Cancelling Cards with Balance Outstanding - Affect on Credit Rating

alt80

Long story short I owe £40k on cards. Good rating currently but am thinking about cancelling all but one with balances to stop me from using them. Will this affect my rating? I’m not willing to do anything that will affect my rating. Also will it affect the interest rate - most are 0%?

Thanks.

D3xt3r5L4b

You don’t have a rating to be affected.

If temptation is there then cancel the cards. If you can manage them sensibly the keep them and use them regularly and clear each statement balance. 

[Deleted User]

You can't close accounts with a balance.  

You can cut up the cards, but that doesn't change the account or the APR.

alt80

Sorry I don’t really understand? Currently I have a good credit rating - no missed payments, accounts all up to date, cards not maxed etc.

Im not in a position to clear the statement balance unfortunately unless you mean any new spending - there’s a total of £40k owing and I can’t clear that all in one go.

alt80

Deleted_User said:

You can't close accounts with a balance.  

You can cut up the cards, but that doesn't change the account or the APR.

Thanks. I’ll just leave the cards as they are then. 

D3xt3r5L4b

alt80 said:

Sorry I don’t really understand? Currently I have a good credit rating - no missed payments, accounts all up to date, cards not maxed etc.

Im not in a position to clear the statement balance unfortunately unless you mean any new spending - there’s a total of £40k owing and I can’t clear that all in one go.

I mean no lenders ever see the score or rating you see. It’s a marketing gimmick to sell you products.

By statement balance I meant thereafter not the £40k owing.

If you owe £40k I would suggest posting on the DFW board. 

alt80

OK that makes sense thanks. If I can at least get to the point of not adding to the debt it would be a step in the right direction to start. 

Already got a post running on the debt free board.