Best way to repair my rating

sambuca9

Hi all


After spending the last 5 years paying of a huge amount of debt, I am in the final straight. I want to start to repair my credit rating and wanted a bit of advice on the best way forward.


I have four credit cards (balances listed below with limits)


Tesco 0 /1800
Capital one 0/1000
First direct 0/500
Nat West 2400/3600


I also have a free £250 od which I do use sometimes but it never shows on my credit file.


All my loans (of which there have been many!) are paid off. I have no defaults or CCJ's and the only marks on my file for late payments and/or over my limits was from an old Lloyds CC that was paid off and closed in 2010.


So, do I close some or all of the CC or should I leave them open showing that I have available credit, but do not use it all? As the capitone care is for repairing/bad credit, should I close this one or leave it?


I use my first direct card each month for my petrol spend but pay in full each month and the NW card is my last debt to be paid off.


Any advice would be really appreciated.


Thank you

DCFC79

I refer you to my signature

sambuca9

Thanks for the reply, I used the wrong term with the word "rating", I am not talking about the score that they give you. I am looking forward and wondered what would look best from a lenders point of view, have open available credit, or close some or all of them down.


Thanks

Candyapple

Personally I would close down the First Direct card and also the Cap One card - reasons being that their credit limits are the lowest and if you applied for a new card, potential lenders whilst not seeing the name of the card provider, would probably know it was a sub prime card as they are the ones who tend to give low limits. With FD card, in my experience, once they give you a low limit it is very hard to get them to increase it. In my experience I ended up having to close my FD card and then apply again in 6 months time only for them to give me a credit limit of £5k more than what my original one was. Go figure.

So I would close those two, clear the Natwest one and when that is on zero close that as well because Natwest are rubbish and apply for the Santander 123 card as that way you can at least get paid up to £9 per month for putting your petrol in and using that card for it.

sambuca9

Thanks for the reply Candyapple, really helpful. The FD card limit was reduced gradually at my request as it helped me focus on paying it off but I do see what you mean with the limit being really low. I will close the capital one card, it is a really high APR anyway.