Unused Credit Card vs Credit Score

[romeogolf]

Took out a 0% credit card almost a year ago in anticipation of a large bill. Bill turned out to be far lower and I never used the card.

Is it worth closing the card? Does it help or damage my credit score to keep it open?

For reference I've got two other cards which are used regularly and paid off in full each month so this is just about 'available balance' considerations.

Thanks.

[Sarnie]

Flip a coin..............there is no right answer.

Some lenders won't like the exposure of your available credit.

Other lenders will calculate your "headroom" which is the amount of credit you are utilising Vs your available limits.

Equifax & Experian have a lot to answer for, for making consumers become paranoid about these things!!

[romeogolf]

Sarnie said:

Equifax & Experian have a lot to answer for, for making consumers become paranoid about these things!!

It's a minefield, really. My "Clearscore" report says I'm 460ish out of 700. Noddle says 5/5 after being 4/5 for months.

My partner earns more and has fewer debts in his name, but is frequently denied credit where as I've never had much trouble. Only once been declined and that was as a result of not being on the electoral roll after moving!

[Sarnie]

romeogolf said:

Sarnie said:

Equifax & Experian have a lot to answer for, for making consumers become paranoid about these things!!

It's a minefield, really. My "Clearscore" report says I'm 460ish out of 700. Noddle says 5/5 after being 4/5 for months.

My partner earns more and has fewer debts in his name, but is frequently denied credit where as I've never had much trouble. Only once been declined and that was as a result of not being on the electoral roll after moving!

The credit referencing agencies, along with lenders, all use algorithms to give you a "score".

To calculate your "score" they will attribute you points, which are derived from dozens and dozens of data such as payment history, being on the electoral roll, being self employed Vs PAYE, how long you've lived at your address, howe owner or not, employment history, post code, age, dependents.............the list goes on.

Each of the credit referencing agencies apply their own weighting to each piece of data, hence variable results from the three of them. One may think being a homeowner is mortgage important than being on the electoral roll for example. There is no uniform way of credit scoring individuals.

Anyway, no matter what any of the credit referencing agencies say about you, it's how the lender assesses your data that is key. Lenders will set a minimum score required to be accepted for their credit. You accumulate points in dozens of areas, as mentioned above.

All the credit referencing agencies have done is take the old statutory credit report, made up their own way of interpreting all the 111110000001111's into a pretty pie chart and a tangible numerical score, that the nation now seems to be fixated on protecting or increasing........and charge you £15pm for the pleasure....