What to do once Debt Free..

in Credit Cards
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Picard91Picard91 Forumite
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So I had two Credit Cards that have both now been paid off.

Best thing to do? I was just going to close the accounts but people have said to keep them active to show Credit on my score?

All the offers like 0% Purchase Fees, Currency conversion etc have now expired, so do I try re-negotiate? Close the account, get a new, what Will affect my score and what wont?

I am wanting to get a mortgage within the next 8 months as well so I want as little impact as possible.. but also the best benefits from a Credit Card... \

sorry for so many questions but its always great to get advice.

Replies

  • edited 7 August 2018 at 9:34AM
    zx81zx81 Forumite
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    edited 7 August 2018 at 9:34AM
    Your aim should be to build a good credit history.

    The easiest way to do that is to use a card or two regularly and clear in full each month. You don't need 0% deals to do that.

    Ignore your credit score entirely. It's not a reflection of credit worthiness and will upset you as it plummets while you build good history.
  • edited 7 August 2018 at 9:38AM
    Willing2LearnWilling2Learn Forumite
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    edited 7 August 2018 at 9:38AM
    Just spend freely on both cards. I mean, doing your normal groceries shopping, clothes etc. Just do the stuff you would do ordinarily.
    Stick to your normal budget. Then every time a statement comes, pay off each card in full.


    Edit: Well done on paying those debts down :)
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

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  • DobbibillDobbibill Forumite, Ambassador
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    If you pay off in full and on time when each statement is produced there is no requirement as you *won't pay interest.


    Use for groceries or travel costs - this will evidence that you are capable of managing credit responsibly.

    *assuming you only use for purchases which are not processed as cash nor any gambling transaction, foreign currency etc.
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