Should I close my credit card?

supremo_2

I have just paid off a HBOS classic credit card.

I have £7750 available to spend and it is HBOS who I bank with.

I would like to get an interest free credit card to pay off an MBNA card I have which has £1800 oustanding on it (I am paying about £40 per month interest)

Should I shut my HBOS card completely to improve my credit rating? or would the fact I have a card which I dont use improve my credit rating?

I have been knocked back for a HBOS interst free card about 6 months ago, but was thinking of applying again soon- is this wise? I think my credit rating was poor due to a few searches

I have a guarnteed loan from HBOS up to £13000 from about 6 months ago but the interest rate seemed pretty high on it.

Thanks for your help.

missile

Closing the card will not help your credit rating. Paying bills on time will.

dhassen

as far as I was aware having a large amount of available credit is a bad thing on your credit file - a lender will see you have that available when you apply for new credit - they'll consider the fact that you may go and use all that credit you have available once you have the new credit and over-stretch. does that make sense?

sicker

I would suggest you give them a ring and ask if they they have any offers on the go to keep the card open. If they offer nothing just ask them to close the card which leaves you the option to apply again if and when they do come out with an offer.

John

PS As an afterthought, ask for thier card retention dept.

CannyJock

Yup, do what Sicker says.

Read this article by Clariman first: http://www.makesenseofmoney.co.uk/a_extend.html

If they won't give you a deal that makes it worth keeping then close it for sure - plenty other good deals out there.

NickX

missile wrote: »

Closing the card will not help your credit rating.

Not strictly true, having cards with large amounts of unused credit certainly can have an adverse effect on future applications. The lenders can see that you have a large unused facility and may wonder why you are applying for even more credit, it also means that your total exposure to credit is high and there is always the possibility of maxxing the cards out and dissappearing abroad (not that anyone who visits these boards would do such a thing :rolleyes: )

missile

Al_Mac wrote: »

They haven't said they don't.

I never said they did, perhaps OP would like to confirm?

I think my credit rating was poor due to a few searches

missile

NickX wrote: »

Not strictly true, having cards with large amounts of unused credit certainly can have an adverse effect on future applications. The lenders can see that you have a large unused facility and may wonder why you are applying for even more credit, it also means that your total exposure to credit is high and there is always the possibility of maxxing the cards out and dissappearing abroad (not that anyone who visits these boards would do such a thing :rolleyes: )

This is correct and has been discussed a number of times. In this particular case, I don't think that it is relevant. OP said available credit £7750 and IMHO closing the account would not improve supremo's rating.

May I suggest OP speaks to HBOS and asks why the previous application was declined. It may be something obvious like you cannot have two credit cards with us :beer:

missile

Al_Mac wrote: »

Sorry, I thought you were implying the OP was a late payer, so that was the reason.

No worries mate, generally we only get half a story and it is easy to read too much into a post. :A

supremo_2

Hello cheers for all the advice.
I have missed a few payments in the past as I have had it 8 years so incurred a few fines, but I have not missed a payment on it in over a year or 18 months now.

I recently missed one on my MBNA, I have been refused credit for a car back in september, a Norther Rock credit card, and HBOS credit card in October I think. So I had quite a lot of searches on my account.

I asked HBOS why I was rfeused credit but they would not tell me they said they didnt know the reason I am sure.