Close credit cards to improve score after missed payments?

SirSnogALot

Hi,

Background

I have had cashflow issues in my business for 6 months+. I used credit cards previously to survive, have had 4 cards in total, so I could transfer balances around interest free (as much as poss).

Despite keeping payments up for most of my financial problems, the last three months I have had missed/late payments due to just not having the money available to make minimums.

I kept the dialogue open with my lenders and made holding payments and now I have managed to consolidated into a loan. And clear the balances in full.

Looking at Experian these now appear as late payments rather than missed payments. And will soon be listed as settled.

Not ideal but could have been much worse.

My questsion is:

Would it be more beneficial to my credit score to close those accounts which have red marks against them or keep them open with zero balance?


Thanks,

SSAL

Thrugelmir

Makes little difference. The history will remain.

SirSnogALot

Does having more of your available credit being (potentially) used not affect your credit score?

DCFC79

SirSnogALot wrote: »

Does having more of your available credit being (potentially) used not affect your credit score?

You only see the score. If you have unused credit you might it's a good idea to close a couple.

Maybe have a read of the first thread in this forum, might answer some questions.

creditagenciesareajoke

one thing to note is that late payments on a credit card would stay on your credit reports for 6 years from the date that the account is settled, ie from the date that you close the account rather than 6 years from the date of the late payments. So I would close the accounts unless you think that keeping them open will give you more leverage to get the companies to remove the late payments.