Old Credit Cards: Should I cancel them Discussion Area

WEDAFT

The figures are the credit limits on the cards not what is owing!!! The cards are all fully paid up, in other words the balance on them is zero. What I was asking is would canceling some of them help improve our credit rating?

Paully232000

From my experience not cancelling CC that you have BT away from has never had an effect on me getting more credit cards.
At one point I had well over 50% (i think it was over 100% at one point) of my yearly salary in available credit and never stopped me from getting more. Even though all but two always had a £0 balance.

I should have cancelled them earlier, and have done now down to three CCs. So in some instances that which people say about having too much available credit hampering ability to get more doesn't always hold true.

WEDAFT

Thank you Paully232000

Herbalus

WEDAFT wrote: »

The figures are the credit limits on the cards not what is owing!!! The cards are all fully paid up, in other words the balance on them is zero. What I was asking is would canceling some of them help improve our credit rating?

Well there is a misunderstanding.

If you have a limit of £2,000 on a credit card, then please say limit. For clarity. Saying you have £2,000 on a credit card means to me that you have spent £2,000 on a credit card.

WEDAFT

Point taken,:T

nizmo_2

I have just 1 credit card with a £500 limit on it, its cleared and has been for about a year now.

I am wondering If I should cancel it or not ? I did have a couple of late payments on it when times were hard and I think this has obviously had an effect on my credit rating.

I am looking at a 2k loan from the cheapest source and I am concerned about being accepted. So I am thinking if its best I close this account with NatWest.

The only other debt I have is student overdrafts at about £2500 with Natwest and Lloyds tsb.

I went into Lloyds and their computers say no to any form of loan.

Ideally I want a 0% on purchases card for say 15 months, and with at least 1500 limit.

So ultimately, will closing down my credit card help me or not ?

guesswho2000

nizmo wrote: »

I have just 1 credit card with a £500 limit on it, its cleared and has been for about a year now.

I am wondering If I should cancel it or not ? I did have a couple of late payments on it when times were hard and I think this has obviously had an effect on my credit rating.

I am looking at a 2k loan from the cheapest source and I am concerned about being accepted. So I am thinking if its best I close this account with NatWest.

The only other debt I have is student overdrafts at about £2500 with Natwest and Lloyds tsb.

I went into Lloyds and their computers say no to any form of loan.

Ideally I want a 0% on purchases card for say 15 months, and with at least 1500 limit.

So ultimately, will closing down my credit card help me or not ?

Closing your only card, with such a low limit, will not only not help you, it's likely to hinder you. If you can't get another, you'll be left with no credit cards.

I'd keep it at least until the missed payments (and any other adverse) are gone from your file, then apply for a new card before closing this one.

LTSB tend to stick a 99CPD marker on your account if they get worried (which happens to even people with spotless files for no reason) meaning they won't lend you anything; NatWest are a bit more lenient in my experience - try going into the branch (or even calling them) - they should be able to tell you your likelihood of acceptance for a loan.

madein83

I have a Capital One Secured card, backed by a £200 deposit. Opened 8 months ago, good repayment history.

Now I've been accepted for another Capital One card with a bigger limit (a 'proper' card, unsecured).

I was thinking of closing down the secured card, and using the £200 deposit to draw down against other debts.

Is it worth doing, or keeping the account open?

On the one hand, it's a credit account with good repayment history since opening.

On the other, the limit is low (£200), the account showing as 'settled' may look good, and I can focus building the credit limit on the other cards.

Note: I have 9 credit accounts already, 3 of which are existing credit cards that were previously on repayment plans, which I'm now paying off at normal interest rates... so it's not like this is my own credit card account.

Thanks in advance!

Herbalus

madein83 wrote: »

I was thinking of closing down the secured card, and using the £200 deposit to draw down against other debts.

Is it worth doing, or keeping the account open?

Personally I would close it and use the money to pay off other debts. £200 at 17.9% costs you nearly £3 per month. The benefits of it being an older account don't seem worth £3/month to me.

planteria

entirely agree. as soon as CapOne have given you a card that doesn't need a deposit, close the one that does. and push as much spending as you can onto the new card, ensuring that you always clear in full.