Credit cards

Soozehound

Money Making Megastar!
Joined
Apr 2, 2017
Messages
200
Reaction score
93
Points
198
Age
33
Location
Essex
I've been very lucky recently to have come into some money that has enabled me to get rid of all of my longstanding debt.

Super happy, and now I have 4 credit cards with 0 balance and PayPal credit etc all 0... My next step is working on the credit score tbh, so please any tips would be great, but first, do I keep the 0 balance credit cards, or close the accounts?
Discussions online seem conflicted on the subject!
 

EdibleDormouse

Money Making Megastar!
Joined
Apr 25, 2015
Messages
442
Reaction score
457
Points
183
I think the advice from places like Money Advice Service has always been use credit sensibly to keep a good credit rating, i.e. use it and pay it off, and keep it below 75% of the total credit limit. I'd personally ditch two of the cards, but that's personal preference, not advice!
 
  • Like
Reactions: Soozehound

homie

One of the finest Matched Betting helpers around!
Joined
Oct 16, 2016
Messages
1,915
Reaction score
947
Points
283
I was thinking the exact same thing. Close 2 and keep 2. Use them to make the occasional purchase and set up a direct debit from your main bank account to pay them off in full each month so you don't get charged any interest. (check the terms to make sure this would be the case, ditch any cards that don't offer it) That will help to build up your credit rating.
 

MIch21

Money Making Megastar!
Joined
Apr 30, 2018
Messages
242
Reaction score
157
Points
143
Age
40
I agree with advice above - make sure you keep the ones if you can that offer some good rewards - like points etc - Tesco/sainsburys - Possibly marks and Spencer? As that way not only do you get good credit rating you can also get points towards other stuff.
 

PhilE

Money Making Megastar!
Joined
May 16, 2017
Messages
21
Reaction score
10
Points
153
I think that using cards and paying them off regularly is slightly better than doing nothing as it shows a good track record of not missing payments.

Also useful to use credit cards for big purchases for protection. For instance a while back I purchased a new TV. Paid the full amount of the TV off the credit card the same day from the money in my current account, just to ensure I had the extra protection of paying via credit card rather than debit card.
 

Karonher

Money Making Megastar!
Joined
Jan 25, 2014
Messages
1,382
Reaction score
567
Points
233
Keep 2. I have one that I use and pay off each month and one that is there if I lost the first one.
 

homie

One of the finest Matched Betting helpers around!
Joined
Oct 16, 2016
Messages
1,915
Reaction score
947
Points
283
Also useful to use credit cards for big purchases for protection. For instance a while back I purchased a new TV. Paid the full amount of the TV off the credit card the same day from the money in my current account, just to ensure I had the extra protection of paying via credit card rather than debit card.
I had forgotten about that. It's a very good point, especially when ordering online.
 

An-na

Money Making Megastar!
Joined
Apr 3, 2018
Messages
205
Reaction score
162
Points
123
I've been very lucky recently to have come into some money that has enabled me to get rid of all of my longstanding debt.

Super happy, and now I have 4 credit cards with 0 balance and PayPal credit etc all 0... My next step is working on the credit score tbh, so please any tips would be great, but first, do I keep the 0 balance credit cards, or close the accounts?
Discussions online seem conflicted on the subject!

Hi @Soozehound , great that you have been able to clear your debts. It's a fantastic feeling to be free of all that financial stuff.

I am not an expert but it is worth having a look at Martin Lewis site and perhaps joining his Credit Club as its free. I have been on this for a while and it gives you access to lots of financial information including your Experian credit score. If it changes you will be notified.

In regard to closing credit cards it may not be such a good idea as it can affect your credit score negatively. Have a look at the Experian link:


If I had four clear credit cards I would use two and hide the other two and forget about them.

Good luck with what ever decision you make.

An-na
 

Amazon Discount Finder Tool

Find hidden 80%+ savings on Amazon products



 

 

 

 

 

 

 


TMSPRESTO