Multiple Cards

tea_n_toast · 18 February 2018 at 2:01PM

My first credit card was a Barclaycard which I got to buy a hoover on 0% about three/four years ago. As always happens I added more to it, used it for Christmas, flights etc, transfers from other cards. I've always being paying it though and it's never been a problem. The balance currently sits at £788.54 and I've just transferred that to a new 0% card (6 months) and plan to pay off the balance in that period. I already pay around the same payment needed to do that but about £20-30 goes on interest so thought it best to transfer.

I also have a Capital One card which I got for day to day spending to prevent issues with my current account. We found we were leaving the account empty from buying groceries, fuel and DDs so other larger DDs were being returned or vice versa. Using the credit card has worked out beautifully. It allows my partners wages (weekly) to build up in the bank (obviously with things like insurance, council tax, car finance, mortgage coming off) and we just pay off the credit card with a DD.

My question is what to do with the Barclaycard. Should I start using it for the day to day spending? (Are they 'better' than Capital One?) Keep it empty for 'emergencies' or in the hope that I get a good offer in the future (will be doing VAST home improvements soon so a 0% offer could come in handy). Or do I close it? If I kept it for the day to day spending should I close the other?

So basically I have three cards -
Barclaycard - now empty with an £1800 limit
Capital One - £1000 limit with current balance of £555
Aqua - £788.54 balance 0% for 6 months. Won't use this for anything will pay off at £130ish per month.

Any advice would be appreciated. I am hoping for a large loan soon for a house extension so want to clear up my credit situation as best as possible and get myself in the best position I can for that.

Thanks!

[Deleted User] · 18 February 2018 at 2:04PM

I'd keep it. You have very low limits and it's always useful to have at least one or two back ups.

tea_n_toast · 18 February 2018 at 2:07PM

Thanks

Was just worried it might put lenders off for my loan.

System · 18 February 2018 at 4:13PM

tea_n_toast wrote: »

Thanks
Was just worried it might put lenders off for my loan.

I have four cards with the following credit limits:

£2400, £7000, £9000, £12000. The first one I only use for foreign spending, the second I used as a 0% loan, the third is one I keep if I ever need to balance transfer, the fourth is a cashback card I do all my spending on and clear in full every month. No balance on any other than the last one which has that month's spending on. Never caused an issue.

tea_n_toast · 18 February 2018 at 4:59PM

Great, thank you for that!

PLYSU · 18 February 2018 at 5:20PM

Hi. Just on the issue of the Barclaycard and closing it. When I check my credit report from Experian, I have 1 orange symbol. (green symbol is good, orange is not so good)

When I look at what that means it says " ACCOUNT STABILITY - The average length of your financial relationships is less than six years. Remember, this is not just bank accounts, mortgages, loans and credit cards, it can include utilities, mobile phone contracts, broadband and more"

I was always keen to close accounts when I was done with them, but actually if this account stability is a factor, it seems you might be better keeping them open for longer, even though you don't use them.

Multiple Cards

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