Which is better for credit rating?

jojitsui

Hi all,
Which looks better when having a credit check?
3 seperate debts (2 small ones totaling £400 and one larger one £3k)
1 larger debt (combination of the 3) or does it really make a difference??

Thanks

lisyloo

If you have no other history then I'd say 3 is better than 1.
However if you have mortgage, catalogues account, mobile phone, other closed accounts then I'd say it wouldn't make much difference.

I have about 20 accounts on my file (most are closed).
This covers mortgage, credit cards, phone, catalogues account, current account etc. so it's not excesive for 6 years.

Remember there is 6 years history on there, so lenders can see how you've managed credit. So any accounts closed in the last 6 years will show.

If you are young and have had no other credit, I'd say 4 will give them more to go on than 1.