To close credit cards....or not?!

guesswho2000

Close the Barclaycard, maybe utilise the Fluid card (you've already applied and got it, so it'd be a waste not to), maybe money transfer to current account to reduce the loan (many factors to consider, can you repay the card before the 0% runs out?).

Wouldn't bother BTing from any of the current 0% offers though - you've already paid the fee to transfer to those cards, so may as well make use.

Whatever you do, don't close the Santander Zero card (you mentioned that's what it was earlier in the thread?), as Chattychappy mentioned, nearly unbeatable if you plan on using a card abroad (or even going abroad - it's one of the cheapest ways to obtain currency). This is a great card and unavailable to new customers!

rubyinthesky

Wow, that's what the guy said on the phone, that people actually phone up and ask for the Santander Zero!! I didn't even know I had it! Thing is, we haven't been abroad for years (we had a caravan so it was all UK holidays) and have just been to France this summer. We may do it again this year, but I don't really understand the benefits of the Zero card - must look into that!

I'm hoping to pay off most, if not all, of the credit cards before B/T offers run out, but if not, will transfer again, as they should be small amounts. The worry was the £8k debt I had on the Barclaycard, as it wasn't likely that I was going to get that amount on an alternate new B/T offer and it was going to cost me £70 a month interest. Happy to carry on paying that one off on the loan, which is only £135 a month and about £30 interest (it's only 6.1%). That's okay for me until the other two cards are paid off then I'll go from there.

I was thinking close the Barclaycard too, as that one is 2.5% minimum payment, and the others 1%, but only thing putting me off was the large credit limit, which looked good that I'd been given such a high limit. All the others have only ever been around £3k.

guesswho2000

rubyinthesky wrote: »

Wow, that's what the guy said on the phone, that people actually phone up and ask for the Santander Zero!! I didn't even know I had it! Thing is, we haven't been abroad for years (we had a caravan so it was all UK holidays) and have just been to France this summer. We may do it again this year, but I don't really understand the benefits of the Zero card - must look into that!

Absolutely, fee free cash withdrawals and no foreign exchange fees on purchases, very few cards offer these benefits.

rubyinthesky wrote: »

I'm hoping to pay off most, if not all, of the credit cards before B/T offers run out, but if not, will transfer again, as they should be small amounts. The worry was the £8k debt I had on the Barclaycard, as it wasn't likely that I was going to get that amount on an alternate new B/T offer and it was going to cost me £70 a month interest. Happy to carry on paying that one off on the loan, which is only £135 a month and about £30 interest (it's only 6.1%). That's okay for me until the other two cards are paid off then I'll go from there.

6.1% interest rate on the loan is very good, there's little point paying it off with a 0% transfer unless the you'd pay it off in a period which made the fee less than the interest you'd pay over the same time (if that makes sense?). As the loan is fixed rate and payment until it fully clears, the cards are more important, 0% now encourages minimum payments, which equals expensive interest charges later, so concentrate on that. Much as it pains me to say it, in these circumstances (and as it's a good offer) I'd close the Fluid card without using it, as it's just temptation sitting there!

rubyinthesky wrote: »

I was thinking close the Barclaycard too, as that one is 2.5% minimum payment, and the others 1%, but only thing putting me off was the large credit limit, which looked good that I'd been given such a high limit. All the others have only ever been around £3k.

Closing it with a high limit will look good on your credit report, as opposed to them reducing it and then you close it, if that ever happened. If you aren't going to use it, then close it, but I will say that if you aren't sure you'll clear the other 0% cards by the time they're up, Barclaycard are very good for repeat BT offers, 6.9% for life of balance (similar to your current loan) or 0% for 9-12 months are offers I frequently receive on mine.

rubyinthesky

Brilliant reply - thank you!! I must say, I've never seen this 6.9% for life offer on my Barclaycard, just 0% for 12 months, although mine is the Barclaycard Platinum, which I think I read they don't do the balance for life transfer. If this is the case, I'll definitely close this one, as I'll definitely NEVER need that level of credit anyway!