When to apply for new Credit Card..?

GoldenShadow

Hi

I have a student credit card with HSBC (compulsory £500 only limit). Account is turning to a grad one but it seems nothing happens with that credit card ie. I think I keep it. Not that I want it for what it offers.

I also have a £1200 Nationwide CC (6 months interest free expired in Jan).

Start my grad job in Sept and will have a salary of £22,444. Currently only earn 6K ish part time.

I don't really use my Nationwide one. I bank with HSBC so out of sheer convenience use that, but the £500 is a bit tight in terms of monthly spends...I don't 'need' a credit card, I pay it off on payday and its mostly for things like vet bills whilst I wait for the insurance to pay out (emergency vets make you pay up front).

So,

1) Should I just wait until Sept to apply for a new CC as I will have access to better ones with a better salary?

2) Should I cancel one of the ones I currently have? I don't know if I can cancel the HSBC one yet...Someone in branch once told me I couldn't whilst I had a student a/c as it was compulsory...

3) Is there any benefit having a credit card with your own bank, or not really, except convenience?

TIA

The_Boss

1) Not September - lenders will want to see some stability in your job. I'd apply in March '15 and use your current cards in the meantime. You'll most likely keep the HSBC card. Given your current salary you may not be accepted for another at the moment, although presume that's not much of an inconvenience.

2) Keep your current cards - £1.2k limit on one and assume similar or less on the other, so existing won't worry lenders too much when assessing your next application with a salary of £23kish if you have nothing on them

3) Not especially - in fact, it can be a hindrance if you can't pay off your debts for a few months due to not working - they can take funds automatically from your current account to pay the credit debt.

CLAPTON

keep both cards but start to use both regularly for 'normal things' (petrol, food whatever)
but pay in full each month
this will enhance you credit record and mean you pay no interest.

You can set up a DD to pay each in full so there is no 'inconvenience' about using one you don't bank with.



wait until you have been employed for 6 months or more and try for a cc with cashback or discounts that suit you.

GoldenShadow

Thanks both that's really helpful. Hadn't considered the need to wait til March ish. Will do so

brfc1995

CLAPTON wrote: »

keep both cards but start to use both regularly for 'normal things' (petrol, food whatever)
but pay in full each month
this will enhance you credit record and mean you pay no interest.

You can set up a DD to pay each in full so there is no 'inconvenience' about using one you don't bank with.



wait until you have been employed for 6 months or more and try for a cc with cashback or discounts that suit you.

Exactly, spot on.

countingstars

How about asking HSBC to increase your limit once you start your job with higher pay?

Also, to echo everyone else above, keep both cards and use them regularly to build your score. That way, when you DO finally apply for another card, you should have a decent history.

Stereo

GoldenShadow wrote: »

3) Is there any benefit having a credit card with your own bank, or not really, except convenience?

TIA

As you bank with them, you build up a relationship which can mean that it could be easier for you to be accepted for products with them (credit cards, loans etc). However unless you can get something worthwhile (like cashback or rewards) there's probably no benefit.