What should I do next? Advice needed!

sullywoo

Hi all,

I shall try and keep this short and sweet - if you can offer any advice I would be most grateful.

I have had 3 credit cards in my life and all 3 have always been paid off without problems and I owe nothing to any of the companies (Barcalys, Virgin, Halifax). Only one of the cards is still active (Halifax) and, I am guessing because I haven't used it in a quite a few months now, they have written to me to say they are closing my account with them and will not reopen it. It doesn't worry me too much because I don't use it, but it is nice to have the security of a CC in your wallet!

The only other thing to mention is that a couple of months ago I did apply for a Sainsbury's card and was declined. I obtained my credit record after this which is all fine and after some investigation I learnt that it was probably because I already had a card with Halifax, which I wasn't using!

Anyhow, what I need to know is; should I apply for another CC - as I mentioned earlier it is nice to know it's there in case of emergencies?! If so, who should I go with - I am worried that Halifax's decision to no longer have me as a customer might have a knock-on effect with other companies - is this the case? Or would I be better off not doing anything for a few more months and then applying? I really have no idea what the best option is so please feel free to throw any advice my way!

I am moving house in 2 days time (renting, not buying) and so will be setting up accounts with BT, gas, electricity, council tax etc (I am currently in all-inc rental accom.) and I am guessing all of these things will affect my credit rating???

Many thanks - I look forward to reading your replies!

androidgamer

we all know that when applying for credit, you are risk assessed (credit checked) on your financial situation to see if the money credit cards lent will paid back (or can be recovered).

However, credit checks happen all the time from setting up mandatory direct debit's (gas + elec) to applying for a job (mainly for financial organisation like a bank), this where the problem lies. Too many credit checks don't necessarily reduce your verifiability for credit, but Credit Card companies also score you on how profitable you are or can be to them.

If you have had no outstanding debts, bills or loans for some time shows your savvy about your cash, which is a good thing, but to them, you being savvy does not contribute to their pot of gold (Mansion's, Rolls Royce's, Chauffeur's & Butler's don't grow on tree's you know!!!), which inadvertently puts you to the back of the pile (or in the bin).

On a final note, with Halifax terminating your account may hinder future credit decisions, not so much a blacklist but a flag against your credit scoring, so I'd say hold off for a few months then re-apply, as the credit card isn't a necessity at the moment

CLAPTON

you have three CCs
one has been closed
so that means that the other 2 are open

start using them for things you buy anyway, petrol, food etc and pay in full each month

preverses them as emergency money and helps maintain/improve your credit rating