Should I cancel my credit cards to up my credit rating ??

DSmiffy

I have used a few credit cards over the last couple of years moving a credit balance around in order to take advantage of 0% interest while I paid the debt off.

Now it is nearly paid I am wondering if it is worth cancelling some of the credit cards as I will not be using them again ( learnt my lesson thanks !!).

Will this affect my credit score in anyway ?

How should I cancel them, I know I could just cut them up, but should I write to the companies concerned and get it in writing ??

Any help much appreciated thanks,

sicker

I myself would phone the ones I did not want and ask them to cancel the card. You never know you might be offered a good deal to retain the card if not it will not harm your credit rating.

John

grumbler

Should I cancel old credit cards? - Martin's article.

To cancell a card usually it is enough to call CS. And ask them to sent the confirmation by post.

Caped_Avenger

On a related topic, is it worth reducing the limit on CCs/other credit facilities to improve my chances of credit elsewhere?

Eg: I've got an account with Next, which i recently noticed has a (ridiculous) £3600 credit limit. On the basis that i've never used more than £100, and will probably not need more than £250 ever, is it worth me reducing the limit?

I've also got a Morgan Stanley Mastercard with a £1700 limit, which is highly unlikely to be used again since Egg Money got into my wallet, but i need to keep it open until December in order to get my annual cashback. Is it worth me reducing the limit on this card?

My gut feeling is "yes", but i'll be interested to hear other opinions .

Repo

If you're only using £100 of the credit limit then I can't really see the point of having it at all.

Caped_Avenger

Repo wrote:

If you're only using £100 of the credit limit then I can't really see the point of having it at all.

Well, it allows me to get stuff delivered without having to go out, and i get up to a month and a half interest-free credit, like a CC, but that's beside the point.

Hang on, perhaps i should have been more clear. By Next, i mean Next Directory, i have an account with them. It's not a CC, just a catalogue account.

grumbler

Caped_Avenger wrote:

....is it worth reducing the limit on CCs/other credit facilities to improve my chances of credit elsewhere?My gut feeling is "yes", but i'll be interested to hear other opinions

The answer is 'yes' if total credit available is close to your annual income. Otherwise, *I think*, high limit with some provider can help to get comparable limit with a new provider.

P.S. YB, thank you for congradulations below. I do appreciate this and understand what you mean .

YorkshireBoy

grumbler wrote:

*I think*, high limit with some provider can help to get comparable limit with a new provider.

Yes, the Co-op is one example of this. I believe they agree to match your highest existing limit.

Congratulations on reaching 2,000 useful posts by the way grumbler.

frugglewump

Do they match your actual highest limit or just the highest limit on your credit report?

I ask because my HSBC card with a £6k limit doesn't show up on either my experian or equifax reports, presumably because i got it with no questions asked when i changed my account to a student one back in 1993.

YorkshireBoy

frugglewump wrote:

Do they match your actual highest limit or just the highest limit on your credit report?

I ask because my HSBC card with a £6k limit doesn't show up on either my experian or equifax reports, presumably because i got it with no questions asked when i changed my account to a student one back in 1993.

I've got (a lot of) "hidden used/available" credit that 6 of our stoozing credit card suppliers cannot see - and I prefer to keep it that way.

If you're "volunteering" that you have additional available credit, and the total is approaching 100% of your salary, then new lenders will be nervous about giving you additional credit.

It's your call, but I'm keeping quiet about mine.

mountainofdebt

Yes if you don't use your credit cards then cancel or reduce the limits on them.

Got rejected this week for a Natwest card and when I phoned to ask them why they said it was becuase of the available credit to me.

I am appealing as I have since cancelled/reduce the limits on my cards so fingers crossed!