Home » Forums

[MSE Dan]

This thread is specifically to discuss the content of the

Old Credit Cards: Should I cancel them?

To discuss or ask a question about this article: click reply

[The Boss]

As usual I put this thread forward as a warning :-

http://forums.moneysavingexpert.com/....html?t=175234

[killergaf]

Hi there

When I retired, I decided to cancel all of my credit cards, as I would in future be on a low fixed income. When I needed a small loan to help me buy a new car, I was told that I did not have a credit rating.

I contacted Experian and was sent a 14 page document showing all my previous credit history, all good and all paid in full and was told that because I did not have any debt, I was not considered a good risk.

What a crazy system. So presumably if I was an out-of-work waster, I could get all the credit I wanted, because I already had lots of debt. No wonder this country is in the state it is!

[The Boss]

Its not about securing credit by being an out of work waster - plenty of people that work have debts, and employment status and length of time with an employer is a major factor in deciding whether to grant credit.

[RDA]

I have a Sainsbury's Bank Gold Card which provides a free annual family subscription to Card Protection Plan worth at least £20 a year.

I don't use the card, but they keep trying to get me to close the account, which I won't until they change their T & C's.

Remember to check all the benefits of your cards before you consider cancelling them.

[carpy]

i think the virgin card is worth keeping because 9 months ago they offered me a BT @0% for 9 months with the fee capped at £35 as an existing customer

[Hillfly]

Yes and also you get good discounts shopping using the members shop area for Virgin cardholdrs - like 13% off comet etc. Definitely a keeper!

I also keep a Nationwide credit card for overseas trips as they don't charge and transaction fees - they simply convert at the days rate of exchange and that's it.

[Amberdarcy]

Hello

A colleague's husband accidentally paid more of his credit card leaving it in credit. He hasn't used the card for 2 years and got a letter this morning charging him £10 for being in credit. Can they do this?

[georgewilson]

Greetings!

I too have had a Abbey credit card which has not been used for a while (I keep it for emergencies) and is £3.00 in credit. I have just received a letter from Abbey telling me that if I dont use it they will charge me £10.00 for being in credit !!!! Is this another disgusting ploy by the banks to grab one's money? What ever happened to the days when you felt the banks were decent approachable institutions worthy of your trust? Nowadays, they run on a fuel called 'deceit'. If the devil ever wanted to win advocates, he would call into the banks first !

[paradoxia]

Ask them to send you a cheque for the £3 you are in credit - job done!

[paradoxia]

Amberdarcy - I think they have to give 30 days notice before they charge you this fee

[edda]

Goldfish will not send final confirmation that the credit card has been closed.

Each time I write, all I get is the same computer generated letter (we are sorry etc) which states that the card will be closed 'some time in the future'

[catlover1510]

My wife had a Capital one card about five years ago,she has cleared everything and not used the card for the past four years,in fact she cut
it up.

She has now recieved a demand from them asking for over £400 pound. After speaking to them on the phone they dropped it to £200

I know that she did not cancel the card but it does seem rather a lot when she does not have the card and has not recieved any statements from them.
for over four years.
ANY ADVICE PLEASE?

[eribar]

Any idea why Capital One wanted £400 off you? was it an old debt or charges for not using the card?
I have just cancelled my Halifax One card as they are just about to introduce a 50p a month charge if you don't pay any interest!!!!!
Anybody know of any other cards which have slipped this in?
Martin please note for future update

[lisyloo]

I think you need to verify what these charges are for and then come back for advice.

[raf300]

Anyone know whether it is better to cancel the ones you dont use and not have too many?

And does too many dormant CCs affect credit rating?

[absfabs]

Originally Posted by raf300

Anyone know whether it is better to cancel the ones you dont use and not have too many?

And does too many dormant CCs affect credit rating?

I've just cancelled 3 credit card accounts, they had not been entirely dormant, but they also did not offer anything adventageous as the new customer incentives had run out.

The theory behind this is that the potential credit facility on your dormant cards may adversely affect the credit limit you might be offered when you apply for a new card with say 0% offers or cashback.

I had just moved my balance onto MInt at 0% for both purchases and balance tranfers (there was a balance transfer fee, though), and I hope closing underused accounts will put me in a better position when I want to move this again in 10 months time.

[beedeedee]

Slightly off - but useful.
If you cancel the cards - don't cut them up or anything, just buy a small wallet and stuff them in there, along with old filling station cards, library cards etc. If you should have the misfortune to be mugged - hand over this wallet instead of your real one.......

[MidgeyCrystal]

My uncle has just died and I have several credit cards in his name that I need to cancel - what is the easiest way to do this - can anyone advise me?

[ThankYouAndEnjoy!]

Originally Posted by Amberdarcy

Hello

A colleague's husband accidentally paid more of his credit card leaving it in credit. He hasn't used the card for 2 years and got a letter this morning charging him £10 for being in credit. Can they do this?

hello

the banks are not charging you for being in credit, they are charging you as part of a strategy plan to either lose or use your custom. It costs banks a sum of money to keep your card product on their system. By sending these letters out, you either use your card (and if you dont pay in full the banks earn interest) or you close down your card and it saves on their 'costs'

simply strategy....