Advice requested - new credit card

roofusb

Hi all,

I'm looking for some advice / experience from the forum on what credit card I should apply for - I'm looking for either a BT card to do a bank account transfer, or a 0% purchases card (currently looking at Tesco), as I'm going to be paying for a fairly expensive holiday (circa 3k) in the next few months.

Will try to provide as much relevant info as possible. I have a good credit history (1 missed payment in the last 6 years, approx 4 years ago but on a Tesco card), and current have the following cards:

Virgin - limit 5500, balance zero (want to keep it due to recurring BT offers)
Barclaycard Platinum - limit 2250, balance zero (thinking of cancelling)
Amex Platinum - limit 5300, used for business expenses and cleared in full each month
Egg Money - limit 5000, used for personal spending and cleared in full each month
Abbey/Santander Zero - limit 4600, used for foreign spending and cleared in full each month

I have current accounts with Barclays (2500 o/d, dip into it occasionally but cleared each month when i'm paid) and HSBC (500 o/d @ 0%, 480 used).

I recently (2 months ago) applied for a new HSBC credit card but was refused - checked CRA reports and all ok, so I suspect it's because I had another HSBC card within the last 18 months.

So my basic questions are:

1. Should I cancel my Barclaycard - I don't use it, and the limit is relatively small. Are there any benefits to keeping hold of it?

2. How is my overall available and used credit likely to appear (and appeal) to card issuers (I have a salary of around 45k, and no outstanding loans except a mortgage)?

3. Is the HSBC rejection from 2 months ago likely to significantly inhibit my application for a new card now? I've had one other search in the last 6 months (Next Directory), and one in the 6 months before (Abbey Zero)

4. Would Tesco be the best option for a new card, especially given the previous single missed payment? Any other suggestions?

Any advice appreciated! Sorry for the long post but wanted to provide all the relevant info - happy to provide more info if required.

Moggles_2

Should I cancel my Barclaycard? I don't use it and the limit is relatively small. Are there any benefits to keeping hold of it?

If the aim would be to reduce your available credit prior to submitting an application for new credit, it's already too late. The whole process (from the initial phone call to Barclaycard) can sometimes span a month or three, so allow plenty of time.

B'card has regular, existing-customer offers, so may be worth keeping in your deck.

Moggles_2

How is my overall available and used credit likely to appear (and appeal) to card issuers (I have a salary of around 45k and no outstanding loans except a mortgage)?

Absolutely fine.

Moggles_2

Is the HSBC rejection from 2 months ago likely to significantly inhibit my application for a new card now? I've had one other search in the last 6 months (Next Directory) and one in the 6 months before (Abbey Zero)

The credit reference agencies do not record credit card rejections, only credit checks.

Credit checks are viewed as negative only if you attract too many in a short space of time. Each search drops off your file after 12 months, so the effect is fairly short-lived

Moggles_2

Would Tesco be the best option for a new card, especially given the previous single missed payment?

When did you close down the old card account?

roofusb

Hi Moggles - thanks responding to all my questions!

My previous Tesco card was settled at the end of 2005, with the missed payment being right at the start of that year.

I guess my main concern with the application is whether having so much credit already available, and none of it actually used, I will appear as a "good customer" (i.e. potentially profitable) for the lender, or if they'll just see me as a tart.

Moggles_2

roofusb wrote: »

My previous Tesco card was settled at the end of 2005, with the missed payment being right at the start of that year.

In that case, you've nothing to worry about on that score. You have an excellent payment history. It will be seen that you have maintained all your accounts perfectly ever since.

I guess my main concern with the application is whether having so much credit already available, and none of it actually used, I will appear as a "good customer" (i.e. potentially profitable) for the lender, or if they'll just see me as a tart.

Bear in mind that potential lenders cannot assess the way you handle credit directly. The best indications they have are the payment history and credit limits on your existing cards with other lenders.

As a result, the more flawless lines of credit you have, the more new credit you're likely to be offered. I'm sure you'll be fine