Credit card advice please

[Carthage]

I have three credit cards with three different banks, but only owe money on one.

In total, my credit limit for them is approx £35k (I have never, and would never borrow £35k on a credit card).

For the health of my credit score, is it better to:
1. Get rid of one or two of the cards completely?
2. Ask for my limits to be reduced a bit on each of them?
3. Keep all the credit limits they offer me, even though I don't use it?

Thanks.

[Mobile Chicane]

More information needed, namely how much do you owe on 'the one', and what percentage of it are you paying off each month?

If you're currently only paying off the minimum each month, that won't look good, regardless of the limits you were granted historically.

As an aside, a credit card is an expensive form of borrowing. If I were you I'd try and restructure that debt elsewhere.

[Piginapoke]

In general terms, its better to maintain a credit limit and not use it. Shows you are living within your means and financially responsible.

[Carthage]

Mobile Chicane said:

More information needed, namely how much do you owe on 'the one', and what percentage of it are you paying off each month?

If you're currently only paying off the minimum each month, that won't look good, regardless of the limits you were granted historically.

As an aside, a credit card is an expensive form of borrowing. If I were you I'd try and restructure that debt elsewhere.

I've got 0% for 22 months - and will pay it off in that time without problems (I don't pay just the minimum) so it's probably the cheapest form of borrowing I can access. Even the credit limit on that card is twice the debt, not sure why.

[Tyrewrecker]

Piginapoke said:

In general terms, its better to maintain a credit limit and not use it. Shows you are living within your means and financially responsible.

What about in real terms?

[bigandclever]

Carthage said:

For the health of my credit score

To what end?

[Carthage]

bigandclever said:

To what end?

Oh! That's a good question, and I hadn't really thought of it.
I suppose for borrowing for stuff I want to do in the future.

[bigandclever]

Sarcastic response, or not? Difficult to tell.

[Carthage]

bigandclever said:

Sarcastic response, or not? Difficult to tell.

I do have a problem with sarcasm, I admit.

But in this case, I am really this stupid.
I'm not too great with financial things, as I seem to lurch through life making one bad decision after another.

[Sarnie]

The key here is the % you currently owe Vs the amount available to you.

If you owe £5k on three cards with a total of a £35k credit available to you, thats 14% = good.

If you cancel two of the cards, and owe £5k on a £10k cards, that you borrowing 50% of what is available to you = not good.

Just keep the cards your not using and leave them alone.

[Carthage]

Sarnie said:

The key here is the % you currently owe Vs the amount available to you.

If you owe £5k on three cards with a total of a £35k credit available to you, thats 14% = good.

If you cancel two of the cards, and owe £5k on a £10k cards, that you borrowing 50% of what is available to you = not good.

Just keep the cards your not using and leave them alone.

Thanks - I don't owe very much as a percentage of the credit so that's good, then.
I'll leave them alone.

[Funk]

You may find the card companies with zero balance close your accounts anyway.

[Carthage]

Funk said:

You may find the card companies with zero balance close your accounts anyway.

Should I use them for small amounts then and pay them off each month?

[Funk]

The irony is that having cards with huge sums available on them may count against you; you have the potential to run up huge debt very quickly. Unless you're going to need those high limits, I would be inclined to reduce them down and as you say, use each card a little and then pay it off in full each month whilst you pay down the one with 0% interest over the next 20 months or less.

[Carthage]

Funk said:

The irony is that having cards with huge sums available on them may count against you; you have the potential to run up huge debt very quickly. Unless you're going to need those high limits, I would be inclined to reduce them down and as you say, use each card a little and then pay it off in full each month whilst you pay down the one with 0% interest over the next 20 months or less.

It's as if we've met.

I may need to have some credit available to me, but not £35k, so maybe I'll reduce the limits along with reducing the amount I owe on the one card. It's shocking how easy it is to get so much credit when you earn as paltry a wage as I do.

Thanks for your advice.