What Should Stay Open and What Should Close??

Sammy_Girl

Evening All,

I am after some advice please. I have a few current credit card accounts and I'm not sure which ones to keep. Basically I have adverse credit - 2 settled defaults - one Dec 2005 and one March 2007.

For the past couple of months I have been trying to rebuild my credit rating as we are due to remortgage in March 2009 and I want to give myself the best possible head start. My credit accounts are as follows:

Halifax Classic - £1900 limit - current balance £0.00 - 24.9% apr
Capital One - £1600 limit - current balance £0.00 - c.30% apr
Vanquis - £250 limit - current balance £0.00 - 39.9% apr
MBNA - £3100 limit - current balance £2500 - current bt rate of 1.9% apr
Amex Cashback - recently accepted so no details??

Now, obviously the highest apr would be first to go - but I never carry a balance on these.

I have had the Halifax since 2002 so quite a bit of payment history - no defaults but about 3 late payments from 2005/2006.

All of the others will only have about 6-9 month payment history by the time I start remortgaging.

So, if I got rid of the Halifax and kept the other 4 would it matter that I would only have a relatively short payment history on these. Tbh I want to get rid of the Halifax as I have not had an increase in 4 years, and it doesn't do much for me. If I cancelled the Cap 1 and Vanquis, would it have a detrimental effect if they're on my credit files with a very short life span.

Any advice much appreciated, as I am aware that too much available credit can be a bad thing.

Many thanks for your time

calibrax

I'd definitely cancel the Vanquis - having it is an indicator of prior debt problems, as it's a sub-prime card. And a £250 limit is no big loss.

clio

Ask Halifax if they have any offers going if they say no then say close my account please.
do the same with Cap1 and ask the same as above. it,s best to ask 1st before being hasty
and closing card down. after all shy bairns get nowt ....

YorkshireBoy

calibrax wrote: »

I'd definitely cancel the Vanquis - having it is an indicator of prior debt problems

To whom though? The card provider's name is not shown to other lenders searching your credit file for lending purposes.

Unless you're referring to using it for purchases and being embarrassed/ashamed when you pull it out?

Sammy_Girl

I'm not ashamed to pull anything out of my purse - apart from mothballs lol

For some weird reason, I actually like my Vanquis - it's like my little baby lol. Weird I know!!

Thanks for the advice guys. I don't really want any credit limit increases as I won't use them. I've got these cards now purely for rebuilding my credit. I just think maybe 5 are too many and may put lenders off?? I don't know and I'm hoping you guys can tell me. The only reason I haven't cancelled the Halifax is because I've had it so long and it shows a stable payment record.

calibrax

YorkshireBoy wrote: »

To whom though? The card provider's name is not shown to other lenders searching your credit file for lending purposes.

Unless you're referring to using it for purchases and being embarrassed/ashamed when you pull it out?

Oh, I thought the lender's name was visible on the credit report? Is that not the case?

I suppose there is the embarrassment factor though for some people. Personally I don't worry about that. Although I would like a black Amex