2 min read
Why history helps
Your business credit file is stronger with a longer record of well-managed accounts. Closing an old account removes that positive history and can marginally thin the file — the opposite of what helps before an application.
When to leave well alone
Unless an account is costing you or carries a problem, there is rarely a reason to close it just before borrowing. Focus instead on building positive activity and keeping everything current. See thin files.
Applying
Keep good accounts open, tidy the rest, then apply online.
Frequently asked questions
Should I close old accounts before applying for a loan?
Usually not. A long record of well-managed accounts helps your file. Closing them removes positive history and can slightly weaken your profile.
Does account history really affect my business score?
Yes — depth and length of well-conducted credit history support your profile. That is why keeping good accounts open generally reads better than closing them.
Related reading
How do I improve my business credit score?
Pay on time, file accounts early, correct any errors on your credit file, and keep credit utilisation…
Read →Does a thin credit file hurt a business loan application?
A thin file is not bad credit — it just means less to go on, so lenders lean harder on live trading. A young…
Read →What is a business credit score?
A business credit score is a rating of how reliably your company repays what it owes, built from filings,…
Read →
Will applying for a business loan hurt my credit score?
Applying for a business loan does not usually hurt your credit score at the enquiry stage, because an initial…
Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.