Having a credit card with your bank.

willLeeds

Hi Guys,

After a number of years of re-building my credit worthiness i'm finally making progress. I have to say i have learned the hard way and although the past few years have been painful i've definitely learned my lesson and am much more financially competent.

Anyway, ive currently got three credit cards. All with a balance, but non substantial. Capital One (£1000 Limit), Aqua (£1300 Limit), Barclay Card Initial (£800) limit.

Ive been considering cancelling both Capital One and Aqua also maybe my Barclay Card. I just want one credit card, a reasonable rate of interest, with a (Normal bank or card, not a credit builder). That i can over time build up a bigger and bigger credit limit. A couple of larger purchases, a little every day spending, i have no plans as such, more back up and nice to have if needed.

Now ive talked to two friends both have excellent credit ratings and one credit card each. When ive spoke to them, both have cards with the banks they bank with (and reasonable hight limits). Due to my poor rating, that wasn't an option for me.

I currently bank with Lloyds, would i be best to apply to Lloyds for a card, maybe a balance transfer and stick with them? Or just stick with Lloyds for banking and Barclays for my credit card?

The logic being if Lloyds see my wages each month, every day spending, savings, they have a better idea of my credit worthiness? or does just spending on my barclaycard and paying on time each month mean exactly the same?

Any advice would be great.

planteria

i would get the card that best suits your needs, that is with a mainstream provider. if that is Lloyds, great. if not...great too.

i bank with HSBC and Barclays (primarily) and by main spending cards are Amex and Barclaycard. but the reason for the Barclaycard is the cashback terms, not the fact that i bank with them.

CKhalvashi

As above.

I bank with HSBC, and whilst I have a Premier Credit for the additional warranty, and BA Amex as I fly frequently with BA.

It's nothing to do with banking with HSBC.

CK

CLAPTON

willLeeds wrote: »

Hi Guys,

After a number of years of re-building my credit worthiness i'm finally making progress. I have to say i have learned the hard way and although the past few years have been painful i've definitely learned my lesson and am much more financially competent.

Anyway, ive currently got three credit cards. All with a balance, but non substantial. Capital One (£1000 Limit), Aqua (£1300 Limit), Barclay Card Initial (£800) limit.

Ive been considering cancelling both Capital One and Aqua also maybe my Barclay Card. I just want one credit card, a reasonable rate of interest, with a (Normal bank or card, not a credit builder). That i can over time build up a bigger and bigger credit limit. A couple of larger purchases, a little every day spending, i have no plans as such, more back up and nice to have if needed.

Now ive talked to two friends both have excellent credit ratings and one credit card each. When ive spoke to them, both have cards with the banks they bank with (and reasonable hight limits). Due to my poor rating, that wasn't an option for me.

I currently bank with Lloyds, would i be best to apply to Lloyds for a card, maybe a balance transfer and stick with them? Or just stick with Lloyds for banking and Barclays for my credit card?

The logic being if Lloyds see my wages each month, every day spending, savings, they have a better idea of my credit worthiness? or does just spending on my barclaycard and paying on time each month mean exactly the same?

Any advice would be great.

After your unspecified previous difficulties why do you need a card with a reasonable rate of interest?

willLeeds

I don't need one, would be nice to have.

The difficulties were when i was 18, brand new to credit and to be honest a little bit stupid. Im now 26 and as i get hold have more responsibilities.

Having the back up of a credit card and the ability to pay larger purchases over a period of time.

planteria

the thing to do is be in a position where the card you spend on does not charge you any interest at all, as you clear it in full every month.

if you have an outstanding balance, try to move it to a different card, with a 0% balance transfer deal.

again, look at the wider market. you May get a better limit from an organisation that is familiar with your finances. but it's not easy to predict.

grumbler

willLeeds wrote: »

After a number of years of re-building my credit worthiness i'm finally making progress. I have to say i have learned the hard way and although the past few years have been painful i've definitely learned my lesson and am much more financially competent.

Anyway, ive currently got three credit cards. All with a balance, but non substantial. Capital One (£1000 Limit), Aqua (£1300 Limit), Barclay Card Initial (£800) limit.

I wouldn't say that carrying £3K+ balance on high-interest CCs is even close to being 'financially competent'.
For just re-building your credit worthiness you don't need 3 cards and don't have to pay a lot of interest on the balances.

planteria

i would agree.

i would close the Aqua card and keep one of the other 2 alongside a new card...which gives you cashback/points on your spending.

willLeeds

grumbler wrote: »

I wouldn't say that carrying £3K+ balance on high-interest CCs is even close to being 'financially competent'.
For just re-building your credit worthiness you don't need 3 cards and don't have to pay a lot of interest on the balances.

Sorry those are the limits not the balances, the balances are just over £1000 combined.

There was a semi logical (although might not be fully correct) reason behind three.

1. Capital One - The first card i ever had, its been running for over two years now all paid on time. Gone from £200, to £500, to £1000. The reason i kept this was that i had read having a card over a long period and being able to show you can manage your finances was a good thing. Hence the reason i didn't cancel when i got my Aqua Card.

2. I applied for a Aqua Card as the card with Capital One the raise from £200 was pittyfull. I felt like it was never going to increase. I didn't see any problem with having two cards, two green marks a month rather than one.

3. I wanted to move towards a main stream lender, so applied for a Barclay Card. Ive now had this 6 months... and at the point ive wrote this post. About just sticking with Barclays or Applying for a lloyds.

CLAPTON

willLeeds wrote: »

I don't need one, would be nice to have.

The difficulties were when i was 18, brand new to credit and to be honest a little bit stupid. Im now 26 and as i get hold have more responsibilities.

Having the back up of a credit card and the ability to pay larger purchases over a period of time.

many of us have 4 or more CCs but they are all paid in full each month without fail

why do you need the ability to pay over a period of time ; save up over a period of time instead

by all means get a better card but pay in full each month

planteria

i had 24 credit cards at one stage, went down to 5, and now have 8. never pay any interest.

if you can get a new card with benefits that you want, do it. otherwise, just keep the Barclaycard and the CapOne and continue to 'spend & repay'.