Credit score advice needed please

go4it

right... as of last week I had 3 credit cards, 1 loan, 2 store cards, 1 current account. I start a new job in september, and in the meantime to help my finances my mother (bless her) has transferred the debt from my credit and store cards onto one of hers (she got a deal of 6.8% for life APR). I plan to never ever use those credit or store cards again. However, I was going to close them all but my mum said to keep them open as that will look better on a credit search, i.e. he's borrowed money but has paid it all back. which is better, shut down for good or keep open and just not spend???

Warriorsith

Keep them but reduce your limit to somethink like £200, then each month purchase an item from tescos for a £5 then repay that £5 prior to the end of the month, your credit file will look amazing.

Just don't get tempted to increase or overspend on your CC and end up like you have already, stong willpower and then realization that debt isn't too good for you or anyone in fact.

milliejon

I've been waiting for the answer this question. Thank you.

Donedoingdebt

The more available credit you have on your file could count against you in a credit search as it will be seen as debt you could easily incur plus whatever you're being searched for ie another cc or loan etc.

southernscouser

I disagree. I think you should close them. The more cards and high limits you have the more potential debt you have.

If you can be trusted apply for a card that offers you cashback for purchases, providing you pay the balance of in full each month.

go4it

thanks for the replies guys :T

still in 2 minds. I could reduce the limit to say £200 on each and keep them open. But I couldn't be done with the statements coming each money and having to file them etc, I'd rather just close them and be shot of them.

even if I reduce my limit, there is always the potential that it could be increased. Someone may look at it as 'well he has 4 cards with low limits, what's to stop him trying to increase his limit'.

I think what I'll do is close them all except one, and keep one active for petrol etc, paying that off in full each month.

slowly on the road to being debt free! :rotfl:

Warriorsith

Yer, I'd keep one that's what I plan to do with my cards. But I never let the limit increase as I've experianced that before and was a silly beggar with it.