GET RID OF UNUSED PLASTIC, IT MAY PUT YOUR CREDIT RECORD AT RISK

Q Over the years I have acquired a number of credit cards I never use. The reason I keep them is all the fuss and red tape new customers have to go through, so I stay on their books in case I want one of the bank’s products. But is keeping the cards a good idea?

A Simon Linstead, head of personal finance at advice site uSwitch.com, says the answer is definitely no.
“Dormant credit cards are not good for someone’s credit record and leave consumers vulnerable to fraud, particularly if address details aren’t updated.” You may also be refused credit by another provider because you already have lines of credit open — even if you are not using them — and the total amount you could get with all your cards would exceed the amount which a new lender reckoned prudent. A further consideration is that many card companies offer their best deals to new customers only, so you will not qualify if you have their products lying in your sock drawer.

Q I am a keen collector of financial memorabilia and recently bought an ancient moneybox on eBay that has “Leeds Permanent Building Society” inscribed on it. Is this the same Leeds Building Society that exists today?

A No it isn’t. The present Leeds Building Society was known as Leeds and Holbeck until 2005. Your moneybox was issued by the Leeds society that merged with Halifax in 1995. The combined society demutualised and floated on the Stock Exchange in 1997 and eventually merged with Bank of Scotland in 2001 to form the HBOS group.
A third Leeds society, the Leeds Provincial, became National Pro­vin­cial in 1983. In 1996 it was taken over by Abbey plc, now part of the giant Banco Santander. Leeds & Holbeck “bought”  from HBOS the Leeds trading name it uses now, in exchange for a donation to charity.

QThe end of an interest-free period on my current credit card is looming and I want to transfer the balance to another card. Which offers the best deal?

A According to financial site Moneyfacts the best deal is the Virgin Money MasterCard, with an interest-free period of
15 months from the date of issue. The fee is 2.98 per cent of the balance transferred, with a minimum of £3.
Other cards to consider are the Egg Visa, which offers interest-free credit until September 1, 2009, with a fee of 3 per cent; and Barclaycard’s OnePulse Visa with balance transfer, which offers 14 months’ free credit and a transfer fee of 2.9 per cent (a minimum of £7.25).

Q I have got myself into financial trouble and have been receiving very nasty letters from a debt collection agency, issuing all sorts of threats. I have seen some advertisements in the newspapers about people who can help with debt advice but how do I decide which is the best one?

A If you are being chased by someone threatening legal action, don’t ignore it. Get help right away.
The golden rule is never to pay for debt advice. There are numerous agencies that can help you for free. These include your local Citi­zens Advice (get the number from the phone book), Consumer Credit Counselling Service (www.cccs.co. uk) and the National Debtline (0808 808 4000). These are all free services — you should not have to pay for debt help if you have financial difficulties.

Q People keep going on about how I should change my gas and electricity providers because I am still with the companies I was landed with when they privatised. But how do I go about it? Sales people knock on the door, promising to get me a better deal, but I hate dealing with doorstep sellers and I never know if they are telling the truth.

A Your best bet is to use one of the online comparison services such as confused.com or switchwithwhich.co.uk. If you do use an online service, make sure it is signed up to the Energywatch Confidence Code — there will be a logo on the site if it is. This means the site compares all prices on offer by all suppliers — some online services offer just a selection. You can sign up online and the company you eventually decide to switch to does all the rest.