Can paying off debts each month lower my credit worthyness?

strawbray

I posted my first post yesterday and wanted to check something with anyone in the know.

Over the last few months, I have been throwing everything I have to debt.
This included the following:

£2000 to Capital One (account now closed)
£2000 to Black Horse Finance (account now closed)

and I am still in the process of sorting out paying Santander £1150.

Nothing else has change on my credit reference file yet on Noddle, I have went from 4/5 to 3/5 despite paying these debts off.
If I am closing these accounts, does that effect the ?/5 rate they give you because you have effectively closed a line of credit.
I would have thought that paying of the debt was a positive thing rather than a negative.

I'd like to know from someone in the know.

DCFC79

It depends how often noodle is updated and yes closing accounts of credit is a good thing from a lenders pov. Have you checked the other cra's to see what info the hold.

strawbray

DCFC79 wrote: »

It depends how often noodle is updated and yes closing accounts of credit is a good thing from a lenders pov. Have you checked the other cra's to see what info the hold.

Yes, I have a free offer from Equifax for 1 month that I am going to cancel at the end of the month. They don't show anything untoward either other than those accounts becoming settled.
One thing I did notice though was an entry for 2 failed payments in November 2008 and managed to dig out the relevant statement to prove that this was not the case and raised a dispute. Strange because the same account appears on Noddle but without this errorness entry.