what to do with empty credit cards

dazrs

Well I'm in a position now where I gone from 3 credit cards, luckly 2 had 2 small amounts, but due to my ex stuffing up my credit i couldnt transfere them, but now I managed to get them on one, so only paying one off now. I have 2 credit cards I no longer wish to use I have already cut them up. I wanted to cancel them but apparently if you still got your credit card open, it ups your credit rating which I'm trying to do now. Personally I like to cancel them and risk any temptation but Im usually good with it.

jessie4109

Do you have any other active credit at the minute that gets reported to cra?

ilovelondontown

I don't have any advice on this one, but I've got a credit card that's open but not used and want to know the answer to this, so commenting to follow the thread.

The_Boss

ilovelondontown wrote: »

I don't have any advice on this one, but I've got a credit card that's open but not used and want to know the answer to this, so commenting to follow the thread.

What's your salary? How many credit accounts do you have? What are the balances/credit limits on your cards? Have you had any missed payments/defaults on your report?

ilovelondontown

The_Boss wrote: »

What's your salary? How many credit accounts do you have? What are the balances/credit limits on your cards? Have you had any missed payments/defaults on your report?

Feel like I've hijacked the threat, sorry dazrs! I've got 2 credit cards, one that's got a £5k limit on it but is empty and I've cut the card up, other one has a £3200 limit on it and currently has £2700 on it, which I'm paying down per month. Salary over £30k. Never defaulted.

The_Boss

ilovelondontown wrote: »

Feel like I've hijacked the threat, sorry dazrs! I've got 2 credit cards, one that's got a £5k limit on it but is empty and I've cut the card up, other one has a £3200 limit on it and currently has £2700 on it, which I'm paying down per month. Salary over £30k. Never defaulted.

It's ok. When they come back and answer the same questions we can help

Personally I'd keep both as you only have two. Two lots of reliable credit card payment data each month on your report is better than one. You are nowhere near your salary in available credit and although using a large amount of one card the other is empty. I'd also get a replacement for the cut-up card and spend a small amount on it each month and repay in full.

What is the interest rate on the £2700?

Assume you have a current account on your credit files but is there anything else such as mobile contract or mortgage?

ilovelondontown

Thanks "Boss"!

Interesting point, maybe I should use the other card for a small payment every month then? How small are we talking?

The interest on the £2700 is about 16% which is something I want to switch but I only took the card out in Jan so not sure I'd get accepted for another balance tranfer 0% card would I?

I moved my current account from the halifax to another bank but still have the current account at the halifax, should I shut all these down? I don't have a current mobile contract ( I use my work phone saves ££ on line rental and insurance)

I've also got 2 lines of interest free credit- 1) for sofa which is due to be paid off next year £39 pm and 2) A laptop £20 pm.

I've never defaulted on any payments which I owe money on.

The_Boss

Ok great - so you have a fair bit of data that points to a responsible borrower. I'd definitely apply for a new 0% card and transfer. It has been 4 months since your last credit search.

As for closing the other current account, it is up to you. But lenders like to see that applicants have been with their bank for a long time. Maybe keep the Halifax til you have had the new one for at least a year.

ilovelondontown

The_Boss wrote: »

Ok great - so you have a fair bit of data that points to a responsible borrower. I'd definitely apply for a new 0% card and transfer. It has been 4 months since your last credit search.

As for closing the other current account, it is up to you. But lenders like to see that applicants have been with their bank for a long time. Maybe keep the Halifax til you have had the new one for at least a year.

Thanks for the advice, reading it back it sounds like I've got a lot of pockets of credit in places but they are all staggered and all due to clear in the next 12 months, in which time I don't intend to take out any other credit.

I'll keep the halifax credit card open then and see if I can get another 0% card to transfer to. Any suggestions as to what might be a good one?

The_Boss

MBNA, NatWest and Barclaycard have good 0% offers at the moment so are worth checking out..or you could look to apply with the guys you have your new current account with.

Just check which is best for you before applying.

Ashingtonian

I have one thats empty but its good to keep for an emergency.....much better than a pay day loan or high interest overdraft facility.