advice please re: cancelling CC

sistercas

I have recently managed to pay off a CC, I have 2 others with varying amounts on. I know I will not use this CC again. This might sound daft but will it affect my credit rating if I close the CC account?

DarkConvict

Your history wouldn't change, as it will still be there for 6 years.

But you rating will improve if you close needed credit cards, as it means you have less currently credit available, so more likely others will lend to you.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score#improve

Cancel unused credit cards, debts and accounts.

Access to too much credit, even if it isn't used, can be a problem. If you have a range of unused credit cards, cancel most of them; this lowers your available credit and should help (see the Cancel Old Cards article for full info on what to close when).

However long standing bank accounts with good credit histories can be a benefit to your credit score, so they're often best left open

Tixy

Hi sistercas

The other thing you could consider is that once a balance is cleared from a card quite a few providers will offer you a good balance transfer deal to keep your custom. If you have another card with a high APR and a balance you will not clear in the next month or so then you could try this. Wait until you have received a statement that shows no balance and then ring up and ask what BT deals they have on. (The advantage of this is that they don't need to do a credit check, unlike if you apply for a new 0% card).

There is a sticky on the credit card forum called unoffical balance transfers which may give you an idea whether your provider is likely to do this.

sistercas

thankyou Darkconvict and Tixy

I have telephoned halifax to close the account and you were right they put me through to customer loyalty or something. they have offered to increase my credit limit up to £10000 :eek: and offered me 0% on balance transfers and they have reduced my apr by 4% ! :rotfl:
I think I may take up the 0% for my other 2 CCs :j

Tixy

Thats great - although 10k is a huge limit - use it for the transfers but don't go spending for the sake of it ;)

JimmyTheWig

Just remember to at least cut up (if not cancel) the other two cards. You don't want to shift the balance to 0% and then rack up the debt again!

sistercas

Tixy wrote: »

Thats great - although 10k is a huge limit - use it for the transfers but don't go spending for the sake of it ;)

I will only use it for my 2 balance tranfers ( which is just under £2000 for both) I wont make the same mistakes again

thanks again

MrsTinks

Then remember to cancel the other two