Credit Rating

PhilCCFC

Hi,

I'm on the verge of clearing off my debts (other than mortgage) and I would like to get rid of all of my credit cards bar one to be used in emergencies. Question is, does closing the remaining accounts have a detrimental affect on my credit rating ?

Thanks

Clariman

PhilCCFC wrote:

Hi,

I'm on the verge of clearing off my debts (other than mortgage) and I would like to get rid of all of my credit cards bar one to be used in emergencies. Question is, does closing the remaining accounts have a detrimental affect on my credit rating ?

Thanks

It is highly unlikely to have a detrimental effect on your credit rating. Indeed, it is much more likely to have a positive effect.

Clariman

grumbler

I think regular using of a credit card at least once a month and making monthly payments in time has a positive effect on your credit rating.

Reaper

Your credit history remains for 6 years, so future lenders will be able to rate you for some time yet. If you never use cards then eventually it will slowly decline as recent transactions count for more than old transactions.

But as long as you keep at least 1 card you will be ok for a long time. If you spend on it every now and then and pay it off in full then even better - but not if that tempts you back into debt!

PhilCCFC

Good points, thanks.

The 'emergency' card is going in the freezer as recommended elsewhere on MSE

It's taken too long to sort this lot out, no way am I heading back in to debt.