Keeping old cards

andy1988

Hi guys,

I realise this is a popular topic and I've searched the forum for about an hour trying to find out what I want to know but strangely I can't find anything :eek:

Basically I have 2 credit cards and recently got approved for a third. I've cleared the balance on the two existing cards via balance transfer to the new card but I'm not sure what I should do with them.

One is a Tesco card that I've only had for 12 months (a stoozing card) hence the balance transfer (BT), the other is a Halifax that I've had for many years and have been constantly offered limit increases and rate reductions (i cleared this via BT to the new card also).

I want to cancel one of the existing cards as I'd have nearly £13k in available credit otherwise (including an overdraft).

My dilema is Tesco offer clubcard points (1 for every £4 spent) but I've built up a good rep with Halifax and their customer service seems good...which to choose? Is loyalty truly worthless? As I understand it if I cancel and then return to Halifax in 12 months time they will recognise I was a good customer in the past and continue the good relationship, but anyone with greater experience will know better.

Hope that makes sense...in short do I cancel the Halifax or the Tesco, or shouldn't I worry about having too much credit to my name as long as I'm not using it and always pay on time?

Thanks,
Andy

lisyloo

What is relative here is your income.
If you income if £13K then that's a lot of available credit.
It't it's £26K then it's quit acceptable, if you earn £52K then you have nothing at all to worry about.
So really it is entirely relative to your income.

andy1988

Hi,

Thanks for your reply, that's what I gathered from the forums, but what confused me is someone could easily state a £5k monthly income to the credit card issuer when they only earn £1k, besides this being in breach of the T&C's they would still be accepted for a very high level of finance, are there other ways the card companies check your income?

I don't think I need to worry about the 3 cards then, but to keep things tidy I would prefer to cancel one of them, after all the less credit I have available the higher limit I'm likely to get on a 0% card that I apply for in the future. Any advice on whether loyalty is worth losing the club card points? Probably worth £2.50 a month to me, so not a great deal but it's the only financial differentiator (ARP isn't relevant).

Thanks,
Andy

sscott5581

My partner had a Halifax Credit Card which she used for BT. She cancelled and about six months later she is now guaranteed a card - it shows within her online banking.

Stevenn

lisyloo

are there other ways the card companies check your income?

Yes they can.
You are right people can lie, if they get found out they'd be in big trouble and find it hard to get financial products and even a job in future.
It could trigger investigations by the Inland Revenue etc. so it's taken fairly seriously.

after all the less credit I have available the higher limit I'm likely to get on a 0% card that I apply for in the future

Not necessarily.
Each lender has their own rules and if you aren't anywhere near a limit it will make no difference.
Showing you can handle credit and having history is a good thing, as is havng long running accounts as this shows stability.

So you have to weigh up - available credit history, being maxxed out (if you have less available), credit history and stability.

Sorry if that's confusing but there is nothing black and white here.
Persomally if the cards gave me a benefit whether financial or not then I'd keep them.
I only close cards when they give me no benefit at all.

andy1988

Thanks, I am truthful with the credit card companies so shouldn't have anything to worry about, being self employed I have no set income but make sure I understate to be safe.

Thanks again,
Andy