Old Credit Cards: Should I cancel them Discussion Area

AndyKing1990

Hi, looking for some advice!

I had a Lloyds credit card that they put up to 35% interest for no reason. They said the only way to keep it at the already high 22% was to close the account and continue to pay off the balance. I took this option and paid off the balance in November 2012.

Obviously it's now March 13, and the card is still showing on my online banking and is not showing as settled on my experian report. I spoke to Lloyds and they said that it can take 6 to 12 months for the account to show as settled on my credit report, however this is now taking up £1200 of my available credit. Not long out of university, though in well paid employment, I don't have the luxury of savings - so I need a credit card for emergencies such as our washing machine needing replacing and car repairs - And the Lloyds card showing on my report isn't helping my application for new credit.

Are Lloyds not breaking the law by refusing to adjust my account to 'settled'?

I really don't want to turn to these ridiculous high interest short term loans!

huudi

I just read about barclays offering cash to keep customers and also charging for cards in credit. Barclays cancelled my card because of low use and promised to return the 67p credit from the account. That was at least 2 years ago and they did nothing but freeze my card, I still receive statements. As this was the only card I had Then I am a little peeved, now what about that £50 to keep me?

Zigzags

Telephoned barclaycard yesterday to cancel my card was offering 0% on transfers and purchases explained didn't want it. Called back today gave me £50 to keep the card.
Great news!

mintzee

Hi,

I was just wondering, if I asked to have my credit limit 'decreased', do you think it'll help my credit score as there won't be as much 'available' credit to me or would it not make a difference?

geekonthepc

mintzee wrote: »

Hi,

I was just wondering, if I asked to have my credit limit 'decreased', do you think it'll help my credit score as there won't be as much 'available' credit to me or would it not make a difference?

Depends on your circumstances. If you have multiple cards then yes, probably, as an excessive amount of avaialble credit will be seen as a negative.

However, if your credit history isn't very lengthy and it's the only card you have, I'd advise you to keep it. You'll only have a problem if you want to apply for a new card and you're available credit is high compared to your income.

hampsterpoo

I have an old low % , (by todays standards) CC with Sainsburys,
I defaulted with the repayments and went ont a managed repayment plan.
I reclaimed my charges from them, along with others.
All the money claimed when to clear the debt with them. I wasnt using the card for at least 1-1/2 years just clearing it.
When the time came to send out a new card , they didnt send one out.
As I was just paying off the debt to them and had been told not to use it. That was at least 2 years ago now.

I am however in credit by 1p as I over paid the last interest charged , so I get a statment each month .

Should I ring and ask for a card ?

I know I have a rebuilt a good credit rating and have recently just got a Barclay's CC, and done a balance transfer to it @ 0% for 18months so my daughter could clear her card.

So whats the chances of being able to keep the Sainsburys card & the low rate % ???

WEDAFT

Hi, me and my wife have 5 credit cards between us they are 2 Barclaycards one with £800.00 on it and one with £2000.00 on it we also have a Santander card with £7000.00 on it and a M & S card with £2000.00 on it and a Tesco card with £2000.00 on it. I am thinking about canceling the Santander card the M & S and the Barclaycard with £800.00 on it. This would leave us with the Tesco card and the Barclaycard each with £2000.00 on. Does this sound like a good option?

Herbalus

You've got to be kidding right?

Cancel a card? As in not pay? That's not really an option.

"I have a mortgage, and I don't want to pay it, so I'm going to write to the bank and cancel it." In Roman times, defaulting on a debt like that would have you legally enslaved to you creditor for a number of years before hard labour had repaid them.

Trapezius

Herbalus wrote: »

You've got to be kidding right?

Cancel a card? As in not pay? That's not really an option.

"I have a mortgage, and I don't want to pay it, so I'm going to write to the bank and cancel it." In Roman times, defaulting on a debt like that would have you legally enslaved to you creditor for a number of years before hard labour had repaid them.

Their username is "we daft" (kind of), so I'd take it with a pinch of salt.

Herbalus

Joined three years ago though. I didn't think trolls planned that much in advance.