Declined Credit Card

BigAndy_79

Hi folks.

I was turned down by Tesco for a credit card about 6 months ago. They stated that if I left it for a months and re-applied they should be able to do something for me as my credit score wasn't high enough at that time, they said.

I have since taken out a Vanquis credit card and am paying that off in full each month to help boost my credit score a little.

My question is, how long should I continue with this Vanquis card ? I have paid off two balances in full so far, and the 3rd is due to come out at the end of this month. I was thinking having it for another couple of months and then close the thing down.

Any advice or suggestions appreciated.

cifpower

I would keep the Vanquis card for at least a year. It is not costing you anything if you pay in full each month (minimum finance charge excluded )

lisyloo

Do you have any other long term contracts?
Although we can't be specific about the rules aplpied, I have heard that lenders like to see at least some evidence long term relationships and stability.
Is there any negative effect of just keeping the card open?
Do you have to pay a dormancy fee?
If not I'd keep it open.

BigAndy_79

Hi guys.

Thanks for the feedback. The only negative effect would be that other lenders may see me as having sufficient credit and either not choose to lend, or give me a lower limit than I might wish to have.

I have just been approved for a mortgage and in order to buy myself a new tv, bed and the likes, I would like to have a card that would offer an interest-free period, a la Halifax or Tesco credit card.

That bit about a lender potentially liking to see a long term relationship seems to make sense. It may be better just doing what I am doing for another year or so, in that case. I would say it would help boost my credit score nicely if I am paying off in full each month for that period of time.