Is it better to cancel my credit card?

Sata

Hi All

So I posted a few weeks back about improving my credit rating, after advice from people I had decided I was going to keep my cc (after transfering the balance) and spend a small amount on it each month and pay it off in full. But the more I think about it I don't trust myself to do this! I have reduced my limit from £1k to £200, am I better to cancel it or keep it and not use it?? (I'd cut up the card)

Thanks in advance for any advice!:)

MusicalLawyer

There is no point in keeping it and cutting up the card. If you're keeping it for emergencies, then you'd have to wait days for them to send you a new card, by which time the 'emergency' could have gotten worse.

If you can't spend a little each month, and pay it off (set up a DD to pay it off in full each month, that way you don't have to do anything), like if you think you're just going to overspend on it and so on, then just get rid of it

Sata

Thanks that's what I was thinking, to be honest I'm a student and during term time (when I receive my student loan) I could manage it but during the summer I am -£550 a month and have other stuff to pay, it's more the temptation over the summer to spend on it if I have it this is really the problem! Wasn't sure if it would look good or bad if it was still on my file as satisfactory but no blance on it!

nomoneytoday

Why not put it in the freezer, surrounded by ice?

It takes a couple of hours to thaw, allowing you time to decide if the spending is a necessity or frivolous

Sata

I know someone who did that, she said it didn't work tho as she just used the hair dryer on it!hahaha

I did think about giving it to my dad who wouldn't give me it without 20 questions about why I wanted it! Then just say NO!

MusicalLawyer

Ah didn't know you were a student. Hmmmm is there anywhere you can put it, so that during the summer you don't use it?

Freezer is a good idea though. Also giving it to your Dad for the summer would also be a very good idea too.

camuk81

Sata, how long has it been cleared.

Someone told me once from experian though I believe it is a different story that once you clear a balance leave it 6 months and then close if you don't plan to spend on it.

I have 2 accounts that are going through this process. One is Vanquis cut the card up and put it to £100 (less trust then you have in yourself.) The other is Next, this I buy the odd thing on.

Meanwhile during all this I have 3 credit cards left which one gets a big chunk of cash so I can pay a load off and do some shopping to show it keeps moving. The other I spend small amounts then overpay on them. However the limits are coming down with this.

At the beginning I started with £3,700 available, Slowly I'm down to £3025 with 81% left.