Cancel or keep cards for better chance of successful application

HackneyCarriageSaver

Hi,

I'm about to apply for a new 0% credit card and need some advise.

I have 3 credit cards at the minute and I pay off the entire balance in full every month on each one .

I have a Barclaycard, an Amex and a Natwest 0% for 15month card. The Natwest card has now come to the end of it's promotional 0% period and I have paid off the entire balance in full.

I want to apply for a new 0% card from another provider but should I cancel the Natwest one first? Will this aid, hinder or have no effect on my application for a new card at another supplier?

I have a good credit score of 457.

What should I do?

Thanks.

balmk

HelloJust to clarify -You have 3 credit cards which you always pay off in full every month.Your reason for getting a new card is becuase your NatWest promotional rate is ending.If you pay off your full balance each month, surely it doesn't matter what the interest rate is as you wouldn't be paying any interest?

YorkshireBoy

HackneyCarriageSaver wrote: »

I have a good credit score of 457.

What should I do?

Firstly, you should ignore that score made up number...unless, and until, the people that gave it you start giving credit themselves!

Secondly, you should be aware that when deciding whether to accept you, and also deciding what limit to offer, lenders will take into account your existing facilities, ie your current credit limits across all cards and overdrafts.

They use 3 ratios:

Available credit to income (50-100% is bad)
Used credit to income (more than 50% is bad)
Used credit to available credit (more than 60-70% is bad)

So what do you think you should do?


* Disclaimer: The percentage figures are my own opinion, not an industry standard/guideline.

HackneyCarriageSaver

Thanks for both the quick replies.

@Balmk...I want to get another 0% card so I can spread big purchases over a longer period. I will only be paying off the minimum a month on that card until the promotional offers ends where I'll pay off the balance in full. I was just stating that to show I have no debts on existing cards.

@Yorkshireboy...great information, thanks. In light of that I'll probably cancel my Natwest card before applying for another card due to another additional card would give me credit that will go over 50% of available credit to my income.

Thanks