Credit File -- applying for new Credit Card

fluffy123

Bit miffed to hear that Santander are putting up their overdraft charges by double the amount from March....it just seems a greater hurdle to battle every month but that's their decision.

Debating whether to invest in a virgin money credit card to pay off my overdraft before the big charges hit in as they offer 0% for 16 months which it'll be easily paid within that time (other than a 4% fee). As my overdraft is only £1400, that stands at around £56 to pay in fees over 16 months.

However, I already have two credit cards (one active and I use regularly and pay off every month and one which I used, but no longer do)....worried about how it might affect my credit file.

How is it better to look on my credit file? To have three credit cards to show I'm trustworthy or does that look desperate....therefore, would I be better with just the one or two? Therefore, I could close one of my credit cards (the one I never use and use the possibly new virgin money one....)

I hope this makes sense? :I

Tixy

Are either of your existing cards also issued by Virgin? if they are that could influence whether acceptance for a new card.

Aside from that just having 2 cards shouldn't be a reason for a decline, it sounds like you are using them responsibly.

Some lenders consider using your overdraft every month as a negative but if the rest of your file is good then that alone shouldn't be a reason for a decline.

If you have a high limit on the one you no longer use and don't expect to use it again then you could close it down, but it probably won't show as updated on your credit file for a month or so.
Presumably empty card isn't one that offers money transfers? if it was you could see if they will do a 0% deal instead of applying for a new card.

fluffy123

Hi there, neither of my existing cards are Virgin. One is HSBC and the other Santander (HSBC has a 7k limit on it and currently stands at around £100 on it which will be paid off at months end, Santander has a 3k limit which hasn't been touched for 6 months now and is unlikely to be).

It's all part of my year of cleaning everything finance related up really and part of that is clearing up my credit file to look as good as possible really. Ideally I'd leave everything as it is until all my debt is paid off in 12 months time but now these charges are going up, it looks like I'm going to have to act....