Now credit rating is good, What to do with high APR cards from past?

KT-89

Hi,


4 Years ago I got my first credit card (Capital One high APR one) with £200 limit when i had a bad credit rating.


2 years late I got a Vanquish also high APR card with a £3000 limit.


Now my credit history is good and I have a Barclay Card Platinum so I no longer need those cards.


Both cards have 0 Balance now, Would it be best to close them down or leave them open because of the credit history attached to them?


Thanks!

The_Boss

It depends really.

What's your current salary?
What do you mean by "bad credit rating" in the past? Since credit ratings do not exist, I mean in terms of missed payments, defaults etc.
It should be safe to close one though - in which case I'd close Capital One personally. Do you need access to credit in the near future? I.e. was your question related to wanting to apply for more?

System

Unless your Capital One has something going for it like cash back or free overseas usage, I would suggest dumping it.

You could keep the Vanquis / Vanquish until you've established yourself with Barclaycard (6 - 12 months) and then dump them too.

pheonix254

It's credit history, not a no claims bonus. It's attached to you, not the cards. You can settle (close) the accounts at any point, and it'll show up as less available credit and a settled account on the CRA reports - some lenders will find that positive, others may prefer you having available credit which is being unused, others may prefer that you have available credit being used. Some lenders prefer evidence of settled accounts as it shows you kept to your agreement and parted company on good terms (i.e. you didn't default), and others will see that as a mark of a customer who is more likely to leave and make them less money as a result.

You can't please them all. Some lenders will penalise you for closing accounts, most will probably welcome it. Generally though, you'll want to have some available credit to prove you're able to manage it properly, but excess available credit is more a hindrance than a help, especially if you are wanting to borrow in the future for whatever reason. e.g. if you're applying for a mortgage and have 10k available on a card you never use, then the excess available credit will go against you.

Don't forget what a credit card is - its a pre-approved loan that you can use at any time, designed to make the issuer money. If you have no further use for it - why bother keeping it?