CREDIT CARD EXTRA

Everybody's Uncle,

I transferred my credit card balance over to a new credit card that offered
0% APR for the next 9 months. This was a smart way for me to eliminate my debt. My question is, should I close my first credit card? It currently has a zero-balance. I was going to automatically close it but I was told by a family member that they heard that it's a good idea to keep it open...that it looks better on your credit report that you have ALL THIS ADDITIONAL CREDIT AVAILABLE TO YOU...yet you decided to 'smartly' not use it. We will probably be purchasing a new house within the next 3 years, so I want to know which will look better on my credit report?
Thanks,
Natalie
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Dear Natalie,

You should not cancel your first credit card unless there is a fee or other consequence for keeping it active. Your family member advised you correctly. A history with credit activity, no late payments, and a low or zero balance when you apply for your mortgage will show favorably. You may want to pull your credit report a few months before shopping for your new home to allow time to correct errors (not uncommon) or adjust balances for the most favorable posture.

Best of luck on your future purchase.

Everybody's Uncle