Will cancelling cards help?

Fliss_M

I have been planning to save over the rest of the year for a new tv. But lo and behold, just when I deside this, the car has a £400 service and the tv starts acting up!

So, what I thought was the M&S card and utilise the 0% purchases for 10 months. Not what I wanted but at least its interest free

Think is I have many credit cards. The most resent was Virgin in Feb.
Heres the list
Virgin - limit 5500
HSBC - limit 4500 (own bank)
Barclays - limit 4500
Tesco - limit 3500
Debenhams - limit 3000
Nationwide - limit 950

The oldest are hsbc and nationwide, there the ones that got me into the trouble you see below (or started it neway) But most are through credit card tarting. All the current debt is on the virgin (below) and I use the tesco and the debenhams ones gererally. Paying them off each month.

My question is, should I cancel the ones I dont really use (nationwide, barclays, hsbc) and if I do will this help or hinder the application I intend to make at the start of June for the M&S card?

(also, not entirely sure but believe my credit rating is 800 odd)

Fliss_M

Oh, and plus 2 store cards for mothercare and new look and I just cancelled (bout 2 months ago) my evans card as I have lost enough weight that I dont shop there any more (blows own trumpet hehe)

*Chattie*

I'd certainly cancel the Barclays and HSBC as you have potentially £9000 credit between the two and although you aren't using them if you max them out then M&S will look to see if you can afford their card as well.

Any

*Chattie* wrote: »

I'd certainly cancel the Barclays and HSBC as you have potentially £9000 credit between the two and although you aren't using them if you max them out then M&S will look to see if you can afford their card as well.

I second that.
I just canceled my Halifax for the exactly same reason and they offered me 6.9% life of debt balance transfer (however I don't need that).
So they might even give you some months 0% purchases?? I know some cards do to retain their customers.
And if they don't, then you will have more chances to get the M&S (I have it to, see my signature:-))

Fliss_M

Hummmmm, interesting. You dont think cancelling them will harm my rating? As may sites do suggest that.

I dont think I will bother with HSBC, I tried them before, their rather naff. May try Barclays tho.

My overall debt is running at 113k (108k mortgage) so I am worried at reducing my debt to credit ratio given theres a medium credit score needed for M&S.

Mulling time I think, any other opinions?

Also, would cancelling them now make any difference in time for the start of June? If not I may cancel them after I get that card, I dont expect to need any more credit after that. I am determind to stop tarting and get the virgin cleared before the 0% runs out.

scott_247

This is something i would also like advice on.
My cards i currently have, along with balance are:
Halifax One - £9500 Limit - £0 balance
Capital One - £10500 Limit - £0 balance
Egg - £11250 Limit - £9500 balance (Fixed at 0% for another 10 months)
BT(MBNA) - £9500 Limt - £8600 balance (Fixed at 0% for another 13 months)
Barclaycard - £2000 Limit - £1800 balance

So...thats £42,750 of potential credit!

Moggles_2

Would cancelling them now make any difference in time for the start of June?

If you feel you have an excess of available credit, it's advisable to check your credit reports to make sure the a/c is marked "settled" before you submit a credit card application.

The whole process (from the initial phone call to your lender) can sometimes span a couple of months, so allow plenty of time

Moggles_2

scott_247 wrote: »

My cards, along with balance are:
Halifax One - £9500 Limit - £0 balance
Capital One - £10500 Limit - £0 balance
Egg - £11250 Limit - £9500 balance (Fixed at 0% for another 10 months)
BT(MBNA) - £9500 Limt - £8600 balance (Fixed at 0% for another 13 months)
Barclaycard - £2000 Limit - £1800 balance
So that's £42,750 of potential credit!

The national average is five, so if you have five credit cards or fewer and none is maxed out, it's unlikely your credit rating would be harmed by keeping these cards, unless you have a lower than average annual income.

That said, with each successful credit card application, your available credit will increase in relation to your income and there will come a point when you must consider closure.

I think you have to treat each credit card on its own merits. IME, some card companies (eg. Barclaycard, MBNA) have regular, existing-customer offers and MBNA will even waive BT fees sometimes, if you're prepared to negotiate over the phone. Others (eg. Capital One, HBOS, HSBC) reserve their best deals for new applicants.

In general, unless a card has a particular benefit, then I would close the account. Firstly, having lots of credit, even if not used, may put off potential lenders and secondly, by cancelling a card you can re-apply to that provider as a 'new' customer and take advantage of any introductory deals on offer.

Another good reason for phoning customer services to cancel an unused card is that occasionally you're offered an incentive to stay

Some lenders will not consider applications from former cardholders for various periods following closure. Others accept applicants straight away
In all cases, it's advisable to check your credit reports to make certain the account is actually closed down and marked "settled" before you re-apply

Any

Fliss_M wrote: »

Hummmmm, interesting. You dont think cancelling them will harm my rating? As may sites do suggest that.

But there is a new trend now - noone is 100% sure whether they will keep their job. So other thing banks are looking at is - if you loose your job, how much debt will you be able to run up before they find out? Debt that you might not be able to repay... And that is what any new bank is going to be looking at - he has got huge available credit, do we want to add to it?

Everyone has got their limits - it's not only the ratio of available versus used limit. It's also how much you earn versus available credit..

It's like with mortgage - back are the days when we are only able to borrow 4 times of our income...

Fliss_M

Hum, very interesting. I always thought this but reading it always apeared that banks never did. Thanks for this. Think I will cancel HSBC and Nationwide. I get CPP through Barclays so I can check they read "settled". Plus I may get an offer from Barclays over the 0% if I call

One thought. Another thing I read is that old credit counts for more then new. What are your thoughts? I ask as the 2 I intend on cancelling are also the oldest (sept 04)

Any

Fliss_M wrote: »

Hum, very interesting. I always thought this but reading it always apeared that banks never did. Thanks for this. Think I will cancel HSBC and Nationwide. I get CPP through Barclays so I can check they read "settled". Plus I may get an offer from Barclays over the 0% if I call

One thought. Another thing I read is that old credit counts for more then new. What are your thoughts? I ask as the 2 I intend on cancelling are also the oldest (sept 04)

You are right, banks never did but that is why they are now in the kind of trouble they are..
As for the oldest credit scoring the most... I don't really know how much that is true.
I would probably call Barclays first (as they are more likely to offer deal) and they will offer SOMETHING. You don't have to cancel there and then. Say you will think about it and call again. Or say O.K. I am not canceling and leave it at that. At least you will know whether they give you any good deal.