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Started new credit card, now I don't want it - what should I do?
jeffroswald
Posts: 8 Forumite
in Credit cards
Hi, started a new Tesco credit card through Quidco - for a balance transfer offer - but then ended up getting some cash and paid off the original balance I was gonna transfer.
I've now got the credit card from Tesco and cancelled the transfer. But I've now got a third credit card that I don't need. Should I cancel it or just keep it? Whats better for my credit rating?
Any advice much appereciated please.
I've now got the credit card from Tesco and cancelled the transfer. But I've now got a third credit card that I don't need. Should I cancel it or just keep it? Whats better for my credit rating?
Any advice much appereciated please.
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Comments
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Leave it open.0
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You don!!!8217;t have a credit rating.
What!!!8217;s the limit on it?0 -
£3,500.
I do have a credit rating, just want to keep it good!!0 -
You don’t have a credit rating. Or a score.
Keep the card and use it as a backup0 -
Keep it open, it's good to have a back up.
If you can use a small amount on each card for maybe groceries, travel costs, coffees each month and then pay off in full. This will demostrate you are responsible with credit and will have history to verify this. A DD to pay in full normally works well so you never forget the due date.
Your credit score/rating doesn't get shared with anyone other than you from each CRA. It will also be a different score with each CRA, out of 999 with one but only 710 with another etc but this is only their opinion of what you are doing. The history you build will allow future lenders to score you according to their criteria, this may only be out of 100 etc. It's your history that you should focus on over than the score but if it's particularly low have a look at your history to see if you can a reason for this opinion
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You don't have to be the best -
Just be better than you were yesterday.0 -
You don’t have a credit rating. Or a score.
As soon as anyone rates his credit he has a credit rating. As soon as anyone puts a score against his credit worthiness he has a credit score.
The issue is that the rating or score that Company A allocates mght bear no relation to the rating or score that Company B sllocates. And if Company B is the one you want to lend you money then the info from Company A might be meaningless (or it might give you useful hints as to the likelihood of you getting a loan).loose does not rhyme with choose but lose does and is the word you meant to write.0 -
As soon as anyone rates his credit he has a credit rating. As soon as anyone puts a score against his credit worthiness he has a credit score.
The issue is that the rating or score that Company A allocates mght bear no relation to the rating or score that Company B sllocates. And if Company B is the one you want to lend you money then the info from Company A might be meaningless (or it might give you useful hints as to the likelihood of you getting a loan).
But not a score or rating that's used in the real world0 -
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But not a score or rating that's used in the real world
Of course it is. You apply for a credit card or a loan and the lender will rate how attractive a risk you are to them, they might even call this a credit rating, and it will determine whether or not they offer you credit and on what conditions.
Or a Credit Rating Agency will come up with a number based on the more limited information they have and it gives you a guide (note, a guide) as to whether a lender will like you or not. What you shouldn't do is make decisions based on a number from a CRA, nor pay anything for the information they give you, nor be disappointed if their guide is inaccurate.loose does not rhyme with choose but lose does and is the word you meant to write.0 -
If you are still within the cooling off period you should be able to close it without any adverse affect to your credit file - it should be as if the card never existed. The hard search made during the application would remain however.
Personally I'd keep it open, make one or two purchases on each card every month (just put your usual spending on them) and pay them off in full - this will help to improve your credit history.
Also as noted by others, please ignore any reference to your credit "score/rating". These numbers generated by the CRAs are basically meaningless as no-one else but you will see them. Every lender will generate their own score based upon the contents of your credit file and the information you provide during your application. As such, what really matters is your credit history - focus on making sure only good things appear in your file, rather than on the number itself
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