What happens to my credit report if I cancel a contract in the cooling off period?

Dear James,

I recently opened an o2 phone contract and wondered what will happen to my credit score if I cancel within the 14 day cut off time?

Jane, Warrington

Dear Jane,

When you applied for the mobile phone contract a credit application footprint will have been recorded on your credit report. As your application was successful, a record of the new account should also be added to your credit report, usually within a few weeks.

Opening any new credit account may result in a small temporary reduction in your score. One of the reasons is that a new account will decrease the overall average age of your accounts. The credit application footprint can also affect your score, but this is unlikely to be significant unless you have also applied for further credit recently.

If you do close the account within the 14 day cooling-off period, the application footprint and new account record should continue to appear on your credit report. However, the provider should subsequently update the account entry on your report to show it has been closed. Some phone providers register two accounts for customers taking both a handset and a monthly contract. Checking a copy of your credit report will show you exactly what has been recorded for this application. Don’t forget you can now monitor your Experian Credit Score for free using Experian CreditMatcher, which gives you access to a free score every 30 days. (November 2017)


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