closing a 123 credit card

matofender

Hi

I'm planning to take out an Amex card as the new caps on the 123 credit card now mean I will earn little to no cashback.

What is the correct procedure for closing my 123 card? I have a linked 123 current account which I will be keeping. Obviously I will stop using the credit card now, should I pay the outstanding balance immediately in a lump sump to bring to £0 before I request cancellation? Or is it better to cancel first and let them automatically clear it from my current account?

Will cancelling mid-month affect my cashback earned this month? Also if I request cancellation before the 1st Feb do I get any advantage (e.g. do I avoid a fee due to them changing the caps)?

Thanks

Alpha_5

As soon as you have your new card, phone santander and state you wish to close your account. They will then freeze it, meaning you won't incur any further monthly fees (or be able to use it for new purchases!). The account will then be closed automatically once the balance is paid off.

realaledrinker

Above advice sounds iffy if you are not clearing the balance in full each month - the interest will not stop just because you request to close the account.

I was clearing my 123 card in full each month. I just stopped using it, waited until the account was cleared to Nil by the next DD then immediately phoned up and cancelled it.

Ben8282

You cannot close a credit card account with an outstanding balance.
Get the new card.
Cease using the old card.
When you have received a 0 balance statement after trailing interest has been paid, close the account any time at your convenience.

gt94sss2

Ben8282 wrote: »

You cannot close a credit card account with an outstanding balance.

Yes, you can - Alpha 5 is correct.

Once you do so, you will no longer be able to use the card for new spending but will continue to receive statements as normal until you pay off the balance.

If you close the card before they implement a change in T&C or in your interest rate, you retain the old T&C/APR until your balance is paid off.

In the case of Santander best to close your account by 31 Jan before the new T&C come into force.

Ben8282

gt94sss2 wrote: »

Yes, you can - Alpha 5 is correct.

Once you do so, you will no longer be able to use the card for new spending but will continue to receive statements as normal until you pay off the balance.

If you close the card before they implement a change in T&C or in your interest rate, you retain the old T&C/APR until your balance is paid off.

In the case of Santander best to close your account by 31 Jan before the new T&C come into force.

Yes but that is not the case here. In this situation doing so would serve absolutely no purpose whatsoever except possibly to damage his credit file as clearly the new status of the account would be reflected.

wiseonesomeofthetime

I have just closed my Santander 123 Credit Card after it was no longer worthwhile.

I did secure message Santander for advice on how to do it and below are the two emails received.

Hope it helps.

"If you no longer wish to hold the 123 credit card, you will need to reduce your balance to nil and request closure. We need to make you aware that you will be unable to apply for the same account type as our 123 Credit Card is no longer on the market.
Alternatively we can place a pending closure block on the account until the balance is paid off and once the statement is at zero, the account will automatically close within 30 days.
Your next monthly fee of GBP3.00 is due to be applied on the (xxth) February 2017.
Please respond advising if you wish to proceed with closure and place the block on the card.
If the pending closure block is applied, the following will apply.
This will stop any further monthly fees being applied.

Any cashback due will be credited to the account.
Your monthly credit card repayments will still be payable on their due dates.

Any charges, interest, refunds and pending transactions will continue to be applied to the account.

If youre registered for Retailer Offers and your nominated account is your credit card, youll need to log on and change the nominated account so that you can continue to receive Retailer Offers cashback.

You can make a payment to your credit card account in a number of different ways.

You can pay from your current account, either online or over the phone with your bank, by setting up a Bill Payment using the following information:
Sort code: 09-00-99
Account number: 01000007
Reference: your full 16-digit Credit Card number.

Please allow up to 1 working day for payments made through Online Banking to reach the account.

You can send a cheque, payable to the primary cardholder followed by your card number, to:
Clearing Centre
Santander Cards Limited
Bridle Road
Bootle
L30 4GB

Please also write your credit card account number on the back of the cheque and allow 7 working days for your payment to clear once weve received it.

You can also pay at any Santander branch by cash or cheque using the payment slip attached to the bottom of your statement.

For cheque payments, please allow up to 7 working days for the payment to clear and up to 1 working day if paying with cash.
If I can be of any further assistance, please do not hesitate to contact me or alternatively you can speak to one of my colleagues by calling 0800 9 123 123. Lines are open Monday to Saturday 7am to 9pm & Sunday 8am to 9pm."

---

"Thank you for your email.
I can confirm that I have applied a pending closure block to the card. Any cashback will be credited on the normal settlement dates providing the card is still open on these dates.
I hope this information is useful and if you have any other queries, please do not hesitate to contact me via Secure Messaging or my colleagues on 0800 9123123. They are available between 7am to 9pm Monday to Saturday and 8am to 9pm Sunday."


Note the providing the card is still open on these dates !!!

Alpha_5

Apologies, I should have been clearer - the advice I gave assumes you pay off your statement balance in full each month.

I called to close my Santander 123 card on Saturday (with a balance outstanding) and this is what is happening for me.