New cc should I close the old one.

Darren87

Hi, I just received my new cc and wondering what the best option is regarding total limit on my credit file.

Last year I applied for a capital one luma @32%. I wanted nectar points but never had a cc before and live at home with the parents so no history apart from usual mobile dd etc.

I've been watching my credit over the year and it appeared to be quite good after having the card for at least 10months which experian said was required to see how well I repay etc.

My cc limit for my Luma credit builder was £1500 and I have paid off in full every month so decided to take the plunge and try the rewards card from Barclay's. I got a response in a few minutes @ 18.9% and £5000 limit on the freedom reward card. After picking myself off the floor :rotfl: I was quite please with the outcome.

My question is now I will have a total available credit of £6500 which is half my yearly earnings, but I noticed on my reports it says if I use less than 33% of my total available credit this will seen as a good thing. So do I keep both cards and not use my luma or should I just close it and have a lower limit. I will probably apply for a cc for traveling abroad in the future so not sure how this will affect .

regards

Darren

thebritishbloke

Are you planning to regularly spend £1600 a month on your credit card? If not, then there's not much point to keep the Luma card open, it doesn't provide any benefits.

In the future, it may be worth having more than one card open for different benefits. I.e. 0% Purchases, Rewards card, foreign spending card etc.

Darren87

what I thought thanks, just being a newb as I remember reading the % of available credit so thought If I had more and used less this would be a good thing but then having too much I guess is equally not good. silly question but thanks anyway :rotfl:.