Closing credit accounts after clearing them off?

ashleydrollinson

Hello

I have just cleared off a couple of credit accounts and was wondering in the eyes of credit rating companies if it was best to a) keep the accounts but not use them or pay them off each month if usesd b) close the accounts so the total amount of credit i have available to me is less.

I am trying to improve my rating and have paid off these accounts without fault.

Thanks for your advice.

destiny_star2006

Ive also been wondering this so no advice lol but will be stealing your replys hehe

sharon59

Yes me too this caught my eye!I have couple clear for years in 2 cases but never sure so look forward to hearing what others think.

cathys1_2

My dh works for a a credit card company, and says that each company looks for something different.
Payment histories - good or bad will still show up on your file, so that makes no difference.

However - if you intend to apply for other cards in the future, credit companies may wonder why, when you have x amount of cards "sitting there" with nothing on it, and an open account - and that is often what goes against people.

HTH

Poppycat

this was mentioned on working lunch last week by experia the credit check place. Apparently if you intend not to use credit in the future it is best to close the accounts

carpetbelly

Having an account with a revolving balance which is paid off in time looks good. If you don't plan to use the account anymore, I'd get it closed personally. Mainly if you want to apply for anything in the future that account will still be open on your file and the exposure of that account would be taken into account of what you could possibly get into debt with.

mandalay_2

Hi there

I would leave at least 1 available credit facility open, as this is what I look for when I underwrite any type of credit facility. If you have a few open, I would close the others in full. They still stay on your file and show that you have managed the facility well and companies will be able to see this years after they've been closed.

Hope this helps

Dixie99

yes, I would agree with cathys1 & poppycat - also, for safety (ie. fraud) it's best to close a credit card if you don't intend to use it again.