When to dump Sub-Prime Credit

Essexboi21

Hi,

I am looking for some advice. I want to get rid of one or more of my old credit cards, which ones would you recommend i get rid of and how will it affect my credit file.

On my credit file i have:

1 default, and 1 case of long term arrears from about 5 years ago

I also have a healthy overdraft.

Old Cards - There is a small balance on all cards, but can easily be cleared

Vanquis - Opened Spring 2011 - 49.9% - All payments on time - Credit Limited Started £250 now £3000

Capital One Progress - Opened Summer 2011 - 17.9% - All payments on time - Credit Limit £500 - Unchanged

Aqua - Opened Winter 2013 - 34.9% - All payments on time - Credit Limit started £250 now increasing to £1800


New Cards - Maxed out on Balance Transfers

Barclaycard Platinium - 33 Months Interest Free Balance Transfer & 18.9% - Limit £2500

Capital One Classic - 6 Months Balance Transfer & 34.9% - Limit £1000

user1168934

I would close Vanquis and Aqua simply for the fact that they have a high interest rate. I would recommend keeping the card which you have had for along time so it shows on your credit file that you have had credit for a long time. For this reason I would say keep Capital one going as long as you can. You got Vanquis and Capital One around the same time so I am suggesting you close Vanquis due to higher rate.

Basically just keep some old card open and running and then as you get new cards with new offers you should close the ones you dont need.

Essexboi21

I was thinking that!

Was thinking of cancelling the vanquis, but due to the limit, Might keep the Aqua for a bit, just incase i need for cash-flow.

ricky_v

I personally only close down credit card accounts if I cannot receive a benefit from them (e.g the 0% or cashback offer ends), prime or sub-prime.

I would only keep the Barclaycard Platinium (until the 0% ends) and Capital One Classic. If the cap one card is the card I'm thinking of where you get 0.5% cashback on all purchases then use that card for all your spending once the 6 month 0% BT has ended, and pay off in full every month.

CLAPTON

Hi,

I am looking for some advice. I want to get rid of one or more of my old credit cards, which ones would you recommend i get rid of and how will it affect my credit file.

On my credit file i have:

1 default, and 1 case of long term arrears from about 5 years ago

I also have a healthy overdraft.

Old Cards - There is a small balance on all cards, but can easily be cleared

Vanquis - Opened Spring 2011 - 49.9% - All payments on time - Credit Limited Started £250 now £3000

Capital One Progress - Opened Summer 2011 - 17.9% - All payments on time - Credit Limit £500 - Unchanged

Aqua - Opened Winter 2013 - 34.9% - All payments on time - Credit Limit started £250 now increasing to £1800


New Cards - Maxed out on Balance Transfers

Barclaycard Platinium - 33 Months Interest Free Balance Transfer & 18.9% - Limit £2500

Capital One Classic - 6 Months Balance Transfer & 34.9% - Limit £1000

One might have thought the priority was to be debt free rather than swap CCs

Essexboi21

CLAPTON wrote: »

One might have thought the priority was to be debt free rather than swap CCs

Thanks, quick note - I am debt free (Savings = more than my Credit card at 0%) and are merely using credit cards to improve my credit rating.

And always pay interest bearing cards in full!.

I have a high monthly spend and am hoping to get a good reward card in the future with some good perks.