Credit Score Question

csa40

I'm cross posting this. Posted it on the 'Anything Else' board but had no response, maybe here is more apt? Thanks in advnce


Hello! Sorry if this in the wrong place, I did have a good scour round the site to see if could find an answer first and then tried to find the right board - I'm pre-coffee though!
I've just looked at my credit report from Experian. I'm in the 'poor' category and it says this is because I have a lot of accounts open. Now most of those are online catalogue type accounts (I know, I know, they're expensive and ridiculous but I had cashflow problems one Christmas!). Some have never been used, others are settled entirely. Would it be a good idea to close these? They mount up to a few thousand in credit. I know it's sensible to get rid of credit cards that don't get used but I'm not sure how it works with these. My thinking was 'Well if companies can see that other people are willing to lend to me, that must look good', now I'm not so sure!
My total debt is around £800 which includes one catalogue hangover (MP3 player), my laptop, credit card and a store card that I use whenever they have storecard holder events. It's totally manageable and I haven't missed any repayments, paying over the minimum when I can. I'll begin paying off big chunks in the next couple of months, so I want my credit score to look nice and pretty once that's all paid off.
Thank you!

Marty_J

It sounds as though you have too much available credit, which can put lenders off. If this is the case, closing the accounts you don't use should improve your credit rating.

csa40

Ah yes, I suppose it could look like I could go on a wild spending spree at any moment!

Marty_J

Not just that, but lenders want to see that if they give you credit, you'll use it.

Otherwise, they won't make any money!

csa40

Makes sense! I shall get account closing. Already closed the Littlewoods account that they kindly and secretly opened for me when I applied for and was declined credit early last year..! Only noticed it when I checked my credit score. Tsk to them!

Night-owl_6

Your Name
Home Address
Phone Number

Attention: {Creditor's Name}
Creditor's Address
RE: Account #: {your account number here}
Dear Accounting Department {or Creditor's Name if you have it}
Please close the above referenced account effective immediately. I spoke with {insert name} on {insert date} at {insert time}, and {he/she} assured me that the "payoff balance" would be no more than $ {insert dollar/cents amount}. I've enclosed a check for that exact amount.

Or alternatively... Please close the above referenced account effective immediately. My records indicate the account has a zero balance.

Please send me written confirmation that this account has a zero balance and the date the account was closed . Also, include proof that you've closed this account as "closed by consumer" to the national credit bureaus.
Thank you for your cooperation. If you have any questions concerning this matter I can be reached at (insert daytime phone number and area code)
Sincerely,

Signature just above printed name
Your Printed Name