unused credit cards?

khampson

Hi i have 3 credit cards all with a 0 balance. I have £15000 available to me if I need it. Recently my credit rating has dropped, could having these cards open but currently not used cause my credit rating to fall. Also would reducing my credit limit on these cards help my credit rating?

Thanks Keith

Paully232000

I cant see that making anything other than a minimal difference to your credit profile. The only affect it may make is your ability to get more credit in the future should you need it, and this would be balanced by other aspects of your finances (any other financial commitments, wages etc).

If by, credit rating dropped, you mean your score given to you by one of the reference agencies, don't worry about it, its not important.

user1168934

It should have no effect on your credit rating.

MisterBaxter

If the accounts go dormant they are no longer reporting a positive payment history, nor are they reporting anything negative. You run the risk that the card provider will eventually close the account but the Credit Reference Agencies may well take the lack of activity in to account when they do their scoring.

If the accounts were closed by the card provider you don'y know how future lenders would view that period of inactivity.

It seems like a lot of people with limited but not necessarily poor credit histories struggle to obtain credit.

knightstyle

Are you sure they are still open and have the same credit available?
I have a Lloyds CC which hasn't been used for a while and they have now reduced the credit to £500 and say they will close the card in a month.