ASDA/Creation card - do I need to formally close it? Affecting my credit rating

PlornishNeil

Hi
I had an ASDA credit card, but when they declared the relationship with Creation was over, I decided to let it lapse (balance cleared and ASDA vouchers all spent) as I wasn't interested in keeping a creation card.
Trouble is, it's still showing up on my Experian credit report and I think it is affecting me when I recently applied and was refused for another credit card to replace/transfer a balance from another (Virgin) credit card where the 0% interest free period is expiring shortly. The rejection note seemed to indicate that I had too much unused credit available. I have the top score on Experian.
I called Creation to check the account was definitely closed and was told it was and that "credit reports are only updated 4 to 6 weeks" so I would just have to wait. It's been 4 weeks since I rang creation, and it's still the same.
Trouble is, the Virgin card runs out in October and I want to avoid paying interest (I understand I will have a balance transfer fee on any new card).
Should I write to Creation to put it in writing that I want to close my account? Would that make any difference?
Or would I be better to approach a new lender by phone rather than online to make an application for a new balance transfer/purchase card, and be able to explain my circumstances?
Thank you for any advice or experiences you share.

bradders1983

You have the top score on Experian?

Brilliant! You know its meaningless and no lender ever sees this made up score, yes? 

https://www.moneysavingexpert.com/loans/credit-rating-credit-score/?_ga=2.95482716.133122869.1597850891-382089025.1549095495

See section 5.

D3xt3r5L4b

You just need to wait for them to update the CRA’s. 

What kind of a balance are we talking about here?

cymruchris

Writing to them won't make any difference. The updates will happen when the updates happen. In the current circumstances many financial institutions are slower with their updates. Telephoning the prospective new card company won't give you any advantage, as they'll take a snapshot of your credit file on the day you make an application, and won't take any notice of you telling them that you've closed an account - they only work off factual data. You'll just have to be patient for everything to update - if they indicated you have too much available credit - what other cards do you have - and what does your total across all cards limits total?

MinuteNoodles

It isn't the fact you've a dormant card causing the issue. It most likely isn't the number of cards you have as I had three and had no trouble applying for a fourth (all offer various non-borrowing advantages and all paid off in full every month when they're used) even though it can be months or more when one or more cards goes unused so it suggests another problem. 

You say you want to BT the Virgin card which suggests you're carrying some long term debt and in the current situation where lending is being tightened up then that may be the reason, that you're not reducing the balance fast enough. Ideally with a BT you want to set direct debits up to clear it by the end of the 0%, not rely on the ability to get another 0% deal because as you're finding out it's not guaranteed you will be able to.

PlornishNeil

bradders1983 said:

You have the top score on Experian?

Brilliant! You know its meaningless and no lender ever sees this made up score, yes? 


See section 5.

I didn't know, but thanks for enlightening me!

PlornishNeil

D3xt3r5L4b said:

You just need to wait for them to update the CRA’s. 

What kind of a balance are we talking about here?

Thank you for your comment. Out of interest CRA = Credit record A??
The balance is £7,600.

PlornishNeil

cymruchris said:

Writing to them won't make any difference. The updates will happen when the updates happen. In the current circumstances many financial institutions are slower with their updates. Telephoning the prospective new card company won't give you any advantage, as they'll take a snapshot of your credit file on the day you make an application, and won't take any notice of you telling them that you've closed an account - they only work off factual data. You'll just have to be patient for everything to update - if they indicated you have too much available credit - what other cards do you have - and what does your total across all cards limits total?

Thank you for your advice. I had thought that this would be the case, but you never know!
I only have two cards - the Creation card (which should be closed) and the Virgin card which has a balance of £7,600 that I want to transfer to a new card.

PlornishNeil

MinuteNoodles said:

It isn't the fact you've a dormant card causing the issue. It most likely isn't the number of cards you have as I had three and had no trouble applying for a fourth (all offer various non-borrowing advantages and all paid off in full every month when they're used) even though it can be months or more when one or more cards goes unused so it suggests another problem. 

You say you want to BT the Virgin card which suggests you're carrying some long term debt and in the current situation where lending is being tightened up then that may be the reason, that you're not reducing the balance fast enough. Ideally with a BT you want to set direct debits up to clear it by the end of the 0%, not rely on the ability to get another 0% deal because as you're finding out it's not guaranteed you will be able to.

Thanks for your advice. Yes, next card definitely needs to be cleared before the end of the period.

cymruchris

PlornishNeil said:

cymruchris said:

Writing to them won't make any difference. The updates will happen when the updates happen. In the current circumstances many financial institutions are slower with their updates. Telephoning the prospective new card company won't give you any advantage, as they'll take a snapshot of your credit file on the day you make an application, and won't take any notice of you telling them that you've closed an account - they only work off factual data. You'll just have to be patient for everything to update - if they indicated you have too much available credit - what other cards do you have - and what does your total across all cards limits total?

Thank you for your advice. I had thought that this would be the case, but you never know!
I only have two cards - the Creation card (which should be closed) and the Virgin card which has a balance of £7,600 that I want to transfer to a new card.

If you only have two cards - and one of them is now closed - you have a relatively thin credit file when it comes to credit cards. If that £7600 has been lurking for a while - it can be a warning flag to any new lenders you approach - that's more likely the issue than the closure of a well-maintained account. You'll also likely find that if successful, your initial credit limit won't be high enough to transfer your full balance. You might need to start planning as to how to reduce the debt, rather than how to shift the debt around.