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  • FIRST POST
    • NorthantsPete81
    • By NorthantsPete81 9th Nov 18, 11:30 AM
    • 17Posts
    • 4Thanks
    NorthantsPete81
    Should I close some accounts to help credit ratings?
    • #1
    • 9th Nov 18, 11:30 AM
    Should I close some accounts to help credit ratings? 9th Nov 18 at 11:30 AM
    Im always wanting the best 0% deals for transfer.


    I have over 42k of available credit, whilst onlty using 7k of it.


    So, my ratio is 'positive' in that ive got 35k available credit


    but could this be going AGAINST me? Some ar eopen because they have high credit limits

    ie. Amex 7500
    Vanquis 9000
    Aqua 11000


    but they never give me deals - would they be better off closed?


    OR
    should I appy for more guaranteed acceptance credit cards and increase my ratio further (ie. capital one, ocean finance etc.)


    I wanted a loan for house improvements for 20k but was declined, so Im wondering if they have evaluated my available credit which could potenitally put me 70k in debt if i drew out on all?


    The only bad thing i could see on my file was that Barclays upped my credit limit (noddle said this was a netative)


    So, totally hyperthetical, if I had 100k avilable credit, yet I only used 1k of it, would I have better chance than someone who had 10k credit and used 100
    Last edited by NorthantsPete81; 09-11-2018 at 11:34 AM.
Page 1
    • zx81
    • By zx81 9th Nov 18, 11:44 AM
    • 19,380 Posts
    • 20,709 Thanks
    zx81
    • #2
    • 9th Nov 18, 11:44 AM
    • #2
    • 9th Nov 18, 11:44 AM
    So, totally hyperthetical, if I had 100k avilable credit, yet I only used 1k of it, would I have better chance than someone who had 10k credit and used 100
    Originally posted by NorthantsPete81
    It would depend on the hypothetical incomes of you both.
    • LMS94
    • By LMS94 9th Nov 18, 12:41 PM
    • 21 Posts
    • 4 Thanks
    LMS94
    • #3
    • 9th Nov 18, 12:41 PM
    • #3
    • 9th Nov 18, 12:41 PM
    So, totally hyperthetical, if I had 100k avilable credit, yet I only used 1k of it, would I have better chance than someone who had 10k credit and used 100
    Originally posted by NorthantsPete81
    Not necessarily. Who's to say you don't go out and blow the whole 100k in one go?
    • Gary_Dexter
    • By Gary_Dexter 9th Nov 18, 12:43 PM
    • 2,596 Posts
    • 1,460 Thanks
    Gary_Dexter
    • #4
    • 9th Nov 18, 12:43 PM
    • #4
    • 9th Nov 18, 12:43 PM
    Ignore the scores and ratings as they are made up

    What is the incentive for closing some accounts down?
    • NorthantsPete81
    • By NorthantsPete81 9th Nov 18, 2:12 PM
    • 17 Posts
    • 4 Thanks
    NorthantsPete81
    • #5
    • 9th Nov 18, 2:12 PM
    • #5
    • 9th Nov 18, 2:12 PM
    that is my question - do i benefit by closing them in the hope of better deals r should I keep them open and empty?




    does it harm me to keep them open or closed?


    Income 50k, partner 12k
    • zx81
    • By zx81 9th Nov 18, 2:40 PM
    • 19,380 Posts
    • 20,709 Thanks
    zx81
    • #6
    • 9th Nov 18, 2:40 PM
    • #6
    • 9th Nov 18, 2:40 PM
    On that income, I'd keep them.
    • Willing2Learn
    • By Willing2Learn 9th Nov 18, 2:45 PM
    • 1,752 Posts
    • 1,340 Thanks
    Willing2Learn
    • #7
    • 9th Nov 18, 2:45 PM
    • #7
    • 9th Nov 18, 2:45 PM
    ... do i benefit by closing them in the hope of better deals r should I keep them open and empty?

    does it harm me to keep them open or closed?

    Income 50k, partner 12k
    Originally posted by NorthantsPete81
    I agree with zx81, I would keep them open too.

    Why are the accounts always empty? It would look better on your credit history for you to use the cards. Just pay for the normal stuff on the cards, expenditure that is within your normal monthly budget. Then pay off in full after the statement is received and before the due date.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • NorthantsPete81
    • By NorthantsPete81 9th Nov 18, 3:08 PM
    • 17 Posts
    • 4 Thanks
    NorthantsPete81
    • #8
    • 9th Nov 18, 3:08 PM
    • #8
    • 9th Nov 18, 3:08 PM
    Yes, doable. I just dont use them as theyre expensive but I could use them more regularly if it would be worthwhile. I dont use them as I dont need them and i try not to use credit if i dont need to.



    Is it really worth using them? Does it make mushc difference as I have balances on my others and regularly pay to them without fail
    • NorthantsPete81
    • By NorthantsPete81 9th Nov 18, 3:11 PM
    • 17 Posts
    • 4 Thanks
    NorthantsPete81
    • #9
    • 9th Nov 18, 3:11 PM
    • #9
    • 9th Nov 18, 3:11 PM
    . Then pay off in full after the statement is received and before the due date.
    Originally posted by Willing2Learn

    Is that the same as setting my direct debit to pay in full each month? OR will i get charged interest?
    • Willing2Learn
    • By Willing2Learn 9th Nov 18, 3:28 PM
    • 1,752 Posts
    • 1,340 Thanks
    Willing2Learn
    That is exactly what a DD does, as your DD will pay the full balance due before the due date.

    And I di not realise that you had other cards too. Cards that you are using and thus, evidence of successful credit account management. In that case there is no need to spend on the sub-prime cards...
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • Thrugelmir
    • By Thrugelmir 9th Nov 18, 3:32 PM
    • 61,066 Posts
    • 54,279 Thanks
    Thrugelmir
    The only bad thing i could see on my file was that Barclays upped my credit limit (noddle said this was a netative)

    Originally posted by NorthantsPete81
    The more available credit you have the greater danger you pose. If you decided to go on a spending spree then default. Having large available facilities tells a lender nothing. Other than influence what they might offer you if you were to apply for a credit facility. Risk is priced.

    I wanted a loan for house improvements for 20k but was declined, so Im wondering if they have evaluated my available credit which could potenitally put me 70k in debt if i drew out on all?
    Then I suspect you are barking up the wrong tree. Base points are LTV, affordability etc. In conjunction of an overall assessment of your credit profile.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Thrugelmir
    • By Thrugelmir 9th Nov 18, 3:34 PM
    • 61,066 Posts
    • 54,279 Thanks
    Thrugelmir
    Just pay for the normal stuff on the cards, expenditure that is within your normal monthly budget. Then pay off in full after the statement is received and before the due date.
    Originally posted by Willing2Learn
    Lenders do not report balances at the statement date. Just at a point of time. Constantly rolling a balance over. Would suggest that it's being used much in the way of an interest free overdraft.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Craig1981
    • By Craig1981 10th Nov 18, 6:18 AM
    • 450 Posts
    • 212 Thanks
    Craig1981
    i still have my aqua card open - used it every few months to keep it ticking, but keep it as it is 0% for international transactions. the only offers i get from them are personal loans from 21.9% APR, which is never a thought to me. and sometimes a 6 month MT or BT at 0% but with a 3.99% transaction fee

    Vanquis before i closed it off, never had an offer come through for any incentive to use the card more

    as you only have 4, i would keep them, shows longevity on the accounts as well
    • Tarambor
    • By Tarambor 10th Nov 18, 9:22 AM
    • 3,812 Posts
    • 2,842 Thanks
    Tarambor
    If you're bothered about the score I just dumped 22k of unused credit card balance availability with 2 cards and its made absolutely no difference to the score. No idea about the improvement in affordability as I have no intention and no reason to get a card or loan.
    • Yooks
    • By Yooks 10th Nov 18, 10:08 AM
    • 8 Posts
    • 5 Thanks
    Yooks
    The decline of the loan can be a factor of many things. High credit limit does not show that you’re a trusted borrower. If your credit utilation is always low it may come across to the lender that you do not need the loan or you may seem high risk as you don’t have history of paying off large amounts. I don’t suggest closing the accounts but if that is your desire then it will not have a huge negative impact on you apart from a lower credit limit
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