Credit card advice

garion1987

Hi everyone, I hope you are able to help:

I currently have about £4900 on one credit card (the Tesco Card) and £450 on another card (the Natwest Card.)

The interest free period on the Tesco card is ending in April 2014, and so I am preparing to do a balance transfer. I hope to pay off my Tesco card in full at the end of February.

I am also approaching the end of my mobile phone contract (mid-February) and am thinking of buying a new phone.

In the last 12 months, I have only made one application for credit (the Natwest card), and I have an excellent credit score when I have checked my credit rating for free.


I think I should apply for a new credit card now and transfer the full balance of my Natwest card immediately, and still aim to pay my Tesco card off at the end of February when I receive my February pay.

My only concern is that I want to maximise the chances of my being offered as large a credit limit as possible when I apply for a new card (when I made the Natwest card application in 2013, I was granted £5250). However, if when I make the application I still have an outstanding credit card (albeit with only £450 on it), would this drag down the amount of credit I would likely be granted for a new credit card application?

If I do wait until the end of February, pay off the Tesco credit card as planned in full and then cancel it, before applying for a new card to transfer the balance from my Natwest card, would I be in a much stronger position to receive a higher credit limit? How long does it take for cancelled credit cards to be removed from your credit score and therefore not impact on a new application?

If anyone could help, I would be very grateful, as everyone on this board appears to be very knowledgeable, certainly compared with me!

Many thanks.

garion1987

I should also add that the reason I mentioned about my mobile phone contract ending, is that presumably I should wait until I have successfully applied for a new card and transferred my balance, before I try to apply for another long-term, 24 month phone contract, where a search will be made of my credit history/score?

CherlokHomes

In the last 12 months, I have only made one application for credit (the Natwest card), and I have an excellent credit score when I have checked my credit rating for free.

I'm afraid Experian are not the ones lending you money which makes their score worthless, bankrupts get excellent scores off these lot.

I take it you haven't missed any payments or been late etc and your credit history is in good health and if so can't see why you can't apply for another card.

garion1987

Thanks very much for your reply.

Yes, I am up to date with all payments and my credit history is good.

Are you able to help with my questions about whether I should wait to apply for a new card until I have paid my Tesco card off and then cancelled it, or should I just do so now? How long does it take cancelled credit cards to not affect any new application I make?

CherlokHomes

garion1987 wrote: »

Thanks very much for your reply.

Yes, I am up to date with all payments and my credit history is good.

Are you able to help with my questions about whether I should wait to apply for a new card until I have paid my Tesco card off and then cancelled it, or should I just do so now? How long does it take cancelled credit cards to not affect any new application I make?

Fill this in and come back to tell us what APR and limit you got and don't worry they will only do a soft search on your credit file.
Then can tell you whether you'll likely be accepted
http://www.nationwide.co.uk/creditcard/balance_transfer_offer/apply.htm

Tixy

whether I should wait to apply for a new card until I have paid my Tesco card off and then cancelled it, or should I just do so now? How long does it take cancelled credit cards to not affect any new application I make?

I'd make the application now. I doubt £450 debt on another card will have a big impact on whether you are accepted or what limit you are given.
Anecdotally MBNA cards and barclaycards tend to give good starting credit limits.

Once a card is paid off and then formally closed it could take up to a couple of months for that to be updated on your credit file and show as settled.

garion1987

Many thanks for all of your advice, I am going to go ahead and make the application now.

CherlokHomes

garion1987 wrote: »

Many thanks for all of your advice, I am going to go ahead and make the application now.

Don't forget to come back with your CL and APR before you go ahead with the full application.