Better to settle a credit account, or leave open for utilisation?

Aethelwulf

I've noticed on some credit report summaries, having a settled credit account is considered a positive. And is noted as something that is 'missing' on mine. I've recently used a money transfer card. I'm wondering once that is paid off, should I leave it open to keep my credit utilisation lower.. Or close it?

[Deleted User]

Both.

Settle it and keep it open.  Use it from time to time.

Don't worry about the CRA advice. It's based on outdated recommendations on settling mail order accounts. It doesn't apply to credit cards, which are ongoing credit.

Aethelwulf

Deleted_User said:

Both.

Settle it and keep it open.  Use it from time to time.

Don't worry about the CRA advice. It's based on outdated recommendations on settling mail order accounts. It doesn't apply to credit cards, which are ongoing credit.

Ohh, I thought settling something was paying off the balance and closing it.. So when a balance is paid on any credit it's considered settled?

[Deleted User]

Yes.  There's no need to close it unless you have too much credit available to you.

coachman12

I add the same as all the other comments. Once you've paid off in full, leave it open , at least until you find you may have several cards in the same state (in which case, close some of them). I particularly agree with the point made by zx81 that it would be advisable to use the zero balance card for small amounts every 3-6 months and pay off within one month.

Aethelwulf

Deleted_User said:

Yes.  There's no need to close it unless you have too much credit available to you.

And by too much you mean, there's too much temptation to spend it/use it?

Aethelwulf

I particularly agree with the point made by zx81 that it would be advisable to use the zero balance card for small amounts every 3-6 months and pay off within one month.

Sorry what do you mean by this?

coachman12

Aethelwulf said:

I particularly agree with the point made by zx81 that it would be advisable to use the zero balance card for small amounts every 3-6 months and pay off within one month.

Sorry what do you mean by this?

Well, it means you use the card you kept after a few times each year, just to let the Credit Card Company you're still alive and it still appears on your credit history; but when you DO use it occasionally, you make sure to clear the balance again back to zero before the first monthly account accruing interest.  I can also draw a diagram if needed