Score hit by multiple credit apps: what can I do except settle card & loan?

zoothornrollo_2

So I've recently had a bit of a nightmare with Chelsea Building Society releasing extra mortgage borrowing for a loft extension (long story).
With the result that building work started (and is pretty much finished) so I had to take out a money transfer credit card and a personal loan to pay them.
Before that I had already recently taken out a 0% spending card for any surplus expenses that might crop up.
So within a 2-3 months I had applied for four separate lines of credit and that has hit my hitherto pretty much perfect credit rating.

The loan was the last thing I applied for and I did not get the best APR on offer - first time that's happened.
Just checked with the MSE credit club thing and it is down to 918 from something like 998 previously.
I have just received the mortgage cash and have paid off both money transfer card and loan.

My questions are:

1) Will my credit score immediately improve as these settlements are registered with Experian? I have heard that credit applications remain on your report for about a year - but is this even if you have paid them off? Or closed them?
2) Should I close the credit card or not? I have heard that lenders don't like it so much if you are quick to exit products. I have two other cards currently - Halifax Clarity for hols and AA for spending (both zero balance at mo).
3) is there anything else I can do to recover my score?

Thanks.

DCFC79

What is exactly on your history as this what lenders can see. Your score is worthless as only you can see, it has no bearing on whether lenders accept you.

Theres 2 other agencies who some lenders can use.

zoothornrollo_2

DCFC79 wrote: »

What is exactly on your history as this what lenders can see. Your score is worthless as only you can see, it has no bearing on whether lenders accept you.

Theres 2 other agencies who some lenders can use.

Lots of things are on my credit report, all the usual stuff. My recent applications for credit, among other things, as you'd expect.
But this doesn't tell me what it is that has dented my creditworthiness.

[Deleted User]

The additional borrowing would have made you a little higher risk, but that has now gone away as you have cleared it.

The CRA score in no way reflects your credit worthiness. Credit scores hate change - if you borrow money, or pay it off, take out credit or close credit, your score will drop.

Lenders take a very different view.

Ben8282

Your ability to obtain further credit will have been temporarily affected by the multiple hard searches in a short space of time, taking out a new card and loan, and by the balances that have appeared. You don't say what the total amount of the new balances are but if the loan was for building work I imagine the amount may be significant.
If you were to apply for a new card/loan tomorrow, your chance of obtaining it and/or the interest rate offered and/or credit limit offered and/or the duration of any promotional rate will be affected by this new credit. The potential lender will wonder why you are taking out all this new credit in so short a time. Are you experiencing financial difficulties? Can you afford the repayments? etc
Just leave things alone for a few months until you have demonstrated that you can afford your new credit commitments.
I can see no reason to cancel the new card or repay the loan. Why would you wish to do this except to improve your 'score'? Why would you want to improve your 'score' other than to take out another credit card or loan and thus go back to square 1?
Instead of leaving the other 2 cards unused with 0 balances, use them each month for purchases and pay in full by the due date. You can keep your money in your bank a bit longer and earn interest on it. You can also demonstrate that even with the new credit commitments you still have money to spend (and repay) each month. Cancelling either of the other 2 cards at this time is not recommended.

zoothornrollo_2

Ben thanks that's very helpful.
I wanted to pay off the loan because I was within a grace period that meant I dodged any early repayment charge - I just returned them the £15k.
The credit card I took a £10k money transfer out of, which is now also paid off, but will not close as advised.
Yes will start using my AA spending card for some purchases and pay off in full each month.