What to do when interest free credit card is finished

KerryTT

I took your advice to use interest free credit cards for purchases as we are fortunate enough to pay them off in instalments over the borrowing period. We've used the first Tesco for a big purchase and after 12 months it's paid off in full. The second M&S we used for our wedding, now we're at the end of 15 months and are paid off. We now have our 3rd interest free CC for another big purchase which we are paying off over the next 18months.

What do you do with the old cards? We don't want to use them esp with high interest rates now. Do we contact Tesco and M&S and tell them to close the account or just cut up the cards and leave them. Obviously we don't want to affect our credit rating with looking like we're borrowing a lot. Thanks

Aquamania

KerryTT wrote: »

I took your advice to use interest free credit cards for purchases as we are fortunate enough to pay them off in instalments over the borrowing period. We've used the first Tesco for a big purchase and after 12 months it's paid off in full. The second M&S we used for our wedding, now we're at the end of 15 months and are paid off. We now have our 3rd interest free CC for another big purchase which we are paying off over the next 18months.

What do you do with the old cards? We don't want to use them esp with high interest rates now. Do we contact Tesco and M&S and tell them to close the account or just cut up the cards and leave them. Obviously we don't want to affect our credit rating with looking like we're borrowing a lot. Thanks

If you really don't want them anymore (and cutting up the card is a good indication you no longer wish to have them) then you might as well cancel them if for no other reason than security.

KerryTT

Sorry I meant do we need to contact the company to cancel them and close the account or is simply cutting them up enough?

Aquamania

KerryTT wrote: »

Sorry I meant do we need to contact the company to cancel them and close the account or is simply cutting them up enough?

Yes, you need to contact the provider if you wish to close an account.

How do you think the provider will even know you have cut up the card (if you don't tell them) let alone that you would like the account closed, unless you tell them :huh:

KerryTT

I simply thought lack of use would eventually close the account. My mistake

thebritishbloke

KerryTT wrote: »

I simply thought lack of use would eventually close the account. My mistake

Sometimes accounts can stay dormant for years before they even start to think about closing it. Costs them less money to keep your account open, than it would cost them to sign you up again.

CLAPTON

KerryTT wrote: »

I took your advice to use interest free credit cards for purchases as we are fortunate enough to pay them off in instalments over the borrowing period. We've used the first Tesco for a big purchase and after 12 months it's paid off in full. The second M&S we used for our wedding, now we're at the end of 15 months and are paid off. We now have our 3rd interest free CC for another big purchase which we are paying off over the next 18months.

What do you do with the old cards? We don't want to use them esp with high interest rates now. Do we contact Tesco and M&S and tell them to close the account or just cut up the cards and leave them. Obviously we don't want to affect our credit rating with looking like we're borrowing a lot. Thanks

I believe both M&S and Tesco CC offer rewards for use.

why don't you use them for your normal shopping and pay in full each month so no interest is charged, but you benefit from the rewards

do you never need a CC? e.g. hotel booking, car hire, online purchase, emergency use while away from home etc?

KerryTT

I didn't mean to sound simple I just wasn't sure if having lots of unclosed CC accounts would affect future borrowing and whether it was advisable to use the card then close (i.e. cut up and leave account untouched or cut and and contact the company). Thank you for your advice

KerryTT

Yes I have a Barclays CC for day to day use which is paid off in full each month. I just used the interest free ones for big purchases. But yes I understand that it would make sense to used them for monthly purchases and paying off in full and getting the rewards. Just don't like balancing too many CC in one go but good advice thank you.

CLAPTON

KerryTT wrote: »

I didn't mean to sound simple I just wasn't sure if having lots of unclosed CC accounts would affect future borrowing and whether it was advisable to use the card then close (i.e. cut up and leave account untouched or cut and and contact the company). Thank you for your advice

you will find many people here have 5 or more CC (mainly for the various benefits) and have no problem getting other CCs, mortgages or loans.

why not get 1 or 2% cashback on your spending at no inconvenience to yourself?

System

Look at the benefits of each and limits.

Most Barclaycards have no benefits.

I'd be inclined to keep one for day to day use and a spare plus your balance transfer card as that isn't used for anything else.

KerryTT wrote: »

Yes I have a Barclays CC for day to day use which is paid off in full each month. I just used the interest free ones for big purchases. But yes I understand that it would make sense to used them for monthly purchases and paying off in full and getting the rewards. Just don't like balancing too many CC in one go but good advice thank you.