Should I keep my Egg card open to improve my credit rating?

icebergx · 17 April 2006 at 2:58PM

Hi all,

I'm in the process of trying to improve my credit rating and took out my first credit card to do so in January. The card, I received is coming towards the end of its six months interest-free period on purchases and duty are the recent changes in its terms and conditions I'm contemplating cancelling it.
I recently took advantage of HSBC's offer of £20 for opening a credit card with them and will be transferring over my egg card balance.

My question is should I cancel my Egg card once the balance transfer has gone through or, should I keep it and make small purchases on it, paying these off immediately? This way, I can demonstrate that I've met the monthly payment requirements for two credit cards.

Any feedback would be very welcome.

grumbler · 17 April 2006 at 3:11PM

Two cards with not very big limits is not too many. If you cancel the Egg Card, your tarting activity gets too obvious. Keep the Egg Card for now, but ask them to reduce your limit. For spending apply for Egg Money card to get 1% cashback. You are likely to be accepted without a credit search as you aleady have Egg Card.