Should I close some accounts to help credit ratings?

NorthantsPete81

Im always wanting the best 0% deals for transfer.


I have over £42k of available credit, whilst onlty using £7k of it.


So, my ratio is 'positive' in that ive got £35k available credit


but could this be going AGAINST me? Some ar eopen because they have high credit limits

ie. Amex £7500
Vanquis £9000
Aqua £11000


but they never give me deals - would they be better off closed?


OR
should I appy for more guaranteed acceptance credit cards and increase my ratio further (ie. capital one, ocean finance etc.)


I wanted a loan for house improvements for £20k but was declined, so Im wondering if they have evaluated my available credit which could potenitally put me £70k in debt if i drew out on all?


The only bad thing i could see on my file was that Barclays upped my credit limit (noddle said this was a netative)


So, totally hyperthetical, if I had £100k avilable credit, yet I only used £1k of it, would I have better chance than someone who had £10k credit and used £100

[Deleted User]

NorthantsPete81 wrote: »

So, totally hyperthetical, if I had £100k avilable credit, yet I only used £1k of it, would I have better chance than someone who had £10k credit and used £100

It would depend on the hypothetical incomes of you both.

LMS94

NorthantsPete81 wrote: »

So, totally hyperthetical, if I had £100k avilable credit, yet I only used £1k of it, would I have better chance than someone who had £10k credit and used £100

Not necessarily. Who's to say you don't go out and blow the whole £100k in one go?

[Deleted User]

Ignore the scores and ratings as they are made up

What is the incentive for closing some accounts down?

NorthantsPete81

that is my question - do i benefit by closing them in the hope of better deals r should I keep them open and empty?




does it harm me to keep them open or closed?


Income £50k, partner £12k

[Deleted User]

On that income, I'd keep them.

Willing2Learn

NorthantsPete81 wrote: »

... do i benefit by closing them in the hope of better deals r should I keep them open and empty?

does it harm me to keep them open or closed?

Income £50k, partner £12k

I agree with zx81, I would keep them open too.

Why are the accounts always empty? It would look better on your credit history for you to use the cards. Just pay for the normal stuff on the cards, expenditure that is within your normal monthly budget. Then pay off in full after the statement is received and before the due date.

NorthantsPete81

Yes, doable. I just dont use them as theyre expensive but I could use them more regularly if it would be worthwhile. I dont use them as I dont need them and i try not to use credit if i dont need to.



Is it really worth using them? Does it make mushc difference as I have balances on my others and regularly pay to them without fail

NorthantsPete81

Willing2Learn wrote: »

. Then pay off in full after the statement is received and before the due date.

Is that the same as setting my direct debit to pay in full each month? OR will i get charged interest?

Willing2Learn

That is exactly what a DD does, as your DD will pay the full balance due before the due date.

And I di not realise that you had other cards too. Cards that you are using and thus, evidence of successful credit account management. In that case there is no need to spend on the sub-prime cards...

Thrugelmir

NorthantsPete81 wrote: »

The only bad thing i could see on my file was that Barclays upped my credit limit (noddle said this was a netative)

The more available credit you have the greater danger you pose. If you decided to go on a spending spree then default. Having large available facilities tells a lender nothing. Other than influence what they might offer you if you were to apply for a credit facility. Risk is priced.

I wanted a loan for house improvements for £20k but was declined, so Im wondering if they have evaluated my available credit which could potenitally put me £70k in debt if i drew out on all?

Then I suspect you are barking up the wrong tree. Base points are LTV, affordability etc. In conjunction of an overall assessment of your credit profile.