Cancelling credit cards etc

sammy115

Thanks to all on this board I have made good inroads into my debt!

So far I have cut phone, insurance, utilities,cancelled PPI, got a 0% credit card to shift some debt and done the snowball calculator.

My question is, once I have shifted the debt I was going to cut the cards up. (Well I want to do that anyway), but is it best to ring the companies concerned ie Capital One, Next, La Redoute and Barclaycard up and tell them I am cancelling my account. Will this improve/stabilise my credit rating so that I could obtain another 0% card in nine months time, when this new one runs out.

Advice welcome!

file_wizzard

Basically yes it will help your cause when you want further cards if you fully close the others.

When lenders undertake a credit search they are able to see your total available, and total utilized credit, if the total available is disproportionately high to your base income then they are unlikely to offer decent limits or even an account at all.

sammy115

thanks for that, I gathered that it might help but couldn't fathom out why! Will do it before I fall off the spending wagon (like I did at the weekend - got back on it fairly quickly though)

JAMIEDODGER

hi, i have a next account, although as from today, my balance is £0. my credit limit is £3600. i have asked next on numerous occasions to reduce the credit limit, they say they have but according to my credit report...they havent. as i have now paid them off...i will be closing this account, my question is this...once i have closed it and it has been noted on my credit file...will i be looked upon as being a much better credit risk (for 0% cards for example) as my credit rating is VERY poor at the moment...

dinkylou

Don't forget to write to them/cut up and send back card (record delivery)

I've had times in the past where I've thought I'd cancelled an account over the phone only to find that it wasn't closed.

At least that way you can be certain.

metherer

Closing accounts feels so good!

Have just written a letter to Barclaycard, enclosing the new card they sent me recently, asking them to close my account and confirm in writing its been done.

Having been associated with Barclays (whom I don't like) since 1996 when i opened my first bank account, it feels fab to have finally severed all ties with them.

Now thinking which other accounts icould get rid of. Sure I'm registered with studio cards, so could get rid of that as i don't use it.

This could be my new addicition...

Metherer

Glittermonkey

Sorry to hijack this thread, but can anyone tell me if it is worth writing to catalogue companies and asking them to close the accounts?

I have 3 on my credit report, all from Littlewoods, i dont actually owe anything as i paid the then off on the first statement so they do show as settled, well 2 are settled, the other has a credit limit but no activity since 2004 but doesn't show as settled.

Thanks

GM

sammy115

I am not sure about this one, but whilst my lightbulb moment happened in Dec 05, I am not yet out of retail therapy mode, so I would be eager to eliminate any debt temptation. It doesn't sound like you have that issue (just read your payday post - its a good feeling wanting to kiss the postman, not set the dog on him LOL) but it may help your Credit rating.

metherer

To be honest, I'm not sure either, but as the last post said surely its better to get rid and be free of the temptation.

As I said in my earlier post, I have an acount with studio cards. Because of that they keep sending me catalogues, putting temptation in my way. (Letter written this evening to close it)

So, I'd say get rid. Doing so might or might not help your credit rating but it certainly won't make it worse!

Metherer

bank_of_slate

Sammy,
Whenever you feel the urge to spend, just go onto the forum on here called 'Freebies - no spend required'
There is loads of stuff available and it feels like like shopping.
Plus it feels great to come home to loads of goodies shoved through the letterbox!
...Linda xx