Closing CC after a few months - Credit Rating

TheEffect

I turned 18 in December 2008. In January, I wanted to get a credit card to start building my credit rating. I thought I'd be fine, spend a little and pay off every month. I applied for Lloyds TSB card and a few others and got declined.

I then applied for Aqua and Vanquis at the same time, getting accepted for both with £250 limit each.

One thing led to another, and I never paid the full balance each month, paying interest. Worse was that Vanquis was upto £200 all cash withdrawals and Aqua was £240 all purchases. I then applied for CapitalOne and got accepted with £100 limit.

I've now realized that I can't handle 3 credit cards, as I'm likely to spend on it if it's just sitting in my draw/wallet.

I'm working full time, and have managed to get the Vanquis card from £200 to £60. I'm going to pay the remaining £60 off next week. Then all I'll have left is the interest to pay in full on the next statement.

I plan on closing the Vanquis card once my next statement has been produced and the interest paid, however that will only be my 5th statement, so I'm wondering whether this is going to have a negative effect, as lenders will see I'm closing accounts after only a few months. I don't want the account active though. I've already cut up the card and left it in my draw.

I plan on starting to pay off the Aqua card in large chunks next month. It's at £200 now and only minimum payment via DD. I can pay the £200 off in 1/2 months, and then I plan on closing the Aqua card as well, just leaving me with a CapitalOne card at £100 and 30% (lowest APR). The CapitalOne card will go to £300 on my 4th statement (im on my second).

So if I close Vanquis and Aqua after only 5 statements, is it going to look bad on my credit report?

dfh

I am not sure but I shouldn't think so as you have not had any missed payments.I closed a capital one and a Asda card after 4 months and did not have any problems when I applied for a virgin card.

mitrant

It shouldn't have any real negative effect on your credit rating. In fact, it might even improve it a tad.

Moggles_2

Congratulations on turning things round
:beer:

I plan on closing the Aqua card as well, just leaving me with a Capital One card at £100 and 30% (lowest APR).

Please be aware that this interest rate is variable.

Cap One could decide to raise your rate(s) at any time (as could Aqua and Vanquis), so I wouldn't base your decision solely on current rates, if I were you.

TheEffect

Moggles wrote: »

Congratulations on turning things round
:beer:



Please be aware that this interest rate is variable.

Cap One could decide to raise your rate(s) at any time (as could Aqua and Vanquis), so I wouldn't base your decision solely on current rates, if I were you.

My parents have agreed to put on as an additional card holder on one of their cards they don't use (it's 15%), so if I ever run over a balance, it's going to be on that card. They'll be monitoring it to make sure I'm not running up huge balances, which I wont.

I'm only keeping CapitalOne as it's easiest, with great internet banking and email alerts, free equifax reports and credit alerts.

I only want 1 current account, 1 credit card and 1 Littlewoods account in my name, so these 3 will hopefully build my credit rating up.

Andy_Ches

I doubt it will affect you. I've had the same kind of situation a couple of accounts closed within a few months of opening and I've been fine.