Close the accounts or keep them open?

MamaHG82

Over the last few years I got myself in some silly debt. Store cards, catalogues, high interest credit cards. It got a little out of hand as the interest rates were extremely high and with paying the minimum payments, it could take me over ten years to pay them off! Even more for one of the credit cards (aqua)
I have taken out a low interest personal loan and paid them all off. My loan is over 36 months and the monthly repayment is affordable for me. I’m just happy that in 36 months time I will be totally debt free. Seems a long way a way but at least I can see a light at the end of that dark tunnel!

Basically what I needed advice on is the accounts I have paid off. I never want to use them again. Is it best for me to close them all? Or would it do my credit rating better to keep them open and not use the credit?
I won’t be tempted as I know how toxic they are.
I did read somewhere that keeping them open would look better on my credit scare as it would show I have credit available but am not maxing it out.

Any advice would be great thank you

[Deleted User]

If you're not going to use them then close them.

Your score and rating isn't a factor used in lending decisions and will likely plummet when you close the accounts, but fear not.

Willing2Learn

MamaHG82 wrote: »

...Basically what I needed advice on is the accounts I have paid off. I never want to use them again. Is it best for me to close them all? Or would it do my credit rating better to keep them open and not use the credit?
I won’t be tempted as I know how toxic they are...

It is always useful to have a couple of credit cards as it makes the data recorded on your credit files look more positive. But, if you are saying that you do not have the necessary money management and budgeting skills, then you should cut the cards in half and stick them in the bin.

Edit: And welcome to the forum MamaHG82