Close credit accounts?

ackonic

Hi Everyone,


I am luck to have had the chance to consolidate my debt onto 2 credit cards, one at 6% interest and the other at 0% interest for 12 months, however I would like a bit of advise regarding the credit accounts that I have cleared, there are 2 online catalogues (choice with a credit limit of £10,00 and Very with a credit limit of £2,000) Should I leave them as available credit and will this help my credit rating, or should I close them completely?


Thanks in advance

stalkah

Subscribed to this, as my wife has about £14k available to her from Littlewoods, Next and Very. Luckily with nothing on any of them but wondering how this will effect us when we apply for a mortgage in a year or so

The_Boss

ackonic wrote: »

Hi Everyone,


I am luck to have had the chance to consolidate my debt onto 2 credit cards, one at 6% interest and the other at 0% interest for 12 months, however I would like a bit of advise regarding the credit accounts that I have cleared, there are 2 online catalogues (choice with a credit limit of £10,00 and Very with a credit limit of £2,000) Should I leave them as available credit and will this help my credit rating, or should I close them completely?


Thanks in advance

What are your credit limits and balances on the two new cards? What's your salary? And do you have any other credit agreements?

The_Boss

stalkah wrote: »

Subscribed to this, as my wife has about £14k available to her from Littlewoods, Next and Very. Luckily with nothing on any of them but wondering how this will effect us when we apply for a mortgage in a year or so

Depends on several things such as what other credit cards she has, her total credit limits, used credit (fortunately sounds like this isn't an issue) and her salary. What are the credit limit breakdowns of the three cards?

stalkah

The_Boss wrote: »

Depends on several things such as what other credit cards she has, her total credit limits, used credit (fortunately sounds like this isn't an issue) and her salary. What are the credit limit breakdowns of the three cards?

Thanks for replying (Sorry ack for hijacking your thread)

She has no credit cards, and no outstanding debt of any kind, she didn't work for 6 years as was looking after our children. She went back to work in August part time earning about £8.5k a year.

Not sure of the exact breakdowns but I think it's about 2k with Next 5k Littlewoods and 7k Very.


I think they have got this high because if we'd need anything we put it on one of those accounts for the interest free period and never missed a payment and most of the time paid off well in advance of the interest free period ending.

The_Boss

stalkah wrote: »

Thanks for replying (Sorry ack for hijacking your thread)

She has no credit cards, and no outstanding debt of any kind, she didn't work for 6 years as was looking after our children. She went back to work in August part time earning about £8.5k a year.

Not sure of the exact breakdowns but I think it's about 2k with Next 5k Littlewoods and 7k Very.


I think they have got this high because if we'd need anything we put it on one of those accounts for the interest free period and never missed a payment and most of the time paid off well in advance of the interest free period ending.

In my opinion, keep the Next card and one of the other two, but bring the credit limit down to 3k. Always useful to have two cards (i.e. one and a backup). If you go on holidays either of you could apply for the Post Office or Halifax Clarity card for 0% on foreign transactions and then close one of those store cards if successful.

ackonic

The_Boss wrote: »

What are your credit limits and balances on the two new cards? What's your salary? And do you have any other credit agreements?

Hi,


I have a 6% on one card with a balance of £6,000 and 0% for 12 months on a balance of £3,000 - salary is £27,000 per year - also have car on finance of £12,000 and £6,000 HSBC fixed rate loan.


Thanks