Credit Rating Question?

Simon83

Just a quick question on credit ratings.........

What makes a good credit rating?

What makes a bad credit rating?


If you have a loan and settle it, how does this affect?

What about have credit cards, that have no balance outstanding....

Is it better to close the bank accounts with other banks that you no longer use?

rayday2

Having a loan or credit card and settling it improves your credit rating.

However, leaving the accounts open and not writing to close them even if you owe nothing can mark you down on your credit score.

Putting it cruedly companies look to see if you had a day to live how much could you go out and spend in one go with available limits etc

So if you have credit cards at zero and don't use them close the accounts.

Bank accounts are slightly different if you got rid of your overdraft but kept them open it shows good standing long term bank accounts.

Simon83

I use natwests current account

I use M&S credit card, I pay this off every month

I have a halifax current account with an overdraft limit of £200, I never use this but I have been with Halifax for 12 years...Should I get rid of the over draft then?

Anyway to check what other accounts I might have with other banks?

rayday2

You could request a copy of your credit report, to be honest a small overdraft like that I would keep it should not effect you too much it all sounds very good to me at the moment from what you have said.

Simon83

I'm nervous about requesting a credit report for some reason!


But I'm wanting to buy a house end of next year, so I guess it could be good to see what it says....

Do those free loopholes still work to gain one for free? also which would be the best to request one from

Simon83

ALSO, does been in your over draft affect your rating? it's an arranged overdraft though?