Dump a card or keep it?.....

ajaxgeezer

Hey all, advice from those in the know would be very helpful.

I've just (days ago) transferred from a MBNA card to a Natwest one so now have an empty MBNA card, obviously they haven't come up with any good rates for me yet. The Natwest card is a 13month 0%, so I won't be 'needing' another CC for 12 months.

I know the theory is to dump an old card, but with not needing one soon and also with the fact that the potential card to be dumped is an MBNA one (i.e. a useful tool), I'm tempted to keep it in the hope of new offers. As no damage to my credit rating (searches) should occur within 12 months, keeping the MBNA (£6k) seems right in case they call me with a deal. Thoughts?

Thanks.

YorkshireBoy

ajaxgeezer wrote: »

obviously they haven't come up with any good rates for me yet.

Within a week or two of me paying off my Virgin card earlier this year, MBNA were on the phone to me offering 0% for 9 months with a capped £75 fee (I have a high limit so could take full advantage of the cap).

I'm tempted to keep it in the hope of new offers...keeping the MBNA (£6k) seems right in case they call me with a deal. Thoughts?

I agree, although with an uncapped 3% fee you'd probably need to be a non-tax payer or have an offset mortgage to make anything out of a 6 month 0% offer.

ajaxgeezer

Thanks YB.

I agree, and not in either of those positions unfortunately. Could make a big dent in my BTL though as I have 2x £3000 monthly savers maturing in Oct/Nov.

How negotiable are they, think they may stretch to 12 months?
The card in question has just gone up to a blinking 3% fee rather than the previous 2%, so a 6-month deal is a non-starter.

YorkshireBoy

ajaxgeezer wrote: »

How negotiable are they, think they may stretch to 12 months?

I'd say no chance - certainly not at 0%. The only 12 month repeats I've seen mentioned are with LTSB, and they're given at 1.9% APR.

The card in question has just gone up to a blinking 3% fee rather than the previous 2%, so a 6-month deal is a non-starter.

Even a 2% fee for a 6 month repeat has borderline profitability in a savings account.

Just to throw a spanner in the works...

I see that Virgin now have a 15 month 0% deal on their website, which has a 2.98% uncapped BT fee. How about you wait a month or so and apply for this as an existing MBNA cardholder (with a nil balance)? If you're accepted (you'll probably get a low limit), you could then ask them to move the limit across from your old MBNA card and close the old card for you.

ajaxgeezer

YorkshireBoy wrote: »

I'd say no chance - certainly not at 0%. The only 12 month repeats I've seen mentioned are with LTSB, and they're given at 1.9% APR.Even a 2% fee for a 6 month repeat has borderline profitability in a savings account.

Just to throw a spanner in the works...

I see that Virgin now have a 15 month 0% deal on their website, which has a 2.98% uncapped BT fee. How about you wait a month or so and apply for this as an existing MBNA cardholder (with a nil balance)? If you're accepted (you'll probably get a low limit), you could then ask them to move the limit across from your old MBNA card and close the old card for you.

.... excellent point, they've done this with me before, fully cosolidated the limits of two cards together on to one. Might give it 3 months though as I've had searches a-plenty last summer with mobile phone, moving and also getting the BTL. I feel I only got the Natwest CC on behaviour as I've banked with them for what seems like forever. Just counted on Experian - 8 searches since 1st July '06. That excessive? Would it put MBNA off? Sorry to be a pain