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Credit Score from old credit card
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Neo187
Posts: 284 Forumite

Hi all,
Some advice please! A few years ago, I started the long mission if being debt free (I was circa £20K in debt and in a horrible place). Anyway, doing miles better today, with one loan and one credit card outstanding. My credit score is still pretty awful, due to the late payments and defaults remaining from 4+ years ago when I was at the height of my debt. At the time, I cancelled my credit card which had a limit and balance of £8,000. However, I have noticed on my credit report, they still class this as 'open' with an available balance to spend now of £7,600 (I am still paying the remaining balance off of £400). I think this might be having a positive affect on my credit reports, as it shows I have a high amount of available credit on all, even though technically I do not. I have spoken to the credit card company, and they have confirmed the card is cancelled and account closed once I finish paying the debt.
My question is, should I focus on clearing my other debts first, and keep this credit card at lower repayments for some time, to help keep the fact I have 'available credit' on my report? Or does it have no affect whatsoever? Once I have finished paying, the card will report as being 'closed' on my account, and will no longer have the high amount of 'available credit'. I was aiming to clear this first over my other outstanding loan, but I might get this card down to below £100 and then do the slightly above minimum repayment for some time, if keeping 'open' might be a positive thing on my credit report, even though the card was cancelled 4 years ago?
Thanks
Some advice please! A few years ago, I started the long mission if being debt free (I was circa £20K in debt and in a horrible place). Anyway, doing miles better today, with one loan and one credit card outstanding. My credit score is still pretty awful, due to the late payments and defaults remaining from 4+ years ago when I was at the height of my debt. At the time, I cancelled my credit card which had a limit and balance of £8,000. However, I have noticed on my credit report, they still class this as 'open' with an available balance to spend now of £7,600 (I am still paying the remaining balance off of £400). I think this might be having a positive affect on my credit reports, as it shows I have a high amount of available credit on all, even though technically I do not. I have spoken to the credit card company, and they have confirmed the card is cancelled and account closed once I finish paying the debt.
My question is, should I focus on clearing my other debts first, and keep this credit card at lower repayments for some time, to help keep the fact I have 'available credit' on my report? Or does it have no affect whatsoever? Once I have finished paying, the card will report as being 'closed' on my account, and will no longer have the high amount of 'available credit'. I was aiming to clear this first over my other outstanding loan, but I might get this card down to below £100 and then do the slightly above minimum repayment for some time, if keeping 'open' might be a positive thing on my credit report, even though the card was cancelled 4 years ago?
Thanks
Started comping: September 2013
Wins so far: Cunard QM2 Cruise, X Factor final tickets, £1,000 Team build day, Dinner at the Ritz with Rolls Royce limo

0
Comments
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Don't worry about the score. It's not "a thing' as the current vernacular would have it.
Clear your debts in APR order - highest rate debt first.
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