Looking to apply for new credit card - credit limit question

epsilondraconis

Hi all,

I'm thinking of applying for the M&S card (0% purchases for 10 months) so I can continue my slow stooze.

I have 4 credit cards with limits amounting to approx £31k (plus an additional £2k overdraft that has never been used). In the last week I have just closed one down credit card that had an approx £7.5k limit.

One of the other card's has a slow stoozed debt of £10.5k and the other a slow stoozed debt of £5k, the remaining card has no debt. The card with the £5k debt has the 0% promotional period ending within a month and so I will pay that off.

Do people think I should first wait and pay off the £5k debt and then leave it a couple of weeks before applying for the M&S card. Taking into account I have within the last week already cancelled a card with a limit of £7.5k

Also I was thinking of reducing the overdraft to say £500 from the £2k; however will this be negatively received by those viewing my credit file?

Other factors, my income approx £44k; joint income £60k; mortgage outstanding £99k.

Thanks for any feedback.

Edit: No adverse credit. No credit checks in last 3 months. Probably 2 credit checks in year prior to that.

YorkshireBoy

I think on the figures you've posted you'd be accepted for the M&S card now, especially since it asks for household income (by default?). However, you might not get the desired limit.

Zero balances can take 1-2 months to update with the CRA's, and settled accounts 2-3 months in my experience (and depending on the provider). If you want to maximise your chances you really ought to order your credit reports first to check the situation. £2 statutory reports are valid for enquiries on existing accounts for 90 days so wait a month, order, and then ring every couple of weeks or so (freephone number on www.saynoto0870.com).

My £3K unused O/D facility didn't seem to affect my limits on my last round of applications back in September/October. However, things have changed since then. On balance though, I'd leave it alone...unless there's another reason for lowering it, or one for not needing it?

Re the M&S card, why not fast-stooz it with the Sterling travellers cheque loophole? Then slow-stooz the 2.5% minimums and put any additional spend on another card. There's a 1% fee, but if you bagged some decent savings accounts last year (assuming you're not offsetting?), such as Egg 6.3%, Halifax 6.25/6/5%, etc then you'll still make a decent return (I know I am ).

epsilondraconis

Cheers YorkshireBoy - I was hoping you'd post as I knew I'd get some sound advice.