and also I want the best apr/perks/cashback, always, which sometimes gets me stung (moving bank accounts for a few hundred quid incentive  hurt my file for a while, all ok now despite a certain Money Tips person encouraging penny pinching and volatility.)

 

I enjoyed American express cashback, few perks and made it work for me, purchasing anything things like fuel and calculating, hey thats worth 3p a litre plus shell points, 5p a litre saving on my huge travel costs at the time, no brainer if done wisely

 

Maxing out cards, not my style. Chasing a zero percent zero transfer fee 26 month card however I do see sense in, and Im nearly able to get that with Santander, but i know the accounts have gotta look good.

 

Ill give it some thought, pull the trigger on the cards that dont work for me, when i know i wont need access to any credit (which tbh i have plenty now to choose from) but i am always on the look out for a deal, so currently the Amazon card is appealing as it pays you each time you shop on amazon ,which I do many times a week, that could bring in a nice slice back for the ride then pay it off immediately, the APR is therefor irrelevant if fee free.

 

Cheers