Improving Credit Score.

PaceThePixie

Morning All,
I have not used this site for more than 12 months (possibly 18 months), so if I am repeating a previous post then apologies.
I was randomly in my bank last week, discussing options, when the member of staff I was dealing with suggested that closing 'credit' accounts that are not used would improve my credit score. The latter being something I check every 5 or 6 years. Is this correct? It seemed odd to me.
I have 3 credit cards; two have zero owing on them (with access to £6,500 on them), and one is on a long term interest free repayment plan. I did also have a catalogue account which I had never used.
Thanks.

[Deleted User]

CRA credit scores aren't used in UK lending, so don't focus on that as a measure of your credit worthiness.

You need to demonstrate good credit management. So whether you should close accounts depends on the wider picture.

If you on!y have three credit cards, I wouldn't be looking to close any of them.

PaceThePixie

Thanks for your reply.

I have no idea what CRA is. Or creditworthiness. As I mentioned before I rarely check things like these credit score companies. I just wondered why a high street bank employee would mention such a thing. Besides the fact that all banks are agenda driven and corrupt as heck.

I have always had good credit management with my credit cards. Never missed payments. Always paid more than the monthly, and shifted to 0% when possible if larger sums were outstanding.

I was making an international payment at the time of this conversation too.

R.

[Deleted User]

A CRA is a credit reference such as Experian or Equifax. They are the ones to provide you with the pretend credit scores.

You need to check the data on your three credit files, but ignore the scores. Credit worthiness is now likely you are to be extended credit. The magic credit score numbers aren't related to that.

The bank employee wasn't telling you to close account because he is corrupt. It's because it's generic advice which may or may not be suitable for your circumstances.

PaceThePixie

Thanks for your reply.

I don't intend to check my files. I never do. No need to. I was just curious as to why a bank employee would suggest such a thing.

Thanks.

Hasbeen

PaceThePixie wrote: »

Thanks for your reply.

I don't intend to check my files. I never do. No need to. I was just curious as to why a bank employee would suggest such a thing.

Thanks.

Then you get posters coming on, saying they have been refused credit, loans, mortgage etc, because of something they did not know about or rectify on their credit files ?:(

Dobbibill

PaceThePixie wrote: »

Thanks for your reply.

I don't intend to check my files. I never do. No need to. I was just curious as to why a bank employee would suggest such a thing.

Thanks.

It's a good idea to check them, if only once every 6 months or so.

It gives you a good idea of what data a lender may be able to see when you apply for credit eg - apply/switch mortgage, personal loan, credit card. It will also show you whether or not your credit cards are being reported as dormant if you haven't used them for a long, long time and finally if you are a victim of identity theft, it will show you credit agreements taken out in your name.

It's free to check so maybe worth 15 mins of your time to check all 3.

DCFC79

PaceThePixie wrote: »

Thanks for your reply.

I don't intend to check my files. I never do. No need to. I was just curious as to why a bank employee would suggest such a thing.

Thanks.

You should do, you could nip any fraud in the bud before its started to get worse.

PaceThePixie

Dobbibill & DCFC79,

Thanks for your replies and concern that I should check my credit file. As I have no intention of applying for anything, I see no need to.

I have had my current credit cards & catalogue account for 20+ years, one credit card and catalogue which I have recently closed, as I had never used them.

I moved banks 18 months ago, for the first time in too many years

The only things I regularly watch and update for is my utility provider.

KR.

Butti

When I was looking to get a mortgage second time round (couple of late payments on credit file) there seemed to be two things lenders did not like.

1. A lot of debt
2. The potential for a lot of debt.

So I reduced my debt and I cut the limits available. I could still replace the washing machine if it died but couldn't just go on a bender buying a car and going on holiday to Australia. You could potentially take a blow to the head and still do these things!

I have two open credit accounts and an overdraft.

RG2015

PaceThePixie wrote: »

Dobbibill & DCFC79,

Thanks for your replies and concern that I should check my credit file. As I have no intention of applying for anything, I see no need to.

I have had my current credit cards & catalogue account for 20+ years, one credit card and catalogue which I have recently closed, as I had never used them.

I moved banks 18 months ago, for the first time in too many years

The only things I regularly watch and update for is my utility provider.

KR.

You may not be intending to apply for credit but that is not the only reason to check your credit file. In my opinion, checking your credit file is essential to detect evidence of identity fraud which can happen to anyone.

Your credit file will show if any credit applications or searches have been carried out in your name. If your file shows activity that you do not recognise you will be able to check this out and avoid possible serious consequences.

You do not need to sign up for the subscription services from the three credit reporting agencies themselves. You can check your credit files with the agencies free of charge as follows.

Experian via the MSE credit club
Equifax via Clearscore
Transunion (formerly Callcredit) via Noddle

The choice is yours.