Hi,
I would like to close one of my credit card accounts, the main reason being that my 6 month interest free period ended, so I transferred my balance. As a result I no longer use this card.
Having never closed a cc account before, do I need to tell the company to make a note that I have requested the closure, in order to keep my credit record in tact? Should I do this in writing? Any experiences of this?
Or is this not necessary??
Thanks in advance
rk
Just call them and tell them you want to close the account. They may offer you another deal to stay. The main reason for closing the account is that if you don't the credit limit appears on your credit file as being still available to you. Some companies are thought to decline credit to people who already have too much of it, so there is no advantage and perhaps a disadvantage to leaving it open but unused.
"John Redman" wrote in message news:dp1uvf$bla$ snipped-for-privacy@news8.svr.pol.co.uk...
Plus, if you close it there is less risk of fraudulent transactions taking place on it.
Rob Graham
"John Redman" wrote
"...thought to..."? Does anyone have any evidence of this for any particular provider?
"John Redman" wrote
Of course there's an advantage - you have extra credit available should you wish to use it later.
At 11:59:21 on 30/12/2005, Tim delighted uk.finance by announcing:
Evidence in what form? Would personal experience of working for a lender suffice?
Yes, HBOS recently turned me down on these grounds. I forget the exact words, but they were to the effect that I had so much available credit I shouldn't need any more.
True, but credit at a given company's standard credit card interest rate is not very valuable, compared to the same amount of credit from the same company at 0%. With very rare exceptions, the best deals are reserved for new customers, which is why there is no point keeping an account dormant but open. You are better off reapplying to the same company as a new customer later.
"John Redman" wrote
I wonder if they have changed policy in the last couple of years?
I know someone who, with over 100K existing available credit, applied for a 'Mercedes card' with Halifax (HBoS) and was given a credit limit in excess of 25K, no quibbles!
"John Redman" wrote
If all you needed were instant credit for a very short period, it would be perfect!
"John Redman" wrote
Egg offer an "anniversary" 0% deal for existing customers, and MBNA also often offer new 6 month 0% deals immediately after the end of the previous one. [Cancelling & applying again may put you back on a lower credit limit...]
"John Redman" wrote
That ignores other advantages such as keeping separate cards for different types of transaction, "spare" cards in case there is ever a problem/dispute with your other cards, etc etc.
"John Redman" wrote
Even back starting on a low credit limit?
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.