M&S CC - Interest hike, couple of questions pls?

Mindspace

Hello all, Hope you can help me clarifying few questions.

I have a M&S cc with £5200.00 limit and £5100.00 outstanding at the moment. I've got a letter saying that they are increasing my interest to 25.9%APR from 20.9% APR.

Bottom of the letter says that I have an option to close the account and repay outstanding balance at current rate of interest.

I'm tempted to close the account since it is an extra up to £30 interest, and make regular payments until the balance is cleared.

1. Will closing my account affect my credit rating or file? do other lenders know an account has been closed?

2. If I can get hold of a lower rate BT at a later date, can I transfer it to a closed account.

appreciate your help. Thanks.

Any

As far as I am aware:

1/ no - yes they will know it's closed, but that is not going to affect your scoring.
2/ yes. BT is just like paying a cheque or transfer in, so why not?

Hopefully someone will come soon and confirms this or tell us any different.

Mindspace

Thanks Any, you might be right, with your logic.