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Closing a credit card account that has a balance?

teddybearzero
teddybearzero Posts: 29 Forumite
in Credit cards
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,

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
    Name Dropper First Post First Anniversary
    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
    teddybearzero Posts: 29 Forumite
    Oh OK, that's OK. The interest rate increase is ridiculous, and I never use it.

    Thanks for the help.
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
    Name Dropper First Post First Anniversary
    Have you tried to balance transfer it to a new card?
  • sheslookinhot
    sheslookinhot Posts: 2,070 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    I would be very surprised if you can close an account with a balance outstanding. Why would the card provider agree to this.
    Mortgage free
    Vocational freedom has arrived
  • CLAPTON
    CLAPTON Posts: 41,865 Forumite
    Combo Breaker First Post
    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
This discussion has been closed.
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