When is the best time to apply for regular credit after subprime cards?

rcrowley32

Hello,
My husband and I have 4 subprime credit cards (Aqua, Capital One, Capital One Progress and Vanquis). We have had them all for 3 years or so. Payments are always on time. We pay the balance in full every month. We may leave £100 and pay it off shortly after. Most of these cards have the maximum credit limit the company offers (£1800 and £1500). And most have lowered the interest rates (except the Vanquis who increased our limit and then raised the interest rate to 70%!)

When would be a good time to apply for another credit card, and what type should I try for?

**The only issue on our credit report is that my husband's ex took out a card without him knowing in 2003 and never paid. When we moved back to the UK in 2009, we disputed the charge and asked for his signature on the application and they removed the debt.

[Deleted User]

One application now wouldn't do much harm, whether successful or not.

Which card you shold apply for very much depends on what you're looking for.

Beware of leaving a balance on the card. If you're not able to clear the balance in full each, look carefully at your spending. That £100 or so you can't pay off is costing you a lot.

Simon7685

Maybe try Barclaycard, they gave me my first prime card, they seem to be one of the easier prime card issuers from what I have read about. If you don't get accepted don't apply for more cards though, just keep doing what you have been doing - except for carrying a balance. It took me around 3 years to get to prime.

LplateSaver

You have two cards each? I'd put very little on my two cards for two months (eg no more than £200 on each) and pay off in full both months so it looks like I have a low credit to debt ratio and then I'd test the waters by applying for a card with my own bank.

eskbanker

Try a card from whoever you bank with as a starting point.

Also, experiment with the MSE eligibility checker for indicative assessments of which cards you might be able to get.

If you have enough headroom you may also wish to consider whether to close down one or more of your existing cards, since any new application for credit will consider the ratio of your total available credit versus your income.

pjread

Whoever you bank with, mbna and barclaycard all seem good suggestions.

I'm assuming you made sure nothing negative is showing on all three CRA's ?

rcrowley32

Thanks so much! We were approved for an MBNA card. Our first card that's not subprime. Should I get rid of the Vanquis card now? Or just leave it not using it like I do now?

[Deleted User]

IMO, whether to get rid of one (or all) of your other cards, depends on if the card you have just got, has a high enough credit limit, for your needs.

If yes, then I'd get rid of all your sub prime cards.

If not, then I'd hang onto one, or both.

The last thing you want to do, is go over the limit, on your shiny new MBNA card.

rcrowley32

Thanks. I was worried about getting rid of the cards bcc I had heard that getting rid of a card could lower your credit rating, because you have less available credit. But I guess that's just in the US. I think I will get rid of the Vanquis for now because I never use it anyway. And the 70% interest with their Gold Card is just ridiculous.

thebritishbloke

rcrowley32 wrote: »

Thanks. I was worried about getting rid of the cards bcc I had heard that getting rid of a card could lower your credit rating, because you have less available credit. But I guess that's just in the US. I think I will get rid of the Vanquis for now because I never use it anyway. And the 70% interest with their Gold Card is just ridiculous.

It's the same idea in the UK, but it only really matters if you're maxing the cards out.

Personally, I'd get rid of all your sub-prime cards unless they offer some sort of perk/benefit.