Credit Rating

Super_Ram · 26 November 2012 at 10:30AM

Hi All,

Not sure if this is the right place for this post but seemed the most suitable.

I am currently rebuilding my credit after getting into bad debt and coming put of an IVA. I have 1 year left before my IVA drops off my report and there is nothing else on my report that is bad.

However what I am looking to do now is to squeeze every ounce of credit building I can at the moment I am looking at total credit compared to available credit and have some questions.

I currently have a credit card with a 250 limit and one with a 800 limit. Each month for the past year at least I have been using these credit cards fully and then paying them off in full each month so it show I am using credit and also I am paying it off so don't get any interest charges each month.

I have however got myself into a situation where I do not need to use these Credit Cards anymore and have the money to fully pay both off and close the account. However before I do this I want to check what is the best option for my Credit Rating.

Option 1 - Pay both off and close accounts which good point is I cant spend on them but bad point may be my Available Credit on report goes down and also I am not using credit which essentially is hat builds your credit report up I am led to believe.

Option 2 - Pay both off and close the 250 limit one and reduce the 800 one down to around 200 which I will continue to use. Again good points are I have closed one credit card and removed 600 credit from the other so cant spend it however again my available credit would go down on report

Option 3 - Pay both off and only use 200 of one but means I will have all the available credit not used looking good on my report and I am still using some credit but then the money would still be there available to me so would need good will power not to spend it

So I am wondering which option is best or is there another option or in fact is there not much difference in doing any of them.

Any help would be appreciated