Next Account/Credit Rating

maurice28

Apologies if this is in the wrong place but didn't know where else to put it.

I was planning on buying something from the Next website, and so signed up without thinking that it's actually the Directory and hence a credit based catalogue service. Not really wanting another credit account, I've just called up now, five minutes after I opened the account, and asked to close it. The guy says it's cancelled, but that it might take 90 days to show as closed on my credit file.

Just wondered if anyone knew:

a) If having that extra account on my credit file will have much of a detrimental effect (the limit they gave me was £300 I think), baring in mind it was open for about 5 minutes and so I obviously didn't use it.

and b) How long it's likely to take to disappear altogether from my credit file?

sallyx

Do you have any other debts outstanding? Are you on any kind of payment plan, DMP, IVA etc?
It will take 12 months normally to disapear I think although it will only appear as a entry and a balance of £0.

maurice28

sallyx wrote: »

Do you have any other debts outstanding? Are you on any kind of payment plan, DMP, IVA etc?
It will take 12 months normally to disapear I think although it will only appear as a entry and a balance of £0.

Well, I have 5 accounts on my credit file (2 of which, a loan and a mobile phone contract are settled) and then 2 overdrafts and a credit card. Probably owe about £3000, but with satisfactory status for all of them and an 'Excellent' credit rating according to Experian. Just concerned about having 6 credit accounts, albeit 2 of which are paid of and this Next one which I didn't even use and was open for 5 minutes

sallyx

I wouldn't have thought there was anything to worry about. If all your accounts are in good order, you have kept up payments on them and haven't defaulted then this won't affect your file. If anything its likely to access you to more credit should you wish it!!! and a better rating in my understanding. i.e. you are not likely to miss payments, low risk.

maurice28

An update to this which has thrown up another question!

I checked my Experian credit score and report today, and a credit check from Next has appeared and knocked about 50 points off my score, moving me from 'Excellent' to 'Good'. I called Experian and asked if there is likely to be any other effect, and they advised speaking to Next and asking them to remove the credit search, although this is entirely at their discretion if they do so.

I called Next but the relevant people don't work on a Saturday. Was just wondering if anyone had experienced this kind of thing, and how likely Next are to take the search off my report?

Also, surely you have to sign a contract before entering into a credit agreement like this with a catalogue company? Am I right in thinking that now I have cancelled the account with Next (after 5 minutes and never having used it!) that as long as I don't sign anything, it will never be really open and will never appear on my credit file?

Phew, sorry if that's a bit wordy, hopefully someone can advise!

milliemonster

Maurice, I don't understand why you are so obsessed with your credit rating?, I doubt Next will remove the search from your file as you planned to order something from them without paying for it immediately (therefore requesting credit and a requiring a search), any credit search by anyone will reduce your score by 30 -50 points anyway and you hadn't actually entered into a credit agreement as yet with Next, all creditors search your file before you enter into any agreement with them.

What does it matter anyway? its not like you already have a poor credit history, your credit history is intact and there are no issues

I think you are just worrying unnecessarily about this, forget about it now and just get on with your life!

halight

Hi,
I closed my next account about 8 months ago. And its still on mu criedit file as setled. So it take a long time for it to be removed. But as you have never used it ands its now closed so you can not use it. it should not matter thats its still on your file. I think banks and that are only intrested in open accounts