New CC! Call up and cancel or just not return the agreement

mini_lidi

Got a new CC that I now no longer need (applied for 2)
The search will be on my file now but the intrest rate is 28% and I needed it for a balance transfer but now don't.
They have sent me the credit agreement to sign and return to complete the application.
So do I ring up and cancel it completely?
Or just not return the agreement?
Or just keep it and cut it up? But thought having 2 new credit cards would hurt my credit rating.

Any advice would be amazing

[Deleted User]

How many cards do you have? What are the total limits? What's your income? What benefits do the various cards have? What cards do you use on a daily basis?

The answers to those may reveal the answer. But certainly the third option is the worst of all worlds.

jamesd

zx81 has asked some of the key questions. In general the biggest initial potential harm is done by the application, not the account opening itself.

Do you have any routine spending you can do on a card that will let you make productive use of the balance transfer at a profit? For example, you could buy six months of food by supermarket delivery and use a balance transfer to pay it off while you save the money you would otherwise have spent on food. Then you use the savings to clear the balance transfer just before the deal ends.

Things like buying food or other things that you use routinely while special offers are running can save quite a lot of money. You might also compare food delivery places and buy lots of what you'd buy anyway from the one which happens to offer the best deal at the time.

mini_lidi

Thanks for the reply.
I currently have 1 Halifax CC total balance £5000. A new virgin CC £0 (but balance transfer of £5000 from Halifax is taking place at 0%) and an old Barclay card with £0. Then this new Sains card which I don't want/need.
Limits are:
Halifax - £5000/£5500 over 7 years old CC
Barclays £0/£9900 over 5 years old the CC
Virgin £0:£6500 new!

Monthly income after tax is £1800. Don't use CC unless for holidays, insurance etc. This has one debt built up over the last year and now aim to clear it this year. Can afford £550 a month and now it being 0% intrest will help.

This leave this Sainsburys card...

[Deleted User]

You might want to cancel one, given the limits and your income. But consider which ones will give you the most benefits going forward, and cancel the runt of the litter.

mini_lidi

Ok great so I would most likely cancel the Barclays as I haven't used it in years. But it has the biggest limit on it? Will that effect anything?

Also would u also cancel the sains CC? Or would that make it look like I was refused?

[Deleted User]

I'd keep three. But make sure you use them occasionally and at least one regularly, in order to keep them open and keep an active credit history.

mini_lidi

Ok great! So will get rid of the Sainsburys one then.
Will ring them up and cancel the application. As I haven't signed the agreement.
That would affect my credit score would it?

Ps thank you for your help ��

redpete

mini_lidi wrote: »

Ok great! So will get rid of the Sainsburys one then.
Will ring them up and cancel the application. As I haven't signed the agreement.
That would affect my credit score would it?

Ps thank you for your help ��

Any affect on your credit history would be relatively small - are you close enough to any lender's criteria threshold that you really need to worry about it?

Back to your original question - if you've decided to cancel a card then the most effective way is to ring up the provider and follow it up with a letter.

System

2 credit cards are sufficient for most people.

You could ask Halifax to convert your exisiting account to a Clarity version for use on your holidays. I'd probably ditch the Barclaycard unless they offer you something to keep it.

As the Sainsburys application requires a signature then it's not actually opened until that is returned. I'd personally just not return it and let the application expire.