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  • FIRST POST
    • worriedDan
    • By worriedDan 13th Mar 17, 8:32 AM
    • 186Posts
    • 548Thanks
    worriedDan
    credit card rate hike
    • #1
    • 13th Mar 17, 8:32 AM
    credit card rate hike 13th Mar 17 at 8:32 AM
    Hi,

    Just thinking ahea... If say in 8-9 months, when my credit card provider decided to increase my interest rate, I am aware that I have the right to reject the higher rate, close the account but still pay the money back over time, at the previous rate. This would be fine for me as I am not wanting to borrow any more money anyway.

    How does this affect credit score though? I would still be making at least the minimum payment so would this show as negative on my score?
Page 1
    • zx81
    • By zx81 13th Mar 17, 8:37 AM
    • 14,049 Posts
    • 14,745 Thanks
    zx81
    • #2
    • 13th Mar 17, 8:37 AM
    • #2
    • 13th Mar 17, 8:37 AM
    It will show as a closed account and lenders will take their own view on that.

    Anything it does to your score is irrelevant.

    If you do close up, consider getting another to maintain credit history, but clearing in full each month.
    • worriedDan
    • By worriedDan 13th Mar 17, 8:46 AM
    • 186 Posts
    • 548 Thanks
    worriedDan
    • #3
    • 13th Mar 17, 8:46 AM
    • #3
    • 13th Mar 17, 8:46 AM
    It will show as a closed account and lenders will take their own view on that.

    Anything it does to your score is irrelevant.

    If you do close up, consider getting another to maintain credit history, but clearing in full each month.
    Originally posted by zx81
    I would definitely try and transfer elsewhere but I know that there are no guarantees of getting a new card. I would probably have to just keep paying the balance off at the old rate. Surely they couldn't mark this as a default if I was keeping up with payments?
    • January2015
    • By January2015 13th Mar 17, 9:03 AM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    • #4
    • 13th Mar 17, 9:03 AM
    • #4
    • 13th Mar 17, 9:03 AM
    I would definitely try and transfer elsewhere but I know that there are no guarantees of getting a new card. I would probably have to just keep paying the balance off at the old rate. Surely they couldn't mark this as a default if I was keeping up with payments?
    Originally posted by worriedDan
    Providing minimum payments are maintained creditor could not mark your credit file with a default.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • January2015
    • By January2015 13th Mar 17, 9:05 AM
    • 1,757 Posts
    • 4,746 Thanks
    January2015
    • #5
    • 13th Mar 17, 9:05 AM
    • #5
    • 13th Mar 17, 9:05 AM
    This MSE link might prove helpful
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
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