Close accounts???

MikeJXE

Cut them up so you don't slip  back to where you were

Ebe_Scrooge

Alex9384 said:

DailyHail said:

Erm… sorry but no.

Why would it look like anything else apart from closing an account with a settled balance?

....

The algorithms are pretty smart you know.

From reading dozens of threads and hearing from other users, banks will always assume the worst things possible about you.

Applying for new accounts because you want switch bonuses? Omg, hungry for credit!

Going regularly over certain percentage of your limit? Omg, relying on credit too much!

Carrying card balance because it's still on a promotional 0% rate? Omg, he's struggling to pay it off!

This is not totally accurate.

Opening a new current account will have negligible impact on your credit history.  If it comes with an overdraft facility then yes, that's a line of credit, if no overdraft facility then no issue at all.  But in either case, current accounts are of little concern to lenders.

Percentage utilisation - completely irrelevant if you're repaying in full every month (despite what the CRAs would like you to believe).  It only becomes an issue if you're carrying a large balance from month to month.

0% promotional rates - these are flagged as such on your credit report, so a lender will not be concerned by you making only minimum payments, it's expected behaviour.  Yes, paying only the minimum on an ordinary interest-bearing card is a red flag, but not a problem if it's a 0% promotion.

phillw

Ebe_Scrooge said
so a lender will not be concerned by you making only minimum payments, it's expected behaviour.

And someone taking time to close their accounts? Why would you do that?

Can't you trust yourself? Then why should they trust you?
Trying to make yourself look more attractive? What are you trying to hide?

WillPS

Alex9384 said:

facingmyproblems said:

Thanks for your comments so far.  I’m interested as to what it does to your credit file if you close credit cards 

Do NOT close multiple accounts at once!
That makes it look like you've done something really bad and multiple lenders tried to get rid of you.
I have 6 credit cards as well. Even if I didn't need them at all, I would still keep at least 2, preferably the oldest two. Long standing accounts look good on your credit files, as long as they have a good history.

I would suggest to close 4 of your cards and keep the 2 oldest, or most useful, i.e. with rewards or with some 0% offers on them. But close them one by one with a few months in between each. Which one is the most useless to you? For example, highest APR, or lowest credit limit? Start with that one. Then after a few months, close another one, and so on.

You're presenting all this as undisputed fact. It is not. The banks all have proprietary algorithms or scores. They have no official knowledge of one another's, and only very limited and already outdated unofficial knowledge as staff move between organisations.

You have no knowledge of any of these algorithms.

I have personally closed multiple accounts within a few days of eachother and it's never caused me problems. That also means nothing however.

Banks have access to multiple agencies aside from CRAs which allow them to establish a picture of wrongdoing by the applicant at the point of application.

Keeping your longest held card is sensible, along with any which give you ongoing rewards. I'd close the others, personally.