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Credit cards; to keep or not to keep #1562937
08/02/2016 13:27
08/02/2016 13:27
Joined: Jan 2006
Posts: 5,294
Portsmouth
A
ali_hire Offline OP
Forum is my life
ali_hire  Offline OP
Forum is my life
A

Joined: Jan 2006
Posts: 5,294
Portsmouth
I'm trying to make my credit profile look as good as possible in readiness for buying a house (realistically 18 months away).

I have two credit cards which I don't use and don't intend to. One has a limit of £1200 and the other is £200.

Is it better to cancel cards you don't use or should I keep hold of one/both and start using it regularly?

I asked a similar question on Moneysavingexpert but got no responses. cry

Re: Credit cards; to keep or not to keep [Re: ali_hire] #1562941
08/02/2016 13:43
08/02/2016 13:43
Joined: Sep 2009
Posts: 5,034
ation
szkom Offline
Club member 2000
szkom  Offline
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Forum is my life

Joined: Sep 2009
Posts: 5,034
ation
I personally would cycle them. Load your fuel for a month and clear it down with regular payment. That said, if you've 3 other cards then I'd get shot as you'd have access to money, which lenders consider.

Re: Credit cards; to keep or not to keep [Re: ali_hire] #1562948
08/02/2016 14:12
08/02/2016 14:12
Joined: Mar 2007
Posts: 16,926
Auld Reekie
Edinburgh Offline
Club President, member225
Edinburgh  Offline
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Forum veteran

Joined: Mar 2007
Posts: 16,926
Auld Reekie
From what I gathered while listening to Martin Lewis on R5L just now, in the UK a) we don't actually have a "credit rating score" as they do in the US for example and b) each place you approach tends to have a different approach depending on which criteria you fulfil.

Main attraction for them are your ability to pay through a regular income, i.e. that you're a good "risk".

Using the upper limit card once or twice for a major purchase and then paying the balance off immediately won't do any harm.


BumbleBee carer smile
Re: Credit cards; to keep or not to keep [Re: ali_hire] #1562959
08/02/2016 15:03
08/02/2016 15:03
Joined: Sep 2006
Posts: 8,960
west bromwich
C
coupedummy Offline
Je suis un Coupé
coupedummy  Offline
Je suis un Coupé
C

Joined: Sep 2006
Posts: 8,960
west bromwich
I use my credit card to protect on purchases. Had to use it a few times. I book holidays etc on ours.

I plan later in the year to buy a car from a dealer and paying my deposit on one.


[Linked Image]
Re: Credit cards; to keep or not to keep [Re: ali_hire] #1562965
08/02/2016 16:00
08/02/2016 16:00
Joined: Mar 2008
Posts: 5,095
highlands
jimboy Offline
Club Member 857
jimboy  Offline
Club Member 857
Forum is my life

Joined: Mar 2008
Posts: 5,095
highlands
Yep credit cards do have their uses. We have Santander 123 & pay our supermarket bills & fuel etc. We tend to get back £40 odd each month just for paying up on time, no brainer for me.

Regarding the cards you don't intend to use, ditch them as said.


I'm an old git & happy with it,most of the time
Re: Credit cards; to keep or not to keep [Re: ali_hire] #1562966
08/02/2016 16:30
08/02/2016 16:30
Joined: Mar 2006
Posts: 8,852
Cambridge & Cotswolds
M
MeanRedSpider Offline
Je suis un Coupé
MeanRedSpider  Offline
Je suis un Coupé
M

Joined: Mar 2006
Posts: 8,852
Cambridge & Cotswolds
Yes - many things on your credit profile are double-edged. My Experian profile is currently 987 out of 999 - having a track record of managing credit is a good thing but using too much of that credit knocks things back. Also, as you take out a new line of credit, your score tends to go down but as you build a track record, it builds it back up again.
What is a good idea is checking that there's no incorrect data on there. I'm stunned how easy it is for companies to put rubbish on your report. My credit card company decided to reset my direct debit - cancelling one and starting a new one. They then tried to call on the one they just cancelled and, of course, it was rejected by the bank. So they then put a missed payment on my report (having said they wouldn't). Fortunately this flagged for me and I was able to go back and get it sorted but it just goes to show what can happen.

Re: Credit cards; to keep or not to keep [Re: ali_hire] #1562967
08/02/2016 16:44
08/02/2016 16:44
Joined: Dec 2005
Posts: 12,295
Sandhurst
Begbie Offline
Ex El Presidente
Begbie  Offline
Ex El Presidente
I AM a Coop

Joined: Dec 2005
Posts: 12,295
Sandhurst
Also, there are a couple of sites out there offering free credit reports:

www.noddle.co.uk
www.clearscore.co.uk


Originally Posted by Jonny - After being taken out at Spa
Your car is Usain Bolt with wellies
Re: Credit cards; to keep or not to keep [Re: Begbie] #1563020
09/02/2016 08:36
09/02/2016 08:36
Joined: Dec 2005
Posts: 5,895
2011 and 2015 FCCUK F1 Champ.
B
bezzer Offline
Forum is my life
bezzer  Offline
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Joined: Dec 2005
Posts: 5,895
2011 and 2015 FCCUK F1 Champ.
Originally Posted By: Begbie
Also, there are a couple of sites out there offering free credit reports:

www.noddle.co.uk
www.clearscore.co.uk


Beggars, I think you meant - ClearScore



......My Boy...... (PB #7)
Re: Credit cards; to keep or not to keep [Re: ali_hire] #1563041
09/02/2016 12:34
09/02/2016 12:34
Joined: Dec 2005
Posts: 12,295
Sandhurst
Begbie Offline
Ex El Presidente
Begbie  Offline
Ex El Presidente
I AM a Coop

Joined: Dec 2005
Posts: 12,295
Sandhurst
rofl

Yeah, I did mean that one


Originally Posted by Jonny - After being taken out at Spa
Your car is Usain Bolt with wellies
Re: Credit cards; to keep or not to keep [Re: ali_hire] #1563045
09/02/2016 12:57
09/02/2016 12:57
Joined: Jul 2012
Posts: 1,650
Dark side of the Moon
H_R Offline
My life on the forum
H_R  Offline
My life on the forum

Joined: Jul 2012
Posts: 1,650
Dark side of the Moon
As mentioned "Available Credit" could be an issue so close any accounts down that you do not use, but keep one to use and pay it off regularly

When applying for a mortgage outstanding debt is the main thing that determines what you can borrow and by borrowing a bit more to clear the debts with your equity (if you are selling a house too) can mean you can borrow a staggering amount more than the "actual" extra amount of money you have just borrowed to pay outstanding debt off crazy

Re: Credit cards; to keep or not to keep [Re: H_R] #1563048
09/02/2016 13:20
09/02/2016 13:20

P
proccy
Unregistered
proccy
Unregistered
P



It's a negative to NOT have a credit card despite any other obligations you have and are clearing successfully - but I don't believe it's a hindrance to obtaining credit in the future provided the history is ok too.


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