Settle open credit card?

AlastairCunning

Hi guys,

I recently got refused a utility contract thanks to bad credit. Slightly ironic as I recently got accepted for a Virgin Credit Card with an £8,000 limit (obvs this was a contributing factor to my unexpected lower score) with a 0% interest rate which I've used to finance home improvements. I'm now close to the limit on that card.

I have another Barclaycard credit card I no longer use with a £5,000 limit.

When I investigated ways of improving my credit I was given conflicting info. On the one hand having lots of unutilised credit was seen as a positive. On the other, not having any 'settled' credit accounts was seen as a bad thing. By settling my Barclaycard account I'd solve one problem but maybe create another by reducing my unutilised credit capacity. Does anyone have any idea which of these two factors weighs heavier in the calculation of my score?

Thanks in advance.

[Deleted User]

Ignore the 'settled' credit agreement point. A card is meant to be used as a revolving credit line.

Lenders don't look at things the same ways as Experian do.

Keep both card and use regularly, paying off in full each month (unless on a promo). You certainly don't want to increase your debt to available credit ratio.

National_Debtline

Hi there, welcome to MSE.


It is difficult to say what would be best because credit files are complicated documents and there may be other things influencing your score - such as your age, whether or not you are a homeowner, on the electoral role and anyone you may be financially associated with (have you had credit with anyone before). (This is not a comprehensive list but a few additional points).


If everything else is in order the keeping your payments up to date and overpaying where possible should stand you in a positive credit position.


Laura
@natdebtline

AlastairCunning

Thanks for the responses, guys. I'm going to post another thread on a different topic related to this situation, so watch out for that.

AlastairCunning

Oh, and a further question. My Experion report only lists 2 of my 3 credit cards. An old one that I only occasionally use (and always pay off the balance in full) is missing. Should I try to update it?

[Deleted User]

You can't update it. Experian will only show what lenders report to them. If that particular card reports to another CRA (or not at all), you can't influence that.

AlastairCunning

Interesting. Thanks zx81.