In the eyes of potential creditors......

ferry

Just curious but in the eyes of creditors is it better to have a few credit accounts on a credit file with small amounts on or just one account with a large amount of debt?......or is that not a deciding factor?

F

InsideInsurance

What sort of credit, if variable like credit cards or overdrafts, then the total available credit is also a consideration.

Generally, all other things being equal (eg utilisation rate) and assuming there is "enough" other history then a single large account is better than multiple smaller ones

To caveate it, all lenders make their own decisions and own preferences

Anthorn

ferry wrote: »

Just curious but in the eyes of creditors is it better to have a few credit accounts on a credit file with small amounts on or just one account with a large amount of debt?......or is that not a deciding factor?

F

How long is a piece of string? What you gain on the roundabouts you lose on the swings and vice versa. etc. etc. There is no such thing as a universal good credit report. Potential lenders vary in the parameters they use to arrive at a decision.

You'll need something on your credit report but whether one big one or several small ones are better is anyone's guess. I'd say that the historical record going back several years is better regardless of the type and size of existing credit.