Close accounts or keep open?

nkkingston

It won't look worse over here. There's a weird thing in the US where closed accounts can count against you (but you can also get 105% mortgages over there, because apparently they learn nothing from the last financial crisis), so you do sometimes see the advice to keep them open online, but it doesn't really apply in the UK - having open credit accounts only has a positive impact on your credit report if you've never had any credit before.

EssexHebridean

Bedsit_Bob wrote: »

Why would having less available credit, look bad?

The OP is asking because she didn't know. There is a lot of discussion here and elsewhere about using credit cards to rebuild a poor credit history - it's not entirely surprising if people aren't clear on the truth behind everything that gets said!

For a sense of balance - for someone who is debt free and knows that they can resist the temptation to spend on a card just because the credit is there, a credit card paid in full each month can be a fantastic thing - particularly if it pays cashback or other rewards. Meanwhile there are others who know if they are honest with themselves that they would simply be drawn into debt again who should indeed follow the "never having a CC again" route.

kindofagilr

EssexHebridean wrote: »

The OP is asking because she didn't know. There is a lot of discussion here and elsewhere about using credit cards to rebuild a poor credit history - it's not entirely surprising if people aren't clear on the truth behind everything that gets said!

For a sense of balance - for someone who is debt free and knows that they can resist the temptation to spend on a card just because the credit is there, a credit card paid in full each month can be a fantastic thing - particularly if it pays cashback or other rewards. Meanwhile there are others who know if they are honest with themselves that they would simply be drawn into debt again who should indeed follow the "never having a CC again" route.

Agree and there is also people who have empty cards kept open who are paying debt off still, but they keep them open knowing the card providers will send them 0% offers to move the debt around when the current offer expires - IE me