Close cleared account?

LittleMissDetermined

Hi

I'm looking for advice on whether to close my credit card account or not. I'm about to make the final payment an I have a credit limit on this account of £9000.

I've not got a sparkling credit rating (not from missed payments or anything) but I think because I have no bills on my file, all bills, mortgage and even the mobile bills are in OH name.

Can anyone let me know what would be better for my credit rating? Close this account down or leave it open but dormant with the credit available?

It's safe to say the interest levels on this card (31.44%) means they won't be offering any 0% deals...

Any advice would be appreciated

LMD x

uncreative

Do you still have more debt to clear? There is no harm in leaving it open if you think that getting another card isnt going to be likely. BUT you musnt spend on it......

In 3 or 4 months time there is nothing to stop you phoning them up to ask for balance transfer rates or life of balance rates. Depending on the remaining debt you could transfer it all to this one card at a low rate and then set about clearing it as quickly as possible.

LittleMissDetermined

I have 4 other accounts to clear, this one was the one with the highest interest so I cleared this one first.

I would really like to improve my credit rating as much as I can whilst also clearing my debts.

uncreative

Hi, my experian shows that having a high credit limit is a plus point (my biggest credit card limit is £23,000), and having a lower utilisation of available credit is also a plus. However, thats their view and they wont be the ones that I ask to lend me money etc..

Improving your credit history takes time, and the primary reason for improving it is to be in a position to get more credit. from your signature you will be debt free in April 17, and from that date it will be another couple of months before your credit files show all clear balances.

I think that should be your only target to beat, most lenders and other CRA users such as landlords tend to take the base data from your credit report and work their own assessment out. The "scores" are only an indication.

LittleMissDetermined

That's great, thanks

DandelionPatrol

If you still have credit on other cards, enough to cover an emergency, I would suggest getting rid of this one. Though using this one to cover an emergency at 31.44% - ouch!

I think to keep it until you have enough credit headroom on another card.