Keep cards or close account?

dlake0001

Hi guys,

Sorry if this is the wrong place for this thread but I have a question and I'd like some advice. About 8 years ago I had a really bad time and ended up with a terrible credit rating. Anyway, I've since managed to pull myself out of all the trouble and am in a position to pay off completely the 2 loans and 2 credit cards I have left but my rating is still through the floor. What I was wondering was, when the 2 cards are paid off, is it best to leave them there showing a balance of zero or is shutting the accounts completely the best option? Which way will look best and help improve my rating? I've no intention of running out and getting loads of stuff on credit but I want to rebuild so that some time in the future I can realistically be considered as a safe bet for a mortgage or something equally important.

Sorry to !!!! on a bit, but any help at all will be really appreciated.

Thanks
Darren

GeorgeUK

To rebuild your credit rating it is best to show that you are able to make repayments on time. Keep one of the cards open and make a small purchase on it each month, then pay it off in full so you don't get charged any interest. This will show that you are able to make repayments in a timely manner and should start to improve your rating.

dlake0001

Thank you, appreciate that. That's really helpful.