Very rarely used accounts

NotMyDebt87

Hi all,

I have a Studio & Littlewoods accounts which appear on my credit file that I very, very rarely use. These were both opened about 4/5 years ago in the hope that they would help boost my rating abit.

In the beginning I used them & paid off the amounts on time without missing any payments, but in the last couple of years I have used them once in a blue moon (the studio one moreso than the littlewoods one).

The credit limits I have on them are as follows:-

Studio - £1350
Littlewoods - £400

So my question is, is it worth keeping these accounts open, or are they more detrimental having them there if I don't use them?

I'm trying to do all that I can to improve my score/rating as I am looking at applying for a mortgage with my partner later this year, so anything that can help that is welcome!

Thanks in advance!

MorningcoffeeIV

Don't try to improve the score/rating. They're not real things and you'll end up doing the wrong thing if you chase the pretend numbers.

The accounts won't worry lenders. Just make sure you are some active accounts that show you can handle credit.

NotMyDebt87

Thank you for the response, that's fair enough, it's all quite confusing for someone who doesn't really have any idea on credit rating/files

I have an active credit card which I use every month & pay the full balance on every month, also a phone bill which I never miss payments on aswell.

My car insurance is due for renewal in May & will probably end up paying that monthly rather than in one lump like I did last year. Is it worth me having more than these accounts, or should what I have be enough for now?

cymruchris

NotMyDebt87 said:

Thank you for the response, that's fair enough, it's all quite confusing for someone who doesn't really have any idea on credit rating/files

I have an active credit card which I use every month & pay the full balance on every month, also a phone bill which I never miss payments on aswell.

My car insurance is due for renewal in May & will probably end up paying that monthly rather than in one lump like I did last year. Is it worth me having more than these accounts, or should what I have be enough for now?

If the insurance costs more monthly - but you have the money to pay for it as a lump sum payment - don't spread the cost. 

Keep using your credit card and pay in full - keep paying your bills on time - keep the mobile phone going - stay on the electoral roll - and you'll be going in the right direction. It's about positive credit history - not some made up number. 

In reference the two accounts above - if they are showing as 'active' and 'up-to-date' with little green ticks in the monthly boxes that you see on most CRA reports - I'd be inclined to leave them as they are. It's increasing the average age of your accounts month by month - and lenders like stability rather than chopping and changing.

NotMyDebt87

Thanks for that info, I'm not sure if I'll have the money to pay in one lump this time round, I'll have to have a look at the time

I've just recently moved in with my other half & have moved from one county to another so have signed up to be on the electoral roll so that should show in the coming weeks aswell

Yeah they are both still active & don't have any negative marks against them. That's good to know though, I was a little worried that having them there but not using them would be seen as a bad thing, but that has reassured me so I'll keep them going 👍

Thanks for your help