Closing one c/c, does it have a positive effect?

GettingItRight

Hi all,

The title might be vague, just didn't want to make it too long.

I think by mistake I have just closed an old cashback card which I see Halifax not advertising anymore. The reason I did this was because I want to open up one of their Clarity card (non reward version), as I go abroad often.

I was told by the Halifax rep on the phone that I would need to close the cashback card and wait a further 30 days in order to be able to apply for the Clarity card. Perhaps in haste I closed my cashback card too soon. I realise now that with the Clarity card I will still get charged interest on cash advances, even if I go into store and pay it off a week later. Still it would a great card to go abroad with, along with my Nationwide C/C.

I think I have perhaps made a mistake in closing my cashback card, but if I get the Clarity card it would help me out for my regular visits to Lisbon.

My query is that by closing a C/C account, could that make a big positive difference on any future C/C application? In other words would I more likely be accepted for one as I have less credit exposure?

Thanks for any thoughts you can share

ironlady2022

Firstly with Halifax, you can only have one credit card with them at a time. The Halifax Clarity is the best that there is at the moment, so if you are really interested you had no choice but to close it down. With regards to it affecting your score, well closing down cards with limits allows for a higher limit to be applied elsewhere.

EG Old Halifax Credit Card - 5k limit

Income: 15k a year say

Limit to income ratio is 5k:15k so this will have used up a third of available credit.

Closing it down means the ratio is a lot better and your next credit card may allow for an even higher limit.

Please note I have not taken any other cards or loans into consideration as you have not stated this.

GettingItRight

A big thank you for your response. The application is going to run past my next trip abroad, so I may hold fire on it for now. However it looks like it's a very competitive credit card for using abroad, so I'm going to strongly consider this card towards the end of March.

I now only have 3 credit cards. The joint Airmiles Duo cards (AMEX & Mastercard) and the Visa card with Nationwide.

ironlady2022

Sounds like a good idea as you have back ups. Apply well before your holiday just in case you incur any delays. Also have you considered a cashback credit card rather than the duo ones? Or are you not a huge spender or gotten lots of points on it?

GettingItRight

Having just closed the old RBS cashback card I realised that generally I am lazy. I will keep the airmiles card because I have a current account with TSB and can pay it off online easily. I did almost ditch it a few months back. The old cashback card I had until yesterday, I used on almost every spend and paid it off online. Now though the Halifax has changed it's website and I need one of their current accounts. I perish the thought of standing in a queue whilst on lunch break waiting to pay a bill

A cashback card would be ideal, but the decent cards for this type of reward are out of my league right now. I would not spend enough to warrant a card as I'm reigning in my spending. My circumstances have changed and I now have a partner living in Lisbon.