CC - is it worth keeping one?

isellapples

Hi all, im a uni student and I got a Halifax One credit card ~3 years ago when i opened my student account (currently has £2k 0% overdraft, 1k used). I've never really used it - mainly because they scare me (knowing people who owe several £k on theirs)! Ive also never owed anything on it for more than a month - except once when i forgot it had a balance, was late paying by 2 days and got kit with a £15 charge! :mad: Anyway, I've been trying to decide whether or not to cancel it, then 2 weeks ago they decided they'd go and increase the limit on it from £700 to £1450 without me asking, because of the way i have(nt) been using it - i actually resent them doing this without me asking, as now its just made it a pointless temptation. So yeh... would keeping it and not using it give me any benefit in the long run with credit ratings etc, or should i just go ahead and cancel it? Or go 50/50, call them and ask them to reduce the limit on it?

cheers

normanmark

Just call them and ask them to reduce the limit to what it was previously.

CLAPTON

If you have a CC then set up a DD to pay the full amount each month; then you will never forget to pay and never be charged interest (although you will need uficient in your current a/c to pay the bill.

some people find CC very useful... but pay in full each month

your credit rating will be improved if you use it regularly but pay in full..

fudgecat

I agree that it is irritating(and really quite irresponsible of the lender) to increase your credit limit without consultation. Halifax did this to me and telephoned them to take it back to where it was, as I did not need it and it might affect applications elsewhere. Remember that a credit card is useful for paying for items where is gives you extra protection in the event of goods being faulty, or you being ripped off by non supply of goods or services.
You are right to be wary of credit, but this commendable attitude means you are unlikely to get into difficulties...:T