Cancelling Credit Card

Angel4256

I am in the process of trying to reduce my 5 outstanding credit card debts. I have managed to reduce the balance of one of them to zero & cut the card up. When I called the credit card company to close the account they recommended I keep it open as it will reflect on my credit rating that I have been a good payer (if I close it it will not show on my credit report). Is this true or a sneaky attempt by the credit card company to tempt me to spend again?? :cool:

Moggles_2

No, it's not true.

Cards that are closed down and marked "settled" stay on your file for six years and indicate that you can handle credit cards well.

May I ask which card provider is involved?

Angel4256

Virgin!!! :cool:

Moggles_2

Thanks for your feedback.

Attracting new business is expensive and most lenders prefer to retain existing customers.

Moggles_2

P.S. In closing your Virgin account, you would lose one of the few credit cards which allow you to route money through your bank account at balance transfer rates. With its market-leading follow-on offers, this card is worth keeping in your deck, IMO. Just a thought