will cancelling my credit card hurt me

Beefpipe

Hello martin,

I have just transferred my balance from my Barclay card and wondered if i should close it. I have had the card for 10 years, never missed a payment or gone over the limit. Will closing it be better or worse for my credit rating?

Thanks

Brett

Voyager2002

If it has a high limit, then closing it will help you (lenders look at the amount of credit already available to you when making lending decisions, and so a card with a high limit might make them say 'no' when otherwise they would say 'yes'). However, lenders will look for a continuing record of using credit responsibly (making payments when they are due), so unless you have another credit card that you use and pay off regularly, it would be a good idea to continue to use this one now and then.

chattychappy

Nobody really knows and each lender will have it's own criteria.

Personally I think the negative effect of dormant credit cards (ie unused available credit) on your rating is not as great as people suppose. On the hand, by keeping a CC open you have a backup and might get further BT offers.

I would only close it if you have at least a couple of other cards that are also dormant/underused.

Beefpipe

Ive transfered it to a tesco £0 to transfer and 0% for 12 months along with my girlfriends and another Credit card i had, My total amount of debt, anywhere is £3500 now. I finished paying my loan of this month and im trying to get shut of the cards now over this year. im currently looking to get a mortgage and i understand the whole, im making regular payment thing. I think ill close it its limit it £4500. thanks people

chanz4

As chattychappy says, KNOW ONE knows except for the lenders and you never will find out.

I close myn down that I don't use, never had an issue getting others

Venusflytrap

chattychappy wrote: »

On the hand, by keeping a CC open you have a backup and might get further BT offers.

True. My Barclaycard offers me repeat balance transfer deals and this is the only reason I will be keeping it open for now.