Best way to close a credit card (regards affecting credit rating)

BoBoDobie

I opened a Tesco credit card purely to claim a meerkat cuddly toy for my daughter. Toy is now here and I ideally want to close the card. I got it a few weeks ago, I've not purchased anything on it. Is there a 'good way' of closing it down in relation to it affecting my credit score? Would it be best to leave it open and unused? Or purchase something then close it down? Or won't any of that make any difference? Thanks.

DebtFree14_2

That is a terrible reason to open a credit card. Have you heard of EBAY? Regardless your credit rating has already taken a hit. You will have a search against your name and a new credit account. Even if you close it you may find it will take a few months to reflect on your credit report. Depending on the credit limit you may find it affects future lending

jonesMUFCforever

OP - why not just keep it for an emergency (although I would use it once in a while to make sure it works)?


If you shop regularly with Tesco why not use it to get more Tesco points/vouchers?

BoBoDobie

I did look on ebay but they go for quite a lot so free was worth the trade off of opening a credit card. I don't think the credit report will affect my life particularly so I'm not losing sleep over it, I just want to know the best way of doing it. Sounds like from what you say about even if I close it now, it may take a few months to reflect on my credit report that I'd be better closing it down sooner rather than later? I actually in the back of my mind thought that having a credit card (ie having some credit) may help in terms of future lending and that actually if you've never had one/had credit you don't appear on their lists then that can go against you? Or have I got that wrong?

BoBoDobie

Sorry jonesMufc missed your reply thank you. I have one I keep for emergency so I don't need another one plus I'm an Aldi convert these days so I don't tend to use Tesco.

grumbler

BoBoDobie wrote: »

... Is there a 'good way' of closing it down in relation to it affecting my credit score? Would it be best to leave it open and unused? Or purchase something then close it down? Or won't any of that make any difference?

Generally this makes no difference, but, depending on your other credit facilities and your income, it can be better to keep it than to close it.

countingstars

Why not use it for one purchase every month? Keep in open for about 6 or 12 months and then close it? That way, you'll have a series of green ticks on your credit file.

There was a time when I opened a credit card then got a better deal a month later. Rather than closing my first, I just used it for a small purchase each month for about a year then ended up closing it. It helped strengthen my credit report by adding in more history.

A search against your name has been applied when you were accepted for your credit card. May as well get a little use out of that.

BoBoDobie

Fab thanks countingstars that's just the info I was looking for! If that helps to strengthen my credit file then I'll do that. Thanks Grumbler!