Credit Cards

[neiler]

I have 4 credit cards, however I only use one of them and indeed have never even activated 2 of them. The other while active, has never been used. (Don't ask how I ended up in the situation).

However, they're eating up my credit rating.

How do I cancel these - completely - so they no longer affect my rating?

[WendyS]

I'm afraid I can't answer your question but I'm intrigued to know how an unused and unactivated credit card can damage your credit rating. I have two cards, one of which is only used very rarely and both are paid off every month. But as I write, I've just remembered I was sent an M & S card about 18 months ago which I've never activated and don't intend to. Is this damaging my ratin?. It never even occurred to me.

[neiler]

They affect on the basis that I'm at my maximum credit limit and these cards are included in that limit.

I wanted to extend my loan (as it is considerably cheaper than credit cards) but because I - in theory - have access to all the extra credit, they wouldn't do it.

At least that's what the loan company said - could well be fobbing me off so I don't get annoyed at them saying no!!

[Oneeyedvic]

To cancel a card sinmply call up the card provider and tell them that you wish to cancel your card/agreement.

I did this with Barclaycard last week.

If you want you can confirm it in writing.

[Loosehead]

Vic I think neiler has an outstanding balance so she can't close the account without paying off the debt and she can't borrow elsewhere to repay it because of the credit already in place.

[brachiopod]

I understood the question to mean that neiler has never used three of the four. (2 never activated, 1 activated but never been used), so I can't see how you interpret that to mean an outstanding balance on them, loosehead.

[Oneeyedvic]

That was my interpretation to Brachiopod.

[Loosehead]

Sorry guys, I misunderstood, when Neiler said he was at his max limit it threw me a bit.

Presumably if 2 have never been activated just write back and say you want to close the accounts can't see the difficulty there.

[WoWo]

If anything having the credit cards improves your credit rating. A credit history isn't just about bad debts it's also about demonstrating that you repay on time. If you have credit cards and have always payed them on time then that generally has a positive effect.

[brachiopod]

Agreed, WoWo, I know a few people with poor credit ratings because they haven't got a credit card !!

I suppose their thinking is;
No Credit Card = No Repayment History = Poor Risk

At the other end of the scale, I can see the thinking behind neiler's comment about already having access to a large amount of potential credit that they don't want to increase it, despite most of that potential credit not actually being used.

S0d's law really - they seem to make it up as they go along !!