Settling a credit account

tenchiten

Hello,

I have just taken the free 30 day trial of Experian credit expert to check my credit score and I have one negative recorded there.
It says I have no successfully settled credit account.

I am considering opening a credit card account, using it for a period of time (always clearing the balance monthly) and then closing the credit card account.
Would this then show on my credit record as a successfully settled credit account and if so, how long a period of time would I need to have the credit card account open ? I was thinking 6 or 12 months but less would be better.

Thank you.

grumbler

I am pretty sure that an active credit card account is much better than a settled one.

tenchiten

Thank you for your reply.
This is whats confusing me. I have two active credit cards both of which have clear balances (I clear my cards every month) and one of which is platinum with quite a high limit.
I think the problem is I have not had any loans or cards which I have paid off and closed the account, all my accounts are active.

My interpretation of this negative on my credit score is that I have to have had an account which was paid in full and then closed, which is why I'm considering taking out a new credit card, using it for a while, clearing the balance and then closing the account.
It seems a rather convoluted way of removing this negative from my score but if that is indeed the only way then so be it.

Any ideas ?

grumbler

Don't overestimate what Experian tell you. Their score is meaningless. So are some advices.

Regardless, I think 2 months is enough for a CC to show in a credit file if you want a 'settled' record, but not all providers report to Experian.

tenchiten

Ok, thank you for your help.

The_Boss

If you get a new card with the objective of having a settled account, why not close the one you have at present with the lower credit limit? Only do this if you are successful in obtaining a new card.

tenchiten

Hello,

Yes I did think about that, but I read that the longer an account is held open, the more positive an effect it has on your credit rating.
Thats why I was going to open and then close a new one.

If however the new card has a much higher limit than one I already have then I will most likely do as you suggest anyway.

The_Boss

tenchiten wrote: »

Hello,

Yes I did think about that, but I read that the longer an account is held open, the more positive an effect it has on your credit rating.
Thats why I was going to open and then close a new one.

If however the new card has a much higher limit than one I already have then I will most likely do as you suggest anyway.

Settling a new account so soon could also be problematic in its own way. How long have you had your two active cards?

pqrdef

tenchiten wrote: »

It says I have no successfully settled credit account.

Just shows how desperate they are in their attempts to manufacture a product out of nothing.

tenchiten

The_Boss wrote: »

Settling a new account so soon could also be problematic in its own way.

Why would that be ?
I've had my two active cards for over 12 months.

tenchiten

pqrdef wrote: »

Just shows how desperate they are in their attempts to manufacture a product out of nothing.

Yes it does seem a little bizarre, but it is the only problem on my credit report.