Cleared Credit Card - What next?

Geminemie · 21 February 2019 at 8:18PM

Hi

I took it out when I had a poor credit rating but it has increased now. The cards are still on my credit report despite clearing them.

Should I close the accounts or does it not mean anything? I've cut up the cards and I have a new card with a better rate now

Many thanks

Willing2Learn · 21 February 2019 at 8:25PM

How long have you had the cards? How many cards are you talking about? If you close the card accounts then your score will drop. However, your score is irrelevant as a lender neither sees nor uses your credit score. Your credit score is for your eyes only.

Geminemie · 21 February 2019 at 8:57PM

Hey!

I have 5 credit accounts open. 2 have money to pay off (moved over to make the most of 0% interest)

There are 3 cards which I could close.

1 - Has never been used
1 - was used for half a year but I have had not used it for over a year
1 - I've just paid off but had for about 2 years.

I was worried about credit score as I am looking to buy a house next year! I dont mind keeping them open but wasn't sure if it would effect me negatively to have so many open.

Willing2Learn · 21 February 2019 at 9:02PM

If it was me I would keep the card that you've had for 2 years and have just paid off. I would probably close the other two cards, leaving you with three open credit card accounts. Like I said though, this will make your score drop, but as a mortgage provider does not use the score, then it doesn't matter.

[Deleted User] · 21 February 2019 at 9:04PM

Geminemie wrote: »

I was worried about credit score as I am looking to buy a house next year!

You only need to worry about that if you're buying a house from Experian!

Ben8282 · 21 February 2019 at 9:05PM

It would be better if you were to actually use the cards from time to time and repay the full amount after the statement has been issued. That way it would show that you are actually using and repaying the cards on time and in full every month.
Forget about the credit score. Nobody sees it except you and it is meaningless for all practical purposes. It is the information on your credit files as to how your accounts are conducted that is important.

Cleared Credit Card - What next?

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