Credit card application

Frank73

I've recently applied for a Lloyds credit card to transfer a balance, however the credit limit I've been given is not enough to complete the transfer. I'm still on the 14 day cooling off period but my question is, should I cancel this card in the 14 day period will the account remain on my credit file even if the card is never used and cancelled within the given 14 day period?
Many thanks for your response..

grumbler

Frank73 wrote: »

I've recently applied for a Lloyds credit card to transfer a balance, however the credit limit I've been given is not enough to complete the transfer.

Transfer as much as you can then.

I'm still on the 14 day cooling off period but my question is, should I cancel this card in the 14 day period will the account remain on my credit file even if the card is never used and cancelled within the given 14 day period?

Account will not remain, but the credit search generated by the application will remain for 6(?) months.

Frank73

Thanks for your reply, another thing, if I kept the account open and didn't use it, does that look worse than a credit search on my file?

maas

It will show to future lenders that you have that extra available credit, which may in turn reduce the amount they offer.

grumbler

The search remains regardless.
An unused account most likely is of no good as it increases (available credid)/(income) ratio, but sometimes, if this ratio is well below 50%, it can be useful as it decreases available/used ratio.

Frank73

Thanks, I think I'm just going to return it then as its not what I wanted and is only added temptation to go shopping! It's typical as I really struggled to get credit in the past and when I finally do its not what I need!!

grumbler

Frank73 wrote: »

Thanks, I think I'm just going to return it then as its not what I wanted

What did you want then?

and is only added temptation to go shopping!

Transfer a part of the balance, then get the limit for the old card reduced. Use the money you save on the interest to repay the debt faster.
How is it different from one new card with a bigger limit and balance?

It's typical as I really struggled to get credit in the past and when I finally do its not what I need!!

You seem to not know what you want.

JKSandy

grumbler wrote: »

Transfer as much as you can then.
Account will not remain, but the credit search generated by the application will remain for 6 months.

I thought credit searches stayed for 12 months? Or has that recently changed?

grumbler

Don't take my word for this. I might be wrong.
However, after 6 months, if not earlier, most lenders definitely start ignoring it.

Pincher

Just transfer what you can, and start paying the minimum on the Lloyds. Borrowing and paying back (on time) is called a credit history: Brownie points.