Cancelling a credit card

pinkshoes

My OH has several credit cards, only one of which he now uses, so I said he should cancel the ones he doesn't use, as they keep sending him new ones in the post.

Many years ago, he cancelled a credit card, and it ended up coming up on his credit file as the bank having cancelled it at their request, and not him having cancelled it, which apparently lowered his credit score and made it look like he'd been refused a credit card, which was not the case.

He's now paranoid about cancelling the others in case the same thing happens (he's not very trusting of banks!), so can anyone give me some re-assurance that this is unlikely to happen again, and if it does, what can be done.

I only have one CC, so have never had to cancel one.

Thanks.

stephane_2

Once a credit card account is closed it will show as "settled" on your report and that is it, it would never show if the bank closed it, don't know where you got that from....

Saucepot

That ought not happen, post #2 is correct.

Whether to cancel unused cards is a difficult one, as some say it can be good for a credit score, however I prefer to cancel unused cards as it reduces chances of card fraud, frees up space to take new deals out, and makes you a brand new customer all over again.

pinkshoes

I've never heard of that happening either, but he's 100% sure that it appeared on his credit report as having been refused a credit card rather than him cancelling it.

lisyloo

but he's 100% sure that it appeared on his credit report as having been refused a credit card rather than him cancelling it

Well we all think he's wrong in his intepretation of the report.

What soes it say to indicate he was declined a card?

pinkshoes

I shall ask him if he's 100% sure. Perhaps it was AGES and ages ago. He's been really messed about my Barclays recently, who temporarily lost some of his money (£10k!), took forever to find it, then managed to cancel his online banking(!), then sent him red letters over a loan he'd already paid off, so he's just about had enough with banks, and really doesn't trust them! I think he just wants reassurance that he's not going to get any more hassle just for cancelling the old credit cards.

UnderPressure

I can understand where you hubby is coming from, I too have had an absolute nightmare with Barclays recently but thats for another thread.................

So far as cancelling unused cards surely they woul be better just left in a draw for "rainy day" purposes? Or is he trying to reduce the amount of credit available to him for a specific reason?

Either way as said it should not show anything negative on his credit reports as long as no money is owed it is his right to cancel any agreement if he so wishes.

HTH

pinkshoes

He just doesn't want or need the other credit cards any more, and gets fed up with being sent new ones (they presume he's lost them as he doesn't use them), or those cheque things... I guess they could get lost/stolen in the post and end up with someone else running up a debt, so he'd just rather get rid of them in case he forgets about them!

Consumerist

With the increasing concern, these days, regarding ID theft and other fraud I think it would be sensible to cancel the cards if they are not used. If he is worried about the possible effect to his credit rating then perhaps limit the number to two, or three at most.