Pay them off and keep them?

dunkymunky

I am finally in a position to be paying off some credit cards and overdrafts I've had for a long while. Is it better for my credit score to pay them off but keep the accounts open or pay them off and close them?

Its not a case of will I be tempted to use them if I leave them open, I've grown up and got some will power now just want to know what would be best for my credit report, or if it makes no difference

Thanks

The_Boss

dunkymunky wrote: »

I am finally in a position to be paying off some credit cards and overdrafts I've had for a long while. Is it better for my credit score to pay them off but keep the accounts open or pay them off and close them?

Thanks

Please read my signature.

dunkymunky

thanks, but didn't really answer my question. Allow me to reprase. Will lenders look more favourably upon me in the future if I pay these off and keep the accounts open or pay them off and close the accounts.

Tixy

It is a good idea to keep some active credit accounts. It helps demonstrate a positive credit history if you need to apply for credit in future.

If you closed off these cards/overdrafts would you still have any other credit accounts on your file?

If not then I would keep at least 1 card open and use it regularly for small amounts and pay in full each statement.
Keeping a card open but not using it won't help maintain a credit history.