Cancel credit card ?

langdale_2

Hi all,

I have been lucky enough to have got some money to pay off my credit cards, overdraft etc, when i have paid these off do i cancel the accounts fully??
I am wanting to improve my poor credit rating but not sure if it's better to have no credit cards or credit cards with no balance.
Any advice would be welcome!!

BeautyandtheBeast_3

in my cases as soon as the debts are gone im closing the accounts. virgin is already closed as i refused the interest rate increase, the others are chopped up into small pieces. i will keep one card for major emergencies but thats it!

well done on being debt free xx

bottleofred

I would advise closing them as settled credit is often better than unused credit.

rockstar44

I think the best thing you can do to improve your credit rating is to use the credit card for some food shopping or petrol & then pay it off in full the following month so that you don't pay any interest. Maybe reduce the credit limit depending on how high it is & whether you're worried that you might run it up again! I'd get rid of the overdraft though!

MoneyWasting_Expert

I would keep at least 1 credit card open, and use it for everyday spending, pay it off in full each month. This should make some improvements to your credit file, also the lender likely will reward you with increases in limit which also gets noted on your credit file again improving its overall appearance and credit score.

langdale_2

Thankyou for all the advice i would never have thought to keep one to use and pay off in full but think i will give it a go !!
I just hope this is the end to all my money worries.... i will never use credit cards and not pay them off....nightmare, i will sleep soundly again now!!:j