What might increase my credit rating?

jetskiguy

I have just took out a loan to pay off my credit cards, i paid off the cards in full so there is nothing owed on them.

Now i understand having a credit card with a good balance that you have had for a few years can help increase my credit rating.

2 of the cards ive had for 2 years and the other ive had for about 1 year.

Shall i cancel 2 of the cards and keep 1 but cut it up so i dont use it? Just so its on my credit rating. Or shall i cancel all 3 of them?

HappyMJ

jetskiguy wrote: »

I have just took out a loan to pay off my credit cards, i paid off the cards in full so there is nothing owed on them.

Now i understand having a credit card with a good balance that you have had for a few years can help increase my credit rating.

2 of the cards ive had for 2 years and the other ive had for about 1 year.

Shall i cancel 2 of the cards and keep 1 but cut it up so i dont use it? Just so its on my credit rating. Or shall i cancel all 3 of them?

It depends on the offers they have. You need at least one card for your purchases over £100 to give you extra protection.

Cashback cards are good for running through all of your expenses and paying the card off in full each month.

jetskiguy

Two of my cards were just balance transfer cards, and the third one has no special offers offers on it like that

HappyMJ

All credit cards give purchase protection on goods and services over £100. Even if you just put a £20 deposit on the credit card and pay the balance in cash you get protection covering the full value of the goods or services purchased. Always use a credit card for at least some part of a purchase worth more than £100.

jetskiguy

ok thats brilliant, i think i will cancel 2 of them and keep the one that ive been with for the longest