Should I close credit accounts to improve credit file?

NatalieC87

Hello

I have taken out a loan with Barclays for the exact amount of outstanding debt I currently have.

I have paid all of my open credit accounts with the loan.

Now the question is should I close all of the accounts?

These are the open credit accounts:

Very - Have already asked for this to be closed.
Barclaycard
Capital One Credit Card
Overdrafts - Asked for one to be completely removed and the other reduced.
Store card - I have already asked for this to be closed.
Store card - I have already asked for this to be closed.
Store card - I have already asked for this to be closed.

I have not gave notice to close the credit cards. I was going to to keep the Barclaycard and close the capital one.

Is this a good idea?

If I do on my credit file it will show the following credit accounts as active:

1 x Vodafone Mobile Phone
2 x Barclays Accounts
1 x Barclaycard
1 x Barclay Loan
1 x EE account

What do you think?

I will never use the Barclaycard unless it's to make a large purchase for the credit card protection. I never want to any debt once this loan is paid off in two years time.

Sorry that this is so longwinded.

Thank you for reading.

[Deleted User]

Depends on your income, and longer term plans. It's important to demonstrate long term financial stability, but how you do that depend on your circumstances.

Thrugelmir

Closing unneccessary accounts is always sensible. As there's no plus factors in terms of how a lender will appraise you in the future by having them open.

LplateSaver

I wouldn't get rid of the overdrafts, because it doesn't stop you using the money and unplanned charges are always more than planned charges. If you ever need an emergency loan/mortgage etc in the future having unused overdrafts will lower your debt to credit ratio making you look better. Same with cc, don't close them, use small amounts on the (eg groceries) and set up a direct debit paying them off in full each month so you wont have to pay interest. Not sure which one you have but one of the capital one ccs gives cashback for using it, so you could earn £100 yearly for being financially responsible..