canceling a credit card

saver_1_2

Hi all.

At the age of 30 something i have had my one and only credit card for a year now. It's a no frills no gimmick card but now i have had one i may find myself brave enough to move on to one that gives reward for me staying loyal in the way of cash back. So how do i cancel my card. i would assume i need to give notice etc.

Btw i pay my balance off in full each month

Cheers

chattychappy

You should check the T+Cs, but not withstanding that most will take a cancellation over the phone. Sometimes they offer to confirm in writing. Normally they don't want the card back - they tell you to cut it up.

Bear in mind that you will remain liable for any transactions in the pipeline and any continuous payment authorities you have set up. These may still be processed despite your cancelling the card. (Particularly of PPI and other insurances.)

If you only have one other card, why not considering holding on to it in case of emergency? Also could improve your rating by running a couple of accounts.

stephane_2

If it is your only credit card and looking for one with better incentive I would strongly suggest that you leave it open even if you don't use it, lenders like to see active accounts on your file and because it is your only card it would play against you if you were to close it....

saver_1_2

If i leave it open and never use it will they charge me for not using it or close it down eventualy.

chattychappy

I've had a few where they've said they can charge a dormancy fee. But this has never happened to me - after a while they've written saying they will close the account unless I ring them back (or send back a tear off slip) to say I still want it kept open.

To be sure of avoiding a dormancy fee you would have to check your T+Cs and if there is provision for one then use the card once a year or something.

stephane_2

saver_1 wrote: »

If i leave it open and never use it will they charge me for not using it or close it down eventualy.

I doubt it very much....some do charge a dormancy fee after sometimes 12 months...you would need to look at your T&C but they would not close it without giving you notice of it, and I doubt very much that they would do it anyway. But to be honest all you have to do is use the card once every few months and pay in full when you get your statement...simple

Meadows

saver_1 wrote: »

Hi all. At the age of 30 something i have had my one and only credit card for a year now. It's a no frills no gimmick card but now i have had one i may find myself brave enough to move on to one that gives reward for me staying loyal in the way of cash back. So how do i cancel my card. i would assume i need to give notice etc. Btw i pay my balance off in full each month Cheers

Why not hang on to it as a reserve just in case, we changed our card a few year ago but kept the one we had been using (never used it since) just in case we ever need it. It is a handy back up if we go on holiday, we leave it in the safe with the passports and there should the need arise (loss, theft etc).

Fruit_and_Nut_Case

All the above replies are good. In addition, there is no guarantee these days that you would be offered another card so it makes sense not to cancel your existing one before you have a new piece of plastic in your mitts.

saver_1_2

Thanks for all the advice. Seems to be a good idea to just hang onto it and use it just once a year if i do decide to get another one