Starting at the basics - credit cards and how does using them effect my credit rating

Kidders

Hi

So i recently transferred my debts onto 0% balance transfer (Virgin) credit card, got rid of my overdraft and slowly making a dent on the virgin card debt. It was all going well but my day to day spending credit card (HSBC) (which i aim to pay off in full each month) has got a little out of control over christmas. I have some money left on the virgin card which i'm planning on using to pay off my HSBC card which is currently at a high rate of interest

Guess i have a few questions if anyone can assist...

1. If i stop using my credit card all together will this effect my credit rating? Am I best keeping a small amount going on it to keep my rating high?
2. I want to apply for a new credit card for purchases which is lower than my HSBC card but i'm worried that if i do that now, come November (when my 0% virgin balance transfer card runs out) i wont be able be accepted for a new balance transfer card because i have used up my quota for the year?! (sadly i wont have paid it all off by November) Will the alarm bells ring in the world of credit cards if i apply for more than 2 in one year?!

Bit long winded but thanks in advance for the advice

anotherpaul_2

If you get a new card now and close the HSBC one, you should be fine for November.

If the Virgin offer expires in November and is for 16 months (presumably) you must have applied for it in June or July? I think the 0% offer only applies to transfers made in the first 2 months (could be wrong) so isn't it too late to get more? Or do you mean you have cash from the last transfer left?

Also, bear in mind that the transfer is going to cost you 3%, so it might be cheaper to just pay it off over a few months (depending on how quickly you can clear the HSBC card if your only making minimum payments to the Virgin card).

Kidders

Thanks for the advice

My deal was only for 12/13 months and i can "enjoy" 0% on all balance and cash transfers until end of Nov. So i think i'm OK. Still get those cheques through the post monthly too!

My transfer fee would work out at £54 and my interest on HSBC works out at about £25 a month, so would work out better for me transfering. What i like the idea of is having it all on the one card as easier to manage, then hope that the 0% balance transfer deals are still good and going strong in November

Now all i need to do is find the best purchase creditcard, but i think im in the right place for that