Cancel Your Unused Credit Cards

mr.steve_2

Thanx, I'll try them!

johnllew

Instead of Egg in the example, use any other 'old' card's cheque facility to create a large debt (write the cheque to yourself and invest it wisely), then immediately clear the debt by way of the 0% balance transfer to the 'old' card.

Most credit card cheques these days have a handling charge of between 1.5% and 3% and charge interest straight away. Such advice could cost you dear.

Caterina

I am a bit nervous of cancelling any of my (few) credit cards because the ones I have were issued while I was full time salaried and with a good income - hence plenty of credit available in case I need it.

Now I am self-employed and my earnings are below taxpayer level, so I would not get anywhere near as good a credit limit as I did before.

A few years ago I was victim of credit card fraud, someone spent nearly £7,000 on my card. The card company thought it was me and increased my credit to £10,000.

The fraud was then discovered and investigated but the high credit limit was not taken away, YIPPEEE!!!

Caterina

System

I have written twice to Marbles cancelling my account, yet I have still had no reply from them? Does my account exist still if they haven't acknowledged my letters?

yulson

I remember reading somewhere (not MSE I hasten to add) that your credit rating could be adversely effected if you cancel all your dormant credit cards in one go. The advice was you should only cancel ONE of your credit cards every six months or so, as if you cancel them all at the same time, this effectively wipes the credit profile you've built up (one week with lots of credit available to you and the next week a massive reduction).

Does anybody know if this is true, or can I just get rid of the lot right now?!!

MSE_Martin

I wouldnt cancel all cards. This is a balance - all unused cards whilst leaving yourself a some available credit if necessary (keeping Egg dur to it sanniversary BT offer).

I have no info that cancelling all at once impacts your credit score. I've had some priviledged access to credit scorers, but each one is different and there are vagaries. If you have 20 and are going to cancel 18 of them - then staggering is probably a reasonable precaution. If you have 10 and are cancelling 3, i'd do them all now

sorry to be less specific, even after years of doing this, its an area that info is VERY tough to find.

martin

Smiley_Mum

I came across this about credit scoring and although the site is American in origin, the information maybe somewhat relevant to our credit scoring system and give you an insight into how the credit card companies work -

http://clk.about.com/?zi=1/XJ&sdn=credit&zu=http%3A%2F%2Fcreditscoring.com%2F

Check under "canceling credit cards" under 5/5/03 as the link doesn't go direct to the page.

Matti_2

I had a positive balance of 1p on my old MBNA account and they sent me a cheque when I closed the account!!

It was personally signed by someone, then posted 1st class

I didn't cash it as it would take more effort to go the bank, I may frame it for a laugh.

System

Martin. Your comments in an email received today confirmed that cancellation of unused credit cards is an extremley good idea. I fully agree with you but for clients who no longer know how many and who with they hold cards with is there away of discovering whom they hold cards with ?? maybe credit searches ?

I look forward to your recommendation.

John

System

John,

You can get a list of your Credit Cards (and your other loans) by purchasing a copy of your credit file from quifax/experian etc. I think it costs £2.

If you are cancelling cards (or if you are reducing available credit balances), it takes few months before the change shows up on your files.

Therefore, you must cancel your card early!

Don't leave until you come to apply for new credit because if you do the new lender will see the account as active when they look in your file.