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  • FIRST POST
    • elhutchy
    • By elhutchy 10th Aug 18, 4:10 PM
    • 1Posts
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    elhutchy
    Is it better to close card or leave it unused?
    • #1
    • 10th Aug 18, 4:10 PM
    Is it better to close card or leave it unused? 10th Aug 18 at 4:10 PM
    I have just graduated from university and want to improve my non-existent credit score. I was thinking of using a credit card to buy a car and then pay it off straight away. BUT I don't want to continue using the card. What is worse: closing the card or leaving unused? Or should I not bother with any of it and buy my car with my debit card?
Page 1
    • Willing2Learn
    • By Willing2Learn 10th Aug 18, 4:16 PM
    • 817 Posts
    • 629 Thanks
    Willing2Learn
    • #2
    • 10th Aug 18, 4:16 PM
    • #2
    • 10th Aug 18, 4:16 PM
    Hi elhutchy and welcome to the forum

    Having an aged credit card account on your credit file demonstrates to a potential lender stability and the ability to successfully manage credit accounts.

    It is good to keep using the credit facility. Just do your normal shopping on the card, staying within your normal budget. Then pay off the card in full after you have received the statement. Easiest method is to pay by Direct Debit the full amount.

    Don't worry about your credit score. Lenders don't use it when making a decision. They score you independently, against their criteria and policies, using the data in your credit file plus any data you supply during an application.

    Edit: And if you have budgeted to buy a car, then make the purchase on a credit card and pay off in full as per above. The added advantage of paying by credit card is that you get s75 protection should the purchase turn sour.
    Last edited by Willing2Learn; 10-08-2018 at 4:23 PM.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • nic_c
    • By nic_c 12th Aug 18, 9:20 AM
    • 1,615 Posts
    • 878 Thanks
    nic_c
    • #3
    • 12th Aug 18, 9:20 AM
    • #3
    • 12th Aug 18, 9:20 AM
    Where are you getting the car from? Does it come with a warranty?

    If you've not got a credit card and want to apply, how do you know the card will give you enough credit limit, or is your car costing 200?
    • James145
    • By James145 15th Aug 18, 2:31 PM
    • 12 Posts
    • 5 Thanks
    James145
    • #4
    • 15th Aug 18, 2:31 PM
    • #4
    • 15th Aug 18, 2:31 PM
    It depends on your current circumstances - if you don't have access to much credit at the moment having a credit card but not using it will show you aren't desperate for credit. However, if you have access to a lot of credit already (such as other credit cards/loans), then having more credit might reduce your credit score, as lenders might see you as close to being over-leveraged.
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