Wave Credit Cards

thenugget2018

Hi All

I received an email yesterday (Monday 30th October) telling me that they are closing my account on the 2nd January 2024.

The email had this line:

We’ve taken the difficult decision to close all Wave credit card accounts. This is purely a business decision and is not because of the way you’ve used your account.

How would this affect my Credit Score when they close the account?

After this date would they send the remaining outstanding balance to debt collectors?

Regards

MrFrugalFever

Your credit score will likely drop as a result of the change of account status from active to closed, however, it's kind of irrelevant as your 'credit score' is just a universal number calculated by the credit brokers (who don't lend you money) and therefore a marketing tool. What lenders will care about is have you managed your credit lines appropriately.

Did the email not tell you what they will be doing with existing debt? Assuming you carry a balance and you will have a balance remaining come point of closure?

eskbanker

MrFrugalFever said:

your 'credit score' is just a universal number calculated by the credit brokers

It's not a universal number, not in the UK at least - each credit agency has its own scale and algorithm, but as you say the resultant numbers are ignored by actual lenders.

MEM62

thenugget2018 said:

How would this affect my Credit Score when they close the account?

Who knows?  But the good new is, as the 'score' is meaningless, you do not have to worry about it one way or another.  

thenugget2018 said:

After this date would they send the remaining outstanding balance to debt collectors?

They would have no reason to do that as long as you meet your contracted payments.  

cymruchris

Usually when a card is closed, it's frozen so it can have no new spend. The remaining balance is then paid off in the usual way - so if you're paying only minimum payment - that will keep happening until the balance clears, or if you're paying in full, it'll go out on your next regular direct debit.  In the short term your 'score' number will likely drop for a month as it's a 'change' - but will soon recover. Nobody cares about the score though, as only you see it.

Do you have another credit card?

Are you eligible for other products?

It might be worth running the eligibility checkers to see what you qualify for, and apply for a 'replacement' if eligible before this account is closed.

stuartmcleod1968

So if they are closing through no fault of me, do I still need to pay their exuberant interest rate, not my fault they can't run their business, I should just be allowed to pay off what I owe without a massive interest rate

cymruchris

stuartmcleod1968 said:

So if they are closing through no fault of me, do I still need to pay their exuberant interest rate, not my fault they can't run their business, I should just be allowed to pay off what I owe without a massive interest rate

Your terms and conditions will remain the same. The only change will be no new spend. It's not their fault you used the card and spent the money. I agree that rates are ridiculous - so hopefully you'll be able to do what you can to get whatever you owe down as quickly as possible to reduce their profit, and save your sanity.