Will credit card companies offer a lower apr?

kindofagilr

I had 5 credit cards, weve paid off 4 of them, asda (Santander), virgin (MBNA), lloyds and capital one

We have M&S left (with £2700 left on it)

The total credit limit on all 5 cards is £16,000

Now I am interested in the MBNA lifetime low balance APR to move the M&S one too (I wouldnt be able to get Barlcays as I dont earn 20k pa)

Would it be better to close down the 4 cards and then apply for MBNA

Or is it possible to call the 4 cards up and ask if they will offer a low apr balance transfer?

If the second option isnt possible and I have to apply fresh to MBNA, how long to I have to wait to apply once Ive closed an account I have with them already? or can I not apply to them at all?

The APR on M&S is 15.9% (If I remember right)

Thanks

Any

You can hold more then 1 MBNA issued card...
However as you already have limits of 16k and don't earn 20k, you already have lots of available credit in comparison to your income..

When did you pay off your Virgin card? They have constantly some special offer on, such as LOB transfers. Did you check online whether there isn't any offer waiting for you?

If not, I would call them up to cancel and they might offer it to you. If not, cancel the card and maybe some other one (cannot see any good repeat offers companies on either of the other ones - but I have no experience with Capital one) to get rid off some available credit and then couple months later apply for the MBNA LOB card (NOT Virgin - you should have at least 6 mths and with some companies even 12 mths gap before applying for new card with new customer offer for exactly the same card as you held before..)

kindofagilr

Soryy I merant to say if I am going to apply dfor the low balance one then I would close the other 4

Any

How does that change what I've said??

I would first close couple, to get rid off some of the available credit. But not all of them, as you don't want your debt vs available credit be too low. That would then show that you are using high % of your available credit.

I would:
First call Virgin for any special offers, if none close it.
Close another card or two (depending on the limits)

wait

Apply for MBNA

Cancel the rest of cards or which ever you want to cancel.

(I use my M&S for every day spending to earn points. £60 on it's way to me in vouchers as we speak...-but that is 6 mths worth..)

kindofagilr

It doesnt change anything, I thought I had missed that off my original post

I am a little confused by you saying close them?

Should I not ring them all and see if any of them will offer a lower lifetime balance on a BT? (as I already have credit limits on them more than I need) and then if none of them have a decent one close all 4 of them?

And then wait a few months and apply for the MBNA one?

Or is closing all 4 of them not a good idea? as then I wont have much credit available in my name?

Argh I am confused, sorry for all the questions lol

izools

Exactly.

That's exactly right - see if any of your zero balance cards can offer a repeat promotional rate and if not, close them all and wait three months for your credit files to update with the fact you no longer have that amount of credit available to you.

You can then try two cards - if what you want is a low rate for life -

The MBNA card you mention, and also the Barclaycard Simplicity which has a typical APR of 6.8%. Although you aren't quite earning #20K, there have been a few reports of applicants still getting the Barclaycard Platinum / Simplicity earning slightly less if the rest of your credit report and circumstances are above reproach.

You can always use the pre-application checker to see if you are likely to pass the credit check once your other cards have been closed for a few months... if it comes to that

Good luck! :beer:

kindofagilr

Thanks, I only earn 12k now as I am part time after having my baby

Ive spoke to virgin and they have no new offers for me, so need to close that one, I will close CP1 cos highly doubt they will have anything for me (It was the card I got to build my credit back up in 2004)

I'll ring asda and LLoyds to check as well

If I cant get a lifetime low balance, its not the end of the world, I am hoping to pay off M&S quickish, overtime is hopefully coming back on and I can make £400 a month doing 4 days overtime so that will help bash it down

Thanks for your help

izools

You are certainly on the right tracks to close all those accounts if your salary is 12K at present Might be worth reducing the limit on the M&S card if it is excessive just to be sure that doesn't get in the way of a future application.

Good luck with it all, and of course with Elliot

Any

I personally would not close all of them BEFORE you get the new card.

There are 2 ways at looking at current cards and limits...

1/you don't want too available credit in comparison to your annual salary

BUT

2/you don't want too low available credit limit in comparison to your existing credit card debt. Otherwise, your report will show that you are using lets say 90% of your available credit limit and that can indicate that you might be having spending issues.. Blind might see that that is not the case, but decisions are automated and you don't want to get refused just because "computer says no".

Noone actually knows how far this goes, how big is the impact or what the best % are.

So I would play it safe and keep one of the other cards open, if the M&S one with balance on it is not one with a massive limit..

And you need to ring the cards, yes - to cancel it. The best offers are available at the last stage of conversation - when you call to cancel you will get put through to retention team in a last attempt to keep you as a customer and those agents have the best deals available.

If they offer you nothing - then noone else will.

kindofagilr

Which ones would you close?

I have:

Virgin: balance £0.00 limit £2600
Asda: balance £0.00 limit £4000
Lloyds balance £0.00 limit £3000
Capital One balance £0.00 limit £1800

M&S has a balance of £2700 and a limit of £4800

Any

Probably Virgin, as you know they have nothing on offer for you and you will be applying for the MBNA soon and then Asda..