2 cards have arrived at once!

bittennails

Dear All

I'd welcome some advice.

I've already got a credit card with a balance on it at zero percent interest. This introductory rate ends in January.

I applied for one card (HSBC) to transfer this balance to, but the process was taking quite a while, and I was also doubtful they'd give me a large enough credit limit, so I also applied for a card with my bank, lloyds TSB.

You've guessed it: both cards were approved, and the HSBC one appears to have a fairly high-ish limit.

So what would you advise?

I don't really want 2 additional cards.

Should I cancel one of them straightaway?

In doing so, will I help to make my credit score any better, ready for when I might need to balance transfer again?

The cards I've been approved for a HSBC and Lloyds TSB

Sorry for the waffle - any advice appreciated :-)

Mr_Nick_3

I'd close two of them and keep one.

The only time i'd have 2 cards is if one was an Amex, with the other being a sensible card.

PS: and just as I posted this reply, my new Amex Blue was posted thru the door! This means I can now cancel my Mastercard, as I also have a shiny new Platinum Barclaycard to accompany the American Express.

bethyblue612

Are they both 0% cards?
Is the total of your available credit still significantly less than your income?
Do you have a good credit record?

If you can answer yes to all 3, then I can't see that there's any need to cancel a card at all, unless you are worried that you might end up spending money that you don't have.

nh

You could cancel either card and re-apply in five/six months' time but if these are your only cards I would doubt it would affect your ability to get another 0% deal even if you kept them both.

You could stooze the balance from the second card (see many of the other threads on here if you wish to do this) or you could just cancel it, it depends on how organised you are and how much are really want to make free money from the second card.

Or, you could keep the second card (say Lloyds) with a £0 balance and then in six months' time, ring them up and say you have a balance to transfer and could they extend your 0% deal for another six months. If not, close the card. As you had never used the card, i think the likelihood that they would allow you another six months is high.

Is one of these cards a 9-month 0% card? Obviously, that is the one you want to use for this BT if it is.

johnllew

Which card have you had for some time? Once you 0% deal is over, it may be suitable to extract money from the new cards and invest in a high interest savings a/c - what is called "stoozing" here.

I'd be very reluctant to cancel either new card if you can profit from their 0% BT offers.

Unbelievable_2

bittennails

Which one of your new cards has the longest 0% interest period. If you have a Lloyds Advance card with 0% on BTs for 12 months, then I would put as musch of your existing balance onto the Lloyds card as you can, and put the rest onto HSBC. ???

bittennails

Thanks for all the helpful replies.

The lloyds card has the longest 0% balance transfer period @ 12 months. The HSBC only 6 months.

I won't be tempted to spend on the one I don't need, so that's not a problem.

So really the lloyds card is the one I'd keep.

My main concern was if I'd inadvertently damaged my credit rating (and therefore the chance of getting another 0% card at a later date) by making these 2 recent applications.

If I was to close the HSBC one, can anyone hazzard a guess if the "health" of my credit score would improve quite quickly, if at all?

Thanks again :-)

bethyblue612

As the Lloyds is 12 months, are you saying that you probably won't apply for another card until that deal runs out?

If so, make use of the HSBC one for 6 months, and then cancel it when the deal runs out.

If these are the only 3 cards you've got, I wouldn't think that your credit rating is likely be seriously affected (unless the combined limits are close to your total income), there are people on here with loads of cards.

bittennails

Thanks for the advice.

This is where it gets slightly more complicated (cough!). I have another credit card, with a smaller balance on. So that brings the current total to 3...

If you add together what I owe on both current cards, it comes to slightly more than the maximum allowance on the new Lloyds TSB card.

However (just to confuse matters further) the zero percent on this third card doesn't expire until next March.

Which means that ideally I will need another apply for another card with a balance transfer facility in 3 months time.

I suppose a simpler question would be, if I cancel the new HSBC card now, is this likely to hinder my chances or re-applying for one with them - or another card issuer - next March?

Thanks again :-)

bethyblue612

Just had a thought - I'm pretty sure I've read on here somewhere that HSBC don't report to the credit reference agencies unless your account is in arrears, so, as long as you keep your payments up to date, the HSBC card won't affect your credit rating at all.

Also, as long as the HSBC limit is enough to cover your other card balance, even if you don't use it until March, it would then be May before you need to apply for another card, and if you're paying debts and not stoozing, you might even have paid the balance off by then anyway and not need a new card.

KEEP the HSBC card!! ;D

bittennails

Many thanks for the prompt advice