Should I close a store credit account?

Joanie_mac_2

I recently finally paid off a credit account I had with an online retailer. My credit limit on the account is currently £1,600 - I don't plan on using the account again due to the high interest and pretty poor quality of their clothes but I would like some advice on what to now do with the account. Will it be better for my credit rating to completely close it, leave it as it is or make a very small cheap purchase every month and pay off straight away?

Would really appreciate any advice!

boo_star

Joanie_mac wrote: »

I recently finally paid off a credit account I had with an online retailer. My credit limit on the account is currently £1,600 - I don't plan on using the account again due to the high interest and pretty poor quality of their clothes but I would like some advice on what to now do with the account. Will it be better for my credit rating to completely close it, leave it as it is or make a very small cheap purchase every month and pay off straight away?

Would really appreciate any advice!

If their products are crap, why would you want to keep buying from them?

Get a CC and put a few quid on it a month (paying it off when the statement is produced obviously.)

Store cards are like the gift voucher version of cash.

solentsusie

I agree with boo_star


Use the MSE credit card checker and see which credit cards you will be most likely to be accepted for. Better to have one of these than a store card that is of no use to you.


If you leave it open you will just be reported as up to date each month so no major problems there, but any lenders will take into account the amounts of credit available to you when making a decision to lend to you.


Good luck.

DCFC79

Close it, it wont be better for your credit rating as lenders cant see it.

Ben8282

Don't make small purchases and pay them off just for the sake of it especially if you don't really want the product.
As to whether to close or keep open there are many factors to consider.
If you have lots of credit accounts and lots of available credit close it. If you have few credit accounts or little available credit keep it.
If there is any adverse payment history on the account keep it open.