Should I close my credit accounts?

ElouiseBrooke

Hi everyone,
I have a few credit accounts like Next and Very towards my name, all of which I have completely paid off. As well as this, I also have a credit card that I have paid off too.
I was just wondering whether or not I should close these accounts and what effect it will have on my credit score?

[Deleted User]

It very much depends on what other accounts you have.  Generally, it's advisable to keep them open.

ElouiseBrooke

Deleted_User said:

It very much depends on what other accounts you have.  Generally, it's advisable to keep them open.

Thank you for your answer, I also have a paypal credit account that's at 0 too and a student overdraft account which will be closing in September. So you would say it's best to keep them open? Could you possibly explain why it's better to keep them open? 

[Deleted User]

You want to show lenders that other providers trust you with credit. Having all your accounts closed raises flags.

Having two or three credit accounts, such as credit cards that you use regularly and clear in full so as not to pay interest, is the easiest way to build a good history.

Malkytheheed

Keep them all open. Spend a little every month (or every other month) on the credit card and pay in full every month. 

george9071

Closing them all in such a small time gap would make any potential creditors see you as a higher risk it's just not worth it, if you do want to close a couple of them i would suggest closing one and then waiting a few months and close another etc. But don't close them all because having these accounts gives more trust from current and future lenders. 

Emmia

I think there is also a question whether you trust yourself with the access to these accounts - with Next and Very,  you'd need to order items (which you may not need/want) and then return them (which will be a faff). A credit card is easier as you could use it for a food shop, or monthly subscription for something you use, and set the balance to be paid in full each month. 

Personally, if you don't think you need them I'd shut them over the course of a few months...