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    • nyawton
    • By nyawton 14th Sep 17, 8:58 AM
    • 5Posts
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    nyawton
    Need advice please
    • #1
    • 14th Sep 17, 8:58 AM
    Need advice please 14th Sep 17 at 8:58 AM
    Hi Everyone,

    I have recently taken a Loan, to consolidate debt on two credit cards.
    Now I have cleared the debt on the two cards my credit score has gone up a little.

    The question I have is now they are at zero, would it be more beneficial for my score to close the accounts, or leave them open? I have no plans to use them again.

    And soon want to apply for a mortgage, so would leaving them open impact the chances or amount available via a mortgage.

    Thanks everyone, appreciate the advise.
Page 1
    • zx81
    • By zx81 14th Sep 17, 9:01 AM
    • 14,154 Posts
    • 14,846 Thanks
    zx81
    • #2
    • 14th Sep 17, 9:01 AM
    • #2
    • 14th Sep 17, 9:01 AM
    The first rule of credit scores is to ALWAYS ignore the score. It's generally meaningless and is a poor guide of anything.

    Having and using a few credit cards is a very good way of building history and showing lenders that you can handle credit, which is the important thing.

    Make sure you clear them in full each month.
    • nyawton
    • By nyawton 14th Sep 17, 9:09 AM
    • 5 Posts
    • 0 Thanks
    nyawton
    • #3
    • 14th Sep 17, 9:09 AM
    • #3
    • 14th Sep 17, 9:09 AM
    Thanks for the reply, would having them and not using them at all be a bad idea?
    • zx81
    • By zx81 14th Sep 17, 9:11 AM
    • 14,154 Posts
    • 14,846 Thanks
    zx81
    • #4
    • 14th Sep 17, 9:11 AM
    • #4
    • 14th Sep 17, 9:11 AM
    It would be pointless, as it doesn't show you can use credit responsibly.
    • Narkynewt
    • By Narkynewt 14th Sep 17, 9:24 AM
    • 118 Posts
    • 23 Thanks
    Narkynewt
    • #5
    • 14th Sep 17, 9:24 AM
    • #5
    • 14th Sep 17, 9:24 AM
    So keep them, spend a little on them each month (less than 30% of the limit) and pay back in full at the end of each month. When you come to get a mortgage they will see that you are good with your finances, don't max out any available credit and can pay what you owe on time.

    Just make sure you don't overspend or pay late as this will defeat the object!

    Good luck, my mortgage is currently going through, valuation is booked for Monday
    • nyawton
    • By nyawton 15th Sep 17, 11:53 AM
    • 5 Posts
    • 0 Thanks
    nyawton
    • #6
    • 15th Sep 17, 11:53 AM
    • #6
    • 15th Sep 17, 11:53 AM
    Thanks again for the replies, I understand now it is best to keep them, use them, and pay in full...

    One last thing though, Say the credit limit on both cards is 20k....would that mean I am likely to be offered less via a mortgage as I already have the 20k available via credit cards?
    • zx81
    • By zx81 15th Sep 17, 12:53 PM
    • 14,154 Posts
    • 14,846 Thanks
    zx81
    • #7
    • 15th Sep 17, 12:53 PM
    • #7
    • 15th Sep 17, 12:53 PM
    No, it's very unlikely to have an impact, especially if cleared in full each month.
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