Should I close cc account?

pollie67

Marbles cc have written to me to say that the interest is shortly going be raised to 33%!!! They have given me the option of closing the card and paying off the balance at the current rate (currently owe 4000 - have a 10500 credit limit). At the moment paying just over minimum payment each month. If I close the card but am still paying off the balance how will it affect my credit rating? Recently applied for another 0% interest card but was turned down on affordability (currently have a couple of other cards). Will it improve because will have less available credit, or will it look bad that I have closed an account with a balance outstanding?

Thanks

pollie67

Can anybody help?

Thanks

never-in-doubt

assuming you only have the one card then moving away will not affect your score., look at Virgin/MBNA for good 0% transfer deals.

If you close it and go onto their repayment plan, this will affect your credit score so best to BT away to a new lender, get a new account with BT at 0% for a few months....

Moggles_2

If I close the card but am still paying off the balance, how will it affect my credit rating?

There's nothing to lose really. Provided that you make at least the minimum payment required and pay up on time each month, your credit rating remains unharmed.

Recently applied for another 0% interest card but was turned down on affordability (currently have a couple of other cards)

May I ask which provider turned you down?

duggie1982

never-in-doubt wrote: »

assuming you only have the one card then moving away will not affect your score., look at Virgin/MBNA for good 0% transfer deals.

If you close it and go onto their repayment plan, this will affect your credit score so best to BT away to a new lender, get a new account with BT at 0% for a few months....

Why does it affect your credit rating if closed the account with the repayment plan?

pollie67

May I ask which provider turned you down?[/QUOTE]


Thanks for replying. I applied to Halifax but realise now this was probably a bit stupid as Marbles have been taken over by BoS.

I just wondered if affordability score would improve as I would no longer be seen to have as much credit available if I close the Marbles card.

Moggles_2

pollie67 wrote: »

I applied to Halifax but realise now this was probably a bit stupid as Marbles have been taken over by BoS. I just wondered if affordability score would improve as I would no longer be seen to have as much credit available if I close the Marbles card.

Your credit rating probably won't improve appreciably unless you either increase your income or clear the balance, unfortunately.

Halifax is not known to score particularly harshly. Is it possible to move the Marbles balance to a new 0% BT card in your partner's name, if there is one?

pollie67

Moggles wrote: »

Your credit rating probably won't improve appreciably unless you either increase your income or clear the balance, unfortunately.

Halifax is not known to score particularly harshly. Is it possible to move the Marbles balance to a new 0% BT card in your partner's name, if there is one?

Unfortunately not, partner recently made unemployed one of the reasons we are trying to get control of our money. My credit rating is good, just have too much of it I think. Will just have to keep chipping away at the balance. Thanks for your help.