What to do once Debt Free..

in Credit Cards
3 replies 630 views
Picard91Picard91 Forumite
67 Posts
Third Anniversary 10 Posts Name Dropper Photogenic
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.


  • edited 7 August 2018 at 9:34AM
    zx81zx81 Forumite
    35K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    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
    6.3K Posts
    Seventh Anniversary 1,000 Posts Name Dropper Photogenic
    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.

    I love my job

  • 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.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.

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