Pay off ALL c/card debt or keep small balance

pickledpenguins

Hi,
Sorry if this is a semi duplicated post from DFW thread but I was hoping someone could help with my query.
I am in a position to pay off my credit cards,there has been a couple of missed payments lately that DO show on my credit file.
Am I better off repaying the cards in full or leaving a small balance to pay of gradually over a few months to make my payment history look better?
I would prefer not to use the cards again ie use for petrol and pay off in full each month but need to know what is the best option.
I am certain I have read an article about it here but I can't for the life of me find it!!
Many thanks for any help!!

[Deleted User]

Pay off in full. Then use occasionally and pay off in full.

I know you say you don't want to do the second bit, but it's the only way to develop a good history,

pickledpenguins

Thanks! Would you suggest doing this on all (6) cards!!
I have a feeling that the answer will be yes,then there won't be any sign of the dreaded red dots on the credit report.

[Deleted User]

No - one is fine. The history will stay there whatever you do, but you now need to demonstrate you can handle the credit. Doing it on more than one card won't make a difference.

Close down a few of the cards as well. Keep the best 2 (ie any cashback, rewards, or those renowned for good offers - eg MBNA). If you've got a big total limit kicking around, lenders won't want to give you more in the future.

Hax

You need to be aware that whilst Experian only show the last three years of account activity, CallCredit show the last six!

Also, with Experian (maybe the others too - not sure on that!), if you spent two years pushing the red dots further into the history and then closed the account, the red dots would still be visible for a further SIX years as Experian show the last three years of account activity and keep closed accounts around for six years after closing.

I'm currently trying to get rid of the red dots on my old Citicard (now Opus) CallCredit report - that's the only account that didn't enter default when I had problems and because of that, it's the only account that still shows as being badly run - the defaulted ones have long since gone. If I had the chance to do it over again, I would let that account go into default too - then I wouldn't have ended up with a balance more than three times the credit limit because of the charges being added on.... Grrrr -anyway - that's a different story!

pickledpenguins

Thanks Hax,
I was thinking of keeping the Virgin (MBNA) and LTSB plat only because I bank with them.
I also have a dreaded Opus card!!
Think I will pay them all off and make small purchases on MBNA & LTSB and clear each month.

Our new budget enables us to put £150 a month into an 'emergency' fund so the need to 'spend' on the cards will not arise.

The only issue was with car insurance and phone contract applications etc but thinking about it I have been with Orange on contract FOREVER so will not change that and car insurance I can pay off in full.

I am hoping this is the right way to go please advise me if it isn't!!!

Also if anyone can find the article on MSE relating to this please let me know where it is!

Thanks for your taking the time to read this!