To close or not to close?? Help Please!

s0680302

Hi there. I have a Bank of Scotland One Card, with a credit limit of 1500 and it's pretty much maxed out to that. I've just finished studying as a full time student and i'm now working mostly full time (but on a 0 hours contract with no guaranteed hours) and studying with the OU. I earn about £1000 a month after tax, and have to pay £320 rent and then about £120 in bills after that.

Recently BOS said the interest rates would go up from 24 odd percent to 25 odd, and If i wanted to keep my current rates I would need to close my account by the 11th of November and pay it back.

A couple of days ago, after checking my credit rating with Experian (which was at 899) and finding that it had risen to 999, I went to try and apply for another card to balance transfer. I tried egg and the BT one. I was declined for both, so I'm obviously having problems getting credit.

My worry about closing it is that it's my only way to access emergency cash if I need to, as my two student over drafts are maxed out at £1500 and £1900. I am trying to pay about £100 a month back to each of them (got my first O/d down from 1600), but obviously if I close my credit card i wont be able to use it any more, and won't be able to get more credit if I need it it seems, despite having a top credit rating.

So, i'm looking for your advice, should I close the account or suck up the 1% rise in interest as an emergency?

Cheers.

BugsyBrowne

s0680302 wrote: »

Hi there. I have a Bank of Scotland One Card, with a credit limit of 1500 and it's pretty much maxed out to that. I've just finished studying as a full time student and i'm now working mostly full time (but on a 0 hours contract with no guaranteed hours) and studying with the OU. I earn about £1000 a month after tax, and have to pay £320 rent and then about £120 in bills after that.

Recently BOS said the interest rates would go up from 24 odd percent to 25 odd, and If i wanted to keep my current rates I would need to close my account by the 11th of November and pay it back.

A couple of days ago, after checking my credit rating with Experian (which was at 899) and finding that it had risen to 999, I went to try and apply for another card to balance transfer. I tried egg and the BT one. I was declined for both, so I'm obviously having problems getting credit.

My worry about closing it is that it's my only way to access emergency cash if I need to, as my two student over drafts are maxed out at £1500 and £1900. I am trying to pay about £100 a month back to each of them (got my first O/d down from 1600), but obviously if I close my credit card i wont be able to use it any more, and won't be able to get more credit if I need it it seems, despite having a top credit rating.

So, i'm looking for your advice, should I close the account or suck up the 1% rise in interest as an emergency?

Cheers.

First of all mate your credit score for experian was 999 which does not mean a thing because they don't lend money

The reason you got declined off BT&EGG because you failed their credit score,so yes you do have a top credit rating with experian which means nothing,banks do their own scores and won't see what score experian have gave you.

You need to wait a few months and get your balance down b4 applying for anything else.