What to cancel and when?

splatt30

Next year I hope to apply for a >12 month 0% BT card (currently thinking Halifax or Nationwide if deals remain the same) in the April.

I also want to open a Sainsburys card 0% on purchases for 10 months and nectar points probably in the March as am anticipating some large purchases.

I currently have a 0% BT on a virgin card and a tesco platinum which I use for my day to day spending and pay off in full every month. I also have a Natwest credit card which hasn't been used in nearly a year (it is from a previous balance transfer).

My banking is all now with first direct but I also have a Halifax current account which hasn't been used for nearly 18 months and has a balance of about £1.90 in.

So the question is should I cancel the Natwest card now to reduce my avaliable limit and increase my chance of getting the cards. Also will it make it more or less likely to get the Halifax card with the open though redundant account?

Am open to all opinions. I have a high wage and have never missed a payment or been refused credit. The BT is a stooze and I could make all purchases from savings but like offsetting the mortgage with free credit!!!

Moggles_2

Should I cancel the Natwest card now to reduce my available credit and increase my chance of getting the cards?

If you have just the three credit cards at the mo - NatWest, Tesco and Virgin - closing one now will neither help nor hinder your credit card applications next year.

Note: some lenders will not consider applications from former card holders for various periods following closure.

The Royal Bank of Scotland stable (which includes Lombard Direct, Mint, NatWest, Tesco & Ulster Bank, as well as RBS itself), makes former customers wait 8 months following cancellation of one of its cards, so closing your Tesco account could reduce your choice of card for a while

Moggles_2

I also have a Halifax current account which hasn't been used for nearly 18 months and has a balance of about £1.90 .... Will this make it more or less likely to get the Halifax card with the open though redundant account?

This would neither help nor hinder your cc application.

It comes as a surprise to lots of us, but the credit card arm of Halifax will have limited info about your current account with the bank due data protection regulations. If you were overdrawn, it would know about that, but the balance and manner in which the account is funded would not be known

splatt30

Thanks Moggles,
You're right I am surprised about the Halifax thing. I think I will close that redundant current account. I'll probably get rid of the Natwest credit card too.

opinions4u

My banking is all now with first direct but I also have a Halifax current account which hasn't been used for nearly 18 months and has a balance of about £1.90 in.

A non-customer is significantly less likely to get get a credit card than an existing customer. Even one with a virtually dormant account.

Moggles wrote: »

This would neither help nor hinder your cc application.

It comes as a surprise to lots of us, but the credit card arm of Halifax will have limited info about your current account with the bank due data protection regulations. If you were overdrawn, it would know about that, but the balance and manner in which the account is funded would not be known

I disagree. The Halifax Credit Card underwriting system utilises all Halifax/Bank of Scotland customer relationships prior to making a decision. Having a low balance account is better than having no account at all. Having a well conducted active current account would be better still. Not having an account would make a decline decision significantly more likely.

splatt30

opinions4u - would Halifax not see the account with no activity and virtually no balance as odd ie no wages being paid etc etc?

I now use first direct as we have an offset mortgage product with them and their customer service is so much better I would never consider using this dormant account as my usual account again