closed credit card account affecting rating?

hayles01

I have a credit card account that was closed a couple of years ago by the company (Monument). I have been paying it off and have very nearly done so - another 4 months and I will have a nil balance. My question is as the account is closed but I am still paying it off will this have a negative effect on my credit rating? I have never defaulted and am currently paying 5 times the minimum payment - I only owe £380 now. They chose to close it because at the time I could only afford the minimum payments and it was taking forever to reduce the balance. I have checked my credit reports and it does not show as defaulted, only that I am making regular payments.

The_Boss

You don't have a credit rating.

Why was the account closed?
Anything more specific that your credit files show?

hayles01

I can't remember the exact wording on the letter they sent me but it was basically because I was at my limit and only making the minimum payment, which was obviously taking a very long time to pay off. The credit files do not show anything other than the balance and that it has been reducing over the years. As I say I only have £380 left to pay. It's just that I want to open a new bank account and am reluctant to do so if this will affect me (especially as it's for the sake of 4 months).

The_Boss

So showing no missed or late payments or anything?

If not then it should all be ok, but you might want to apply for another credit card anyway so you can continue building your credit profile when this closes. What was the credit limit on the closed account and how much left do you have to pay off?