Will a catalogue account make or break a credit report

GazNicki

For years I have been painstakingly getting my credit report, and that of my wifes, into something that is far more acceptable. The plan is that in a few years we will be in a position to buy a house.

Currently, our reports are coming in at "fair". We have some credit on credit cards, loans and catalogues that we are working towards clearing, and i've just landed a 0% card for myself that will allow me to pay off the balance of my exisiting one over the life with ease (based on the current repayments on the existing card now).

My question is with the Catalogues. I have a Very Account on my file. The wife has a few others. They have a tendency of upping the credit limits as time goes on.

Does the increased credit limit, provided it isn't used, have a positive or negative effect on our files?

I am happy to focus on tacking one or two up front with a view to closing them if we need to if they badly affect a credit file. But would like to know what to do for the best with them.

[Deleted User]

It's a positive in that it shows a lender trusts you, until it becomes a negative in you having too much available credit for your income.

The view of both of those will vary by lender.

GazNicki

Thanks, so would it make sense to limit the number of these on an account when they are all clear? Such as maintaining one on each file to show good credit handling, but not too many to show over-availability?

I'm assuming the same is applicable to Credit Cards too?

National_Debtline

Hi GazNicki

GazNicki wrote: »

I'm assuming the same is applicable to Credit Cards too?

Yes, and potentially to a greater extent than with catalogues, as the maximum credit limits involved can be higher.


Dennis
@natdebtline