How much would my credit score improve if I paid a credit card off

Rachsct21

Hi

I've got a really poor credit rating and currently in a dmp but one of the creditors barclaycard have refused to renew the dmp, they've kept the interest frozen but are marking my file as missed payments and could potentially result in a default which will probably completely wipe out my credit score. With Experian it says my score is 77 and with clear score is 356. If I pay this barclaycard off (£2400) how do you think it would improve my score? I'm trying my hardest to improve my score and really don't want it to go any lower. In desperate need of advice

[Deleted User]

It will probably drop further when you clear the card.

Credit scores react negatively to change - which is why they are meaningless and can be safely ignored. They are not seen or used by anyone. You just need to manage your credit well.

Once you are out of the DMP, live within your means. If you use a card, clear in full each month.

Anthorn

No to ZX81's post: If you clear the card it will reduce your overall credit utilisation. If you close the credit card account it will both reduce your credit utilisation and become a settled account. Each will improve your credit report, the latter being best, but not by any great amount.

The credit score itself is an indication of what a lender might find if they used the same algorithm. Therefore it's useful as an indicator but no more than that.

Rachsct21

So if I cleared this card I should hopefully start to see my score improve cause all my other payments are made on time it's just barclaycard wouldn't renew my dmp so are marking me down as missing payments because I'm not making what they think should be the minimum payment

Shakin_Steve

If you owe Barclays £2400 and you have it to pay, surely it's worth doing just to get rid of the debt and for peace of mind?

Anthorn

Rachsct21 wrote: »

So if I cleared this card I should hopefully start to see my score improve cause all my other payments are made on time it's just barclaycard wouldn't renew my dmp so are marking me down as missing payments because I'm not making what they think should be the minimum payment

Don't understand.

If you pay off the Barclaycard account and then close it the account will become settled. If you pay off the Barclaycard account and leave it open the account will become up to date. In both cases late/missed payments will remain in the history of the account until the account drops off your credit history. In both cases Barclaycard will not be a part of the DMP because you won't owe them anything.