I tanked my credit rating...

nubbz

Hi guys unfortunately I done something rather stupid.
I cancelled both my credit cards my barclaycard and my argos card as I no longer needed them.
I also assumed it would improve my credit rating.



Unfortunately it doesn't work that way lol.
Tried to apply for a new credit card and I can only get cards with vanquis or marbles.... So I checked my credit rating and it's dropped by like 120 points.

I canceled my barclaycard like 2 months ago and my argos one about 3 months ago.

How long will this ruin my credit rating?
Atm the only active accounts I have are Virginia media Internet and TV, a current account and a personal loan.
I don't really need a credit card atm but just !!!!ed that it's ruined my rating.

[Deleted User]

Your credit rating has no tanking ability, in either direction, as it's not anything that is seen, used or cared about apart from you.

However, cancelling cards can indicate to lenders that you are no longer trusted by other lenders.

Get a couple of new cards and make sure you use them responsibly to start building new history.

Note that the fictional score will drop further when you get new cards - but again, it's not an issue.

Remember to check your three credit files to ensure everything is accurate. You also need to consider whether affordability is an issue.

DCFC79

Your score will recover.

nubbz

If I just a few months will my rating increase again or should I just use the basic credit builder ones now?

[Deleted User]

You need to build good history for lenders to rate you well.

Which lenders do you want to give you a high rating, as their criteria differ? You'll want to lose the loan for the higher end lenders.

Lower down the chain, it will be less important.

What are your objectives?

nubbz

Not too sure.
I think my goal is to have the ability to get a credit card when I might need one in the future.

I mean tesco refused me for their credit builder card yet a few months ago they were offering me their decent cards..

I guess my options is should I use a card like vanquis to build my rating back up or would it be better to wait a few months too see if my rating goes back up.

Its just annoying because all I did was close cards I wasn't even using.

[Deleted User]

You need to stop focusing on your rating. There are ways to get it to 999 but you don't want to do any of those options.

What you need to do is to demonstrate good credit behaviour to lenders.

Get a card and use it - clearing in full each month.

nick74

Why not just wait a few months, then when you actually need a card apply to Barclaycard again? Assuming that you managed your Barclaycard account with no issues then as you are a previous customer they are probably more likely to overlook a lack of credit history on your file than a lender with which you've had no previous relationship.

System

If you do a search on this forum you'll find plenty of examples of people with perfect 999 scores unable to even get a mobile phone contract. The score means nothing, the contents of the file are what count. On Clearscore, Experian and MSE Credit Club focus on what it says are the positives and the negatives and address the negatives - don't worry about the number.

dealer_wins

Start building up a nice savings pot, and laugh in the face of people who rely on credit!! And save £1000s in interest over your life too!!

sargeantsalt

I'm no expert so I don't get why closing accounts is getting you declined. It used to be only missed payments that caused problems. Your closed account history stays on your credit files for 6 years even after you close them. That information should be almost as good for risk assessment as if you still had the cards open.

What's really going on here? Did you miss any payments? If you have a good history and open accounts but then screw up, the accounts will probably not be closed unless you are really bad. But, if you close them, you won't be able to re-open.

If there are no negative marks then I can only assume it is an industry wide policy to punish customers who close accounts by restricting new accounts from being opened?

Is that how it is now? Your six years of loyalty counts for nothing if you stop using debt?

If you don't actually need credit right now, take the advice of Dealer Wins. You'll be better off in the long run.