Should i close my Next Account???

TimeforTea_4

I have an account with Next that i have cleared and is now just sitting with a balance of Nil and a credit limit of £2000.00.

I will not be using this account again, but should i leave it open? Will it have a positive effect as i have nil ballance but a big credit limit?

Thanks:p

Earthmother_2

I wondered the same, I still have my account open with a nil balance. I did make an order a couple of months back but paid it straight off. I thought it might be a positive on my credit rating?

foxgloves

I'm not an expert on credit ratings by any means, but I thought what they are monitoring is the ability to make regular payments to pay off credit, so if the store credit account is open but not used, I don't know if this would happen. Would you be tempted with the account still open? I paid off my account several times, never actually closing it & always ran it up again, back in the bad old days before I finally busted my debts & started budgeting. They can be pretty high interest. Am sure there'll be someone who knows mroe about credit ratings than me!

Debtbusterintraining

I'd be interested in finding this out too.

Earthmother_2

Can anyone else shed any light please?

StressedSteph

I am not the most knowledgeable, but I would imagine it is worth keeping if you are going to make a regular monthly purchase and then pay it off in full straight away.

I think that is showing that you can handle large credit, not be maxed out and frequently pay off in full.

BUT.....Can you handle this without getting into debt again???. I know that once I pay off my NEXT account , I HAVE to close it, otherwise it won't be long before I max it out again.

also I think if it is going to sit un-used, you are better off cancelling it. It won't help your credit rating if it is just sat there.

I might be wrong, but thats how I understand it xxx

curs82

If you intend making regular purchases but don't want to get back into debt, could you not ring them and ask them to reduce the limit to £500?

Treat it like a credit card imo

Janie4Now

Close it! Now! I just read your thread and it made me go look at the Next website! Fortunately I resisted the temptation to buy yet something else that I don't need......but I may not manage it next time.

The Next account is the invention of the devil.

exarmydreamer

Any credit you have that is used or unused has an effect on your ability to borrow more. For example, Mrs A has an authorised overdraft of £1500, (currently not used) and 2 store cards with a balance owing of £500.00. She owes £500.00.

She wants to buy an expensive large appliance, house or car, her lending WILL be effect by her lending limit. So her overdraft and store card balances will be taken into account, even if it is a zero balance, (as she still has the account open and the ability to spend the money.

I closed my Next, M&S accounts and reduced my authorised overdraft down to free up my ability to increase my credit score. I hope this has helped, as it is definately better to close accounts and increase your over all total personal credit availability.


Next do offer an account where you purchase goods over the phone for home delivery with no credit facility.:)

Emmala

I agree with exarmydreamer - if you don't need it, close it. My DH is a high earner and when we went to our bank a while back to ask about a remortgage (not increasing the amount, just a new one as our fixed term was ending) the computer said 'no'. We did the experian checks etc and all was well, BUT I had a chat to one of their advisors who suggested looking at the amount of available credit we had......when we added it up it was over £40K!!!! So, although we didn't have that amount of debt, we could easy rack it up which made us a risk as far as the bank was concerned. So we rang round, cancelled some old CCs which had say £5K limits, and drastically reduced the amount of potential credit/debt we could have.

TimeforTea_4

Thank you all for the advice, I am going to close the account tomorrow. Xx