Close some accounts?

Vincecasso

Hi All, just looking a bit of advice. Years ago when I was foolish, I applied for a number of lines of credit, everything I applied for, I was able to get, instead of closing an old credit card, when I received a new one, I left them open and spent on them. After a while and due to personal reasons, I ended up defaulting on all my accounts and trashing my credit score. I eventfully managed to pay back all my debt, and only kept one bank account open for a number of years. I then went to my bank asking for a credit card and they gave me one, I was kinda in shock, but this gave me hope, I could try and rebuild my credit history, as someday I would be wanting a mortgage. I have since applied for Aqua £1500 limit, Vanquis £1000 limit both to help build up a history and my current RBS card limit is £1450, I also got a Argos card £300 limit.

My financial situation is improving and I have a little more disposal income, so I have use that to pay off my cards as much as possible every month. I then decided to try my luck and applied for a Barclaycard with a 0% balance transfer. At the end of the online application it informed me that they couldn’t make a decision and would get in touch in 5 days. However the following evening, I received a text message to say my card is on its way. I have no idea what my limit is. I plan to transfer my small balance from Vanquis and Aqua which is only £500 together, plus a large sum of my RBS card. This will enable me to pay the balance off faster, as I plan to pay off as much as possible every month.

My question is, my Aqua and Vanquis accounts are less than a year old, and so should I keep them open or close them? What affect will this have on my credit score? I certainly have learned my lesson from before I don’t plan to spend a single penny on them, but I’m sure it also looks bad that I have 4 credit cards and a store card active.

Drp8713

Vincecasso wrote: »

I plan to transfer my small balance from Vanquis and Aqua which is only £500 together, plus a large sum of my RBS card.

If you are carrying balances on high interest rate cards like Vanquis and Aqua then I don't think your main concern should be how you look to lenders.


Your main concern should be reducing your debt down to £0 and learning to live without credit.

Vincecasso

Your main concern should be reducing your debt down to £0 and learning to live without credit.[/QUOTE]

I know I’m not a Lenders dream, but I think I’m heading in the right direction, this is the first 0% card I’ve had in years, and as its interest free, I should have it paid off in a 6 months. So you’re saying I shouldn’t be worried about closing these subprime cards, as my credit score isn’t so great anyway?

thebritishbloke

Vincecasso wrote: »

I know I’m not a Lenders dream, but I think I’m heading in the right direction, this is the first 0% card I’ve had in years, and as its interest free, I should have it paid off in a 6 months. So you’re saying I shouldn’t be worried about closing these subprime cards, as my credit score isn’t so great anyway?

I'd say pay off Vanquis and Aqua or move them across to 0%, and close the accounts down. You don't need 4 credit cards to try and improve your report, you only need one, maybe 2. I'd close the Argos Card down too, it's just going to influence you to spend more money, that you can't afford.