PayPal credit not needed as original item now - do I have unnecessary credit, is this bad?

Graham1982

Hello everyone:

Sorry if this question is ridiculous, to spare you the boring details (or to paraphrase them) four years ago or so I was in a financial black hole with servicing debts such as credit cards with minimum payments, having to use store cards to purchase essential items, still in student overdraft from 2006 even though it was 2017 etc. Anyway I got to grips with it, sorted it out and now have one consolidation loan with a high street bank, a credit card that is used for big purchases and then paid off in full each month and a well paying job overseas. I have an Argos store card that I don't use but was advised on here to keep as a line of available credit but don't use it.
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So the reason for all of that information was that I am concerned with looking good to lenders when I come back to the UK and want to get a mortgage (perhaps).

Right issue at hand:
Purchased using PayPal credit an item worth £650, an expensive child's ride on car, I can afford it, it was a one off present for my daughter. I had/have the funds at all times to clear the balance. OK found a seller that accepted PayPal credit got the agreement with PayPal who lent me £800/850 can't remember which to purchase the car (four month interest free payment). Was told by the seller (a retail outlet) vehicle was available and ready to dispatch the next day, took money and then when I chased they said I was mistaken it is coming from China next month, it didn't I opened a dispute, the dispute rumbled on, I won, funds returned to me. 

So I read somewhere on here that I should not get credit if it isn't needed i.e. if I got a bank loan to buy a car and then I don't and the money sits in my account this is a bad thing to do (type of thing). So I now unintentionally have credit I don't need. Will this be seen as poor financial management on my part OR to mitigate this should I spend it and then repay it as per the terms so that it looked like I needed it?

Thanks

Graham
PS The car is difficult to track down from other suppliers so this is not an option. 

[Deleted User]

Having available credit is fine.

Carrying a balance unnecessarily isn't a good idea.

Graham1982

zx81, thank you:

So in simple terms do you mean if I had a 7k credit card bill and was paying the minimum but had 10k in savings, that would be unnecessary balance carrying?

So I could keep the facility as long as there is no balance?

dr_adidas01

Graham1982 said:

zx81, thank you:

So in simple terms do you mean if I had a 7k credit card bill and was paying the minimum but had 10k in savings, that would be unnecessary balance carrying?

So I could keep the facility as long as there is no balance?

If you are paying the Minimum on a 7k Credit card balance and had 10k savings then why are you not paying off the credit card in full? Is the 7k on a 0% on purchases for a set amount of months (I.E. 0% for 18 months) if so then paying the minimum payment is ok.  If not then why are you paying a hell of a lot of interest when you could use the 10k savings and pay it off in full?

Graham1982

dr_adidas01 said:

Graham1982 said:

zx81, thank you:

So in simple terms do you mean if I had a 7k credit card bill and was paying the minimum but had 10k in savings, that would be unnecessary balance carrying?

So I could keep the facility as long as there is no balance?

If you are paying the Minimum on a 7k Credit card balance and had 10k savings then why are you not paying off the credit card in full? Is the 7k on a 0% on purchases for a set amount of months (I.E. 0% for 18 months) if so then paying the minimum payment is ok.  If not then why are you paying a hell of a lot of interest when you could use the 10k savings and pay it off in full?

Hi dr_addidas:
I am not doing that, sorry if I didn't make it clear. What I meant was if I was doing that (which again I am not) but if I was, not only would that be financially stupid as I knew and you suggested) but would such a decision also be seen as bad in the eyes of lenders.

Cheers

Graham