Closing Balance Transfer Accounts

andywardinnit

After switching balances with balance transfer is it best to close the old account? Does it affect credit score if open or closed?

Nile

Hi, we move threads if we think they’ll get more help elsewhere (please read the forum rule) so this post/thread has been moved to another board. If you have any questions about this policy please email forumteam@moneysavingexpert.com.

I’ve moved your thread from the ‘I wanna’ board to the ‘Credit File & Ratings’ board.

Regards

Nile

Ben8282

As nobody but you will see your credit score and it plays no part in lenders decisions regarding applications for credit, it doesn't really matter if it is affected or not.
A decision whether to close the old account or not will depend on several factors personal to you

boo_star

Ignoring the credit score issue, there is generally an upper limit on what lenders will lend based on your potential to run up debt across all your accounts.

Some on here will say to keep them open but I, based upon working for a bank in a position that had discretion to make lending decisions, would say close them for the most part.

Potential debt is not as bad as actual debt but it isn't far off.

Ben8282

boo_star. Can I ask an opinion on something please.
If an individual with a spotless credit history and no non-mortgage debt who spends a decent amount on credit cards each month and repays in full has total available credit in excess of annual income and a card that they don't want any more because it offers nothing, no rewards, no 0% offers, nothing but which has a good credit limit (2nd highest) , would you suggest they close the account or keep it open in a situation where a recent application for credit for a good card was approved no problem but with a lower credit limit than would normally be expected?

andywardinnit

Thank you for the replies, much appreciated