Does your oldest account really make a difference to your credit score?

beetwaste

I've just moved current accounts again, and as a result I have added to my ever-increasing collection of credit cards. I now have 6, with a total credit limit of £20,000. I don't need that many (who does?!), and some need to go. 

I'm constantly advised by the likes of Credit Karma that a total limit of £15k is a good thing; not totally convinced, but perhaps they're right. More importantly, though, one of those cards is my oldest financial product, and I'm told that this is a good thing and I should keep it open. It's not the best value card, and I'm unlikely to use it, so it's my prime candidate to close - but I don't want to lower my credit score by doing so.

Your thoughts would be welcome, thank you!

born_again

Forget your score it is meaningless to any lender (never seen by them)

constantly advised by the likes of Credit Karma that a total limit of £15k is a good thing

Depends on income against debt.

Brie

I agree that a credit score is meaningless.  What is important is ensuring that your credit report is tidy.  No CCJs sneaking on there without you noticing (happens with PCNs sometimes), no excessive use of credit agreements for phone contracts, motor insurance etc, overdrafts in check, registered to vote.  

sourcrates

Always keep in mind that the CRA`s are commercial businesses, and as such need an income stream. 

Your "pretend" score going up and down, and messages advocating running a credit balance, are all a part of their marketing strategy.

Some sell access to credit reports, some sell credit improvement products, nearly all act as a credit broker.

Advice on how to get your score higher is pointless, as they control what number you are given, its all smoke and mirrors, and just another way to potentially get money out of you.

When you are assessed for credit, lenders use their own, commercially sensitive scoring system, which the general public are not privy too, the number you see on your credit report is a very lose indication of how that particular CRA views you, based on your report, but then CRA`s don`t lend money effectively making that number useless.

Grumpy_chap

beetwaste said:

I'm constantly advised by the likes of Credit Karma that a total limit of £15k is a good thing;

Other than your credit score, can we be certain that there is no other motivation that the credit reference agencies who have part of their business income derived from selling credit cards to suggest that a credit card facility limit of £15k is a good thing?

Hoenir

beetwaste said:

 More importantly, though, one of those cards is my oldest financial product, and I'm told that this is a good thing and I should keep it open.

When it comes to finance how people conduct themselves speaks volumes. Used to be that borrowers could be categorised into 13 different types. As human nature has discernible traits. How people behave often never really changes. 

Barkin

beetwaste said:

I've just moved current accounts again, and as a result I have added to my ever-increasing collection of credit cards. 

How?  What does moving current accounts have to do with your number of credit cards?

beetwaste

Barkin said:

beetwaste said:

I've just moved current accounts again, and as a result I have added to my ever-increasing collection of credit cards. 

How?  What does moving current accounts have to do with your number of credit cards?

The new current account provider offered a new credit card as pat of the application, the terms are good and it makes it easier to see (and maintain) my accounts in one place, so I accepted the offer. However, it also means I need to remove some other cards elsewhere because I don't need all the other cards, and I don't like having old cards that aren't being used.

beetwaste

Thanks for everyone's replies - seem the 'credit score' is a bit meaningless, so that makes my decision a bit easier. I've done nothing yet because the new current account provider fluffed up the switch (yay!) so once it's done I'll evaluate which cards to get rid of.