Closing a credit card account that has a balance?

teddybearzero · 6 March 2011 at 1:30PM

Hi all,

I have a Barclaycard that has a remaining balance of £x amount. I never use this card and the interest rate is going to increase at the end of the month.

If I close the account the interest rate will remain frozen at the current rate. Does closing the account have a negative effect on my credit rating in anyway?

Cheers,

YorkshireBoy · 6 March 2011 at 1:32PM

teddybearzero wrote: »

Does closing the account have a negative effect on my credit rating in anyway?

No. However, the available credit, although not available to you to spend, will remain attached to your CRA file.

teddybearzero · 6 March 2011 at 1:49PM

Oh OK, that's OK. The interest rate increase is ridiculous, and I never use it.

Thanks for the help.

jonesMUFCforever · 6 March 2011 at 4:41PM

Have you tried to balance transfer it to a new card?

sheslookinhot · 6 March 2011 at 5:02PM

I would be very surprised if you can close an account with a balance outstanding. Why would the card provider agree to this.

CLAPTON · 6 March 2011 at 5:20PM

sheslookinhot wrote: »

I would be very surprised if you can close an account with a balance outstanding. Why would the card provider agree to this.

it will be 'closed' in the sense that it can't be used for new purchases

Closing a credit card account that has a balance?

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