Question about closing cards

PontyEnd

Hi all, just a quick question..

I have a current account with Natwest and a credit card with them with a limit of £800.

I also have two other credit cards, a Virgin and a Capital One. These have £3100 and £2100 limits respectively. The balance on both of these is zero and I strongly intend to never use these again!

My question being is it beneficial to close both these cards and keep the Natwest one going for big emergencies and to improve my credit rating by making minimum payments (£6) each month?

Also, to close the cards is it just a case of calling them and saying I wish to close the accounts? Thanks.

Svenena

When you say 'minimum payments', do you mean minimum spending and paying off in full? Or using it for a large amount and only making the minimum payments? Because the second option will incur interest (unless a 0% offer) an it is also recorded on your credit reports that you're only paying the minimum. If you're using and paying off in full, that shows responsible borrowing.

There are mixed opinions on here regarding keeping unused cards, but if you're adamant you'll never use them again, there's probably not much point keeping them. Although the limit on the Natwest card isn't very high - do you also have savings to cover you in case of an emergency? You can cancel CCs by phoning up. I'd ask for written confirmation of the cancellation, because I like to have it for my records, but it's up to you.

iceage3

Keep them open but watch out for the interest rate hikes!!!!!!!

PontyEnd

Svenena wrote: »

When you say 'minimum payments', do you mean minimum spending and paying off in full? Or using it for a large amount and only making the minimum payments? Because the second option will incur interest (unless a 0% offer) an it is also recorded on your credit reports that you're only paying the minimum. If you're using and paying off in full, that shows responsible borrowing.

There are mixed opinions on here regarding keeping unused cards, but if you're adamant you'll never use them again, there's probably not much point keeping them. Although the limit on the Natwest card isn't very high - do you also have savings to cover you in case of an emergency? You can cancel CCs by phoning up. I'd ask for written confirmation of the cancellation, because I like to have it for my records, but it's up to you.

Well I don't intend to use the Natwest card to fund everyday purchases as it's what got me into trouble in the first place. The balance on that card is about £400. So is it better paying say £20 each month on that card.

To be entirely truthful I don't trust myself with the other cards . Regarding emergencies I live with my parents and will be doing until at least the end of the year until my girlfriend graduates and during this time hopefully I can build up my savings.

Svenena

If you don't trust yourself with the cards, get rid - it's very easy (I know from experience) to be tempted and end up in trouble! What's the minimum payment on the Natwest card? You should pay as much as you can off each month if you're paying interest on it. If you can only afford the minimum payment, set up a direct debit to cover that, and also a standing order for say £1 - this avoids your credit report showing you're only making minimum payments.