Barclaycard - Get rid or keep?

chrismcfall

Hey all! I've got an Initial with a limit of £260, issued 10/10. It'll be clear this month or next, (debating doing it 50/50 over the next two months or just doing it all this month, will have to see my estimated interest etc)
I'm only 18 and this was my first form of credit, Since then I've got a phone contract in January.
I'm debating cancelling the barclaycard, does cancelling a card look bad on your record at all? Or should I keep using it with a small amount each month?

Tixy

If its still your only credit card I would hang on to it and use it sometimes but pay in full so you don't pay interest.
A credit card account is viewed quite differently to a phone contract by a potential lender - if you keep it and use if occasionally it shows you can be responsible with a revolving credit account.

chrismcfall

Cheers. I know I'm only pretty young and haven't really had the card for a while, but do they ever drop the APR on their cards?

climbgirl

chrismcfall wrote: »

but do they ever drop the APR on their cards?

Sometimes, but as Tixy recommends if you use the card for small purchases each month and pay them off in full, the APR is irrelevant.

I would definitely keep the card open and use it a few times each month, paying it off in full. This will build up a good credit history of you using a credit facility responsibly.

izools

Certainly do keep the card - you aren't going to get any better with just five months credit history and closing an account so soon after opening it looks bad - it's a sign of instability and / or a sign of making frivolous decisions with regards to credit - something no prospective creditor will want to see.

As long as you run the account well under it's limit, pay on time every time - as others suggest, in full, to avoid paying interest - they will increase your limit in time and consider you for APR reductions.

I got my first Barclaycard (Initial) when I was 18 and after two years it had a #2,000.00 limit and 9.9% APR