Any Chance?

MidlandsMum

I'm slowly but surely chipping away at our CC debt. OH has a Virgin Mastercard that has a 7400 limit and is now clear. Do you think if I get him to call them and close the account they will try and keep him with a sweetener, or will the general downturn make them happy they've got another account off their hands?

He's also got an Egg card with a 6500 limit that has only a couple of hundred remaining, is it better all round if we call them to drop the limit on that too? I cant see him ever using it again (well, if I have anything to do with it anyway). I understand that having too much credit available doesnt look too good on a credit file.

And while I'm at it..... As I've been paying off my barclaycard, Barclays have been dropping the limit to just above the balance. The balance is now about 100 pounds and the limit 220. Will they just close this as a matter of course when I'm finished with it or do I have to request the account closure?

I understand most of these questions have the same answer as "how long is a piece of string?", but even though I've been using the things for years I'm only recently starting to understand how credit cards and credit card companies actually work!

Thank you!

Bismarck

MidlandsMum wrote: »

I'm slowly but surely chipping away at our CC debt. OH has a Virgin Mastercard that has a 7400 limit and is now clear. Do you think if I get him to call them and close the account they will try and keep him with a sweetener, or will the general downturn make them happy they've got another account off their hands?

If the card's now clear, I suspect they'll think you're good for more debt so they'll give you a revolving sweetener...try it...just ask "what are the offers for this card"...let them see what the computer says but it can take about 5 to 6 weeks to clear itself so that it will offer you something again. Others may have had different experiences but having a zero balance for a while does seem to trigger a new offer cycle. If you get nowhere with this, then try the "closing the card down" gambit but don't put too much faith in this!


He's also got an Egg card with a 6500 limit that has only a couple of hundred remaining, is it better all round if we call them to drop the limit on that too? I cant see him ever using it again (well, if I have anything to do with it anyway). I understand that having too much credit available doesnt look too good on a credit file.

But, having credit available could be essential if availability gets tighter - depends on what other funds /measures you have available for emergencies...are you planning on applying elsewhere for credit or not?

And while I'm at it..... As I've been paying off my barclaycard, Barclays have been dropping the limit to just above the balance. The balance is now about 100 pounds and the limit 220. Will they just close this as a matter of course when I'm finished with it or do I have to request the account closure?

Have Barclays explained why they are effectively chasing you off the card? It may be that the limit could start creeping up again once you've cleared it and left it a while...personally I'd leave it once it's at zero and, again, having proved you can clear it they may give you a good offer and a small available limit with them will hardly make a difference to any CC applications that you may want to make.

I understand most of these questions have the same answer as "how long is a piece of string?", but even though I've been using the things for years I'm only recently starting to understand how credit cards and credit card companies actually work!

You're far from the only one! I had cards for years without knowing much about them...just took what I was offered but being a bit in control is far better!

mark55man

I am in a similar position, have a credit limit well over any intent I have to spend again (from the bad old days) but not entirely sure whether to get rid off it (washing of the hands) or to keep it for stoozing (not this year, and maybe not next, but sometime).

I also have a card with 32p credit on it, but I can't remember which it is :embarasse

Bog_Brush_2

This is a copy of a post I made the other day

Re Virgin

Wife just phoned normal number for a balance transfer,got rubbish offer.
She then phoned retentions to say she was going to cancel was offered 0%BT until jan 2009 0% purchases until Oct 08. they waived the BT fee and reduced standard rate after special offers to 12%. They also raised credit limit

regards

Bog

Moggles_2

Originally Posted by MidlandsMum
He's also got an Egg card with a £6500 limit that has only a couple of hundred remaining. Is it better all round if we call them to drop the limit? I can't see him ever using it again (well, if I have anything to do with it anyway). I understand that having too much credit available doesn't look too good on a credit file.

Originally Posted by mark88man
I am in a similar position, have a credit limit well over any intent I have to spend again (from the bad old days) but not entirely sure whether to get rid of it (washing of the hands) or to keep it for stoozing (not this year and maybe not next, but sometime).

I would think carefully before you reduce these limits. Lowering a credit limit benefits the lender, but what's in it for you?

Be aware too, that it isn't always possible to re-instate some of the old limit should you change your mind later.

Other things being equal, it's better (credit score-wise) to have fewer cards with higher limits, than a clutch of cards with lower limits. So, if you want to reduce your available credit, better to cancel a card completely, as Martin advises, than voluntarily reduce the
limit each time a debt is paid off.

Cards that are closed down and marked "settled" stay on your credit file for six years and indicate that you can handle a decent sized credit limit well.;)

Moggles_2

Originally Posted by mark88man
I have a card with 32p credit on it, but I can't remember which it is.

Completely off topic but, if you've lost the relevant paperwork, you can still identify the card from a credit report.(For help, see the *How to obtain credit reports* sticky.)

The simplest solution, provided that the card hasn't expired, would be to spend the 32p. You can then settle the bill in the normal way. Otherwise, I would phone Customer Services and ask them to forward a cheque for 32p.