Credit score / rating.

[neo680]

Having finally cleared 3 outstanding credit cards, which is the best way to improve your credit score? I have been given 2 pieces of conflicting advice: one that it's best to have a number of cleared cards, which prove that you don't 'waste' credit that's available to you, the other that having a number of cards & therefore a larger amount of available credit actually reduces your score, even if they're all with a zero balance.
I'm obviously aware that using them & paying them back promptly is good for your rating. But I don't intend, or in fact need, to use the cards. Is it best to keep them to 'prove me trustworthy' or cancel all but one to reduce my available credit & enhance my credit score?

[kempie]

A comprehensive analysis of credit scoring is available at www.moneysavingexpert.com and covers the specific issue of cancelling old credit cards.

[abranei]

I use the Equifax Credit score report its costs �16 pounds and give additional information and what to do if you have issues on your score.

Before anyone posts it: You can write to Equfax and request your information for around �2. This is all part of the Data Protection Act which means you have the right to see the information held about you.

I prefer to pay the �16 because its quick and easy to get online and has help and advice lumped in for good measure.

[abranei]

I recently closed my unused cards as one of them was used in fraud.

Considering that I destroyed this card as soon as it arrived in the post and that the card was never used except for a balance transfer it shows that its a security risk.

[neo680]

Thanks, guys. Followed link to moneysavingexpert.com (ta kempie) which suggests that too many available cards can affect your score, especially if they're zero balance as it shows you're of no use to the lender! If you always pay off your cards, they aint gonna earn the interest from you, therefore they probably won't be interested.
Visited site (well worth a look for heaps of good info) & immediately cancelled all but 1 card kept for emergencies.
Just proves that AB works again!

[neo680]

Abranei: have considered Equifax online, but unsure if it's that much help as there's 2 other companies potential credit suppliers use. (Experian & another I can't remember!) The info they hold can, apparently, be different, dependant on what they've been told. So unless you visit all 3 & gain the info, is it a lot of use? Especially as it's more of a "just out of interest" issue. Have no intention of gaining more credit, having just about cleared 18 years of marital debt! (And solicitors fees!!)
You mention other info / advice; I'm not averse to �16, but is it worth it? I too would prefer to pay the pennies & deal online.

[abranei]

Your right because my Experian credit score is very high yet my Equifax is middle road as I've moved house which effects your score also.

I've done both Equifax and Experian. I used Equifax as they seem to have a harder scoring process. My scores are v different in the sense that Experian has my score very high while Equifax score me middle road due to my house move.

The more you know the better position your in. I found incorrect information so I can deal with it

[abranei]

Doh - repeating myself.

For me at least it proved to be a good read and explained the scoring what they like to see and shows you bad or incorrect information. I had a credit card that isnt mine!!

[abranei]

One other point is you can ask who a company who they use for credit scoring you can then speak with the company and potentially get better deals or simply obtain credit that you may not have got otherwise