Retaining Sub Prime Card?

popomatic

I have just balance transferred my 2k balance from a credit card with my bank, onto a new Barclaycard Platinum which had an offer whereby I could have 20 months interest free on this. However, I will still have to pay interest on any purchases (after 3 months), so am planning on keeping my bank credit card too, and just using that for any purchases, and hopefully clearing the full balance every month.

I also still have a sub prime card with Vanquis that now has a zero balance. Is there any point in keeping this as well if I am not going to use it? Will it help/hinder my credit rating now it has effectively served it's purpose?

Anthorn

If Vanquis apply the T&Cs related to minimum interest and they don't always do that keeping a nil balance could cost you £1 per month. Eventually they will reduce your limit which might not look good on your credit report.

Whether you keep it depends on whether you have enough accounts to maintain a good credit report. If you do and you don't need the card get rid of it. If you intend to keep it a small purchase every month will keep it active.

popomatic

Well, I will have the new CC, my Bank CC and I have a loan with my bank too. There's not much else current on my credit file, other than an bank account which is in credit, and not O/D.

Is that enough or not? My credit score fluctuates between 2/5 and 3/5 on Noddle, although I was previously told this figure was not the be all and end all.

Atidi

popomatic wrote: »

I have just balance transferred my 2k balance from a credit card with my bank, onto a new Barclaycard Platinum which had an offer whereby I could have 20 months interest free on this. However, I will still have to pay interest on any purchases (after 3 months), so am planning on keeping my bank credit card too, and just using that for any purchases, and hopefully clearing the full balance every month.

I also still have a sub prime card with Vanquis that now has a zero balance. Is there any point in keeping this as well if I am not going to use it? Will it help/hinder my credit rating now it has effectively served it's purpose?

If you are struggling to repay the current balance of your card IN FULL at the end of every month, then I suggest you close any extra cards as that will only encourage you to spend still more money you haven't got.

Atidi

OMG, you've got a bank loan too! :eek:

planteria

i would retain a subprime card until a non-subprime card has been obtained, and then close it straight away.

Anthorn

Atidi wrote: »

If you are struggling to repay the current balance of your card IN FULL at the end of every month, then I suggest you close any extra cards as that will only encourage you to spend still more money you haven't got.

Why would the credit card need to be paid off in full every month? Surely we have credit cards so we can obtain credit. Currently I bought an espresso machine with my credit card and am paying it off over 3 months.

The only reason why we would pay it off every month is when we are using the card solely to rebuild credit and avoid further debt because we are already in debt.

Ok we pay interest but that's the price we pay for credit.

fozmcfc

Anthorn wrote: »

Why would the credit card need to be paid off in full every month? Surely we have credit cards so we can obtain credit. Currently I bought an espresso machine with my credit card and am paying it off over 3 months.

The only reason why we would pay it off every month is when we are using the card solely to rebuild credit and avoid further debt because we are already in debt.

Ok we pay interest but that's the price we pay for credit.

You've done what I used to do, bought an item, which in no shape or form, could be considered an essential purchase and chosen to pay interest on top of the cost of the machine. Why? simply save up for it for 3 months and pay no interest.

There are many people who always pay off their credit card in full each month, me included.

Why use a credit card, when you are going to pay it off in full anyway? Well several reasons.

1/ They offer purchase protection that cash and in some cases a debit card doesn't.

2/ Some offer cashback.

3/ Some offer money vouchers.

4/ Some have introductory offers such as cases of wine as we've seen recently.

In addition if you know your statement date, you can get all of the above and still have upto 50 days or so to pay them offer and receive no interest. I.E statement produced on 10th January, so buy on the 11th January, purchase doesn't show until 10th February and you have until the 28th February to pay it off with no interest.

In the past, I have always paid interest, until I got wise in 2009 and decided, enough was enough, I was only going to make purchases, I could afford and not pay interest.

If I need to make a large purchase on a credit card, then I apply for a 0% card which has xx amount of months to pay the balance off, until interest is charged.