MBNA credit card closed

superM

Hi, 

I have 2 MBNA credit cards and 1 Lloyds card. 

I receive a text message to say 1 of my MBNA card will be closed and the credit limit has been reduced from 18k to £75. 

Later I checked the mobile app and the letter stated the account will be closed in 2 months mainly because I have not used the card for over 1 year. The mentions credit checks etc which I think standard letters. 

Wondering how it will show on the credit report that the credit limit has been reduced to £75? And then 2 months later account will be closed. 

Thanks 

MorningcoffeeIV

It'll show the new limit ibsuperM said:

Wondering how it will show on the credit report that the credit limit has been reduced to £75? And then 2 months later account will be closed. 

 It'll show the new limit in the month it's reported.

It will then show as closed on the month it's reported as closed.

superM

Yes I know that 
I don't care if the account gets closed. I am just wondering will effect my credit score showing credit limit of £75?

MorningcoffeeIV

Any change lowers your credit score. But no one will ever know or see it so it's not a problem.

Lenders will look at the data. If you have a sketchy history then having a limit lowered and a card closed might be an issue.

But if you're well established, then it's not a problem.

It's always worth having 3 or 4 cards 

martinbainbridge1975

would tend to agree with morning coffee above, I have shut all unused cards and kept 1 with a 3k limit, purely as not needed. my score has took a hit but having had credit for years and unblemished payment history I am not too concerned as it will recover plus the score is not the sole driving factor.

what is noticeable is that lenders have tightened criteria and slashed the 0 per cent periods

th081

Why don't you call up and close the account. It's is better to show a closed account than go from 18k to 75 then close 

superM

th081 said:

Why don't you call up and close the account. It's is better to show a closed account than go from 18k to 75 then close 

I didn't like limit to be reduced to £75 then closed. It would been better then blocked the account and closed at 18k limit. 

They have already reduced limit. I have sent them a message via the app to close the account immediately. 

It still possible £75 is reported to CRA and the closed. 

superM

martinbainbridge1975 said:

would tend to agree with morning coffee above, I have shut all unused cards and kept 1 with a 3k limit, purely as not needed. my score has took a hit but having had credit for years and unblemished payment history I am not too concerned as it will recover plus the score is not the sole driving factor.

what is noticeable is that lenders have tightened criteria and slashed the 0 per cent periods

I agree I think lenders have tightened up there criteria. I don't need another card until June 2024. This is when my NatWest 0% expires. 

th081

superM said:

th081 said:

Why don't you call up and close the account. It's is better to show a closed account than go from 18k to 75 then close 

I didn't like limit to be reduced to £75 then closed. It would been better then blocked the account and closed at 18k limit. 

They have already reduced limit. I have sent them a message via the app to close the account immediately. 

It still possible £75 is reported to CRA and the closed. 

I think if you closed the account promptly it won't show the revised limit. When I closed some accounts it took a couple of months to feed through so I think yours will just show closed at some point. 

martinbainbridge1975

th081 said:

superM said:

th081 said:

Why don't you call up and close the account. It's is better to show a closed account than go from 18k to 75 then close 

I didn't like limit to be reduced to £75 then closed. It would been better then blocked the account and closed at 18k limit. 

They have already reduced limit. I have sent them a message via the app to close the account immediately. 

It still possible £75 is reported to CRA and the closed. 

I think if you closed the account promptly it won't show the revised limit. When I closed some accounts it took a couple of months to feed through so I think yours will just show closed at some point. 

from experience I found that transunion shows the account closures the fastest, equifax/clearscore will show the limit reduction then the closure 

superM

th081 said:

superM said:

th081 said:

Why don't you call up and close the account. It's is better to show a closed account than go from 18k to 75 then close 

I didn't like limit to be reduced to £75 then closed. It would been better then blocked the account and closed at 18k limit. 

They have already reduced limit. I have sent them a message via the app to close the account immediately. 

It still possible £75 is reported to CRA and the closed. 

I think if you closed the account promptly it won't show the revised limit. When I closed some accounts it took a couple of months to feed through so I think yours will just show closed at some point. 

I just received confirmation via the app that the account is closed now. Hope for the best it is closed at 18k.