Credit score/rating affected....?

jlg1

Hi everyone,

I dont use credit cards much but have done a few balance transfers over the years.

My current offer is ending and I wanted to again transfer the balance over to a new card.

I applied yesterday for the Sainsburys card. Problem is the credit limit i.e, £1,000 (only was told this after I was advised I was accepted online) this is much lower than I currently have with MBNA i.e, £3,000. and another card (no balance on it but credit for £6,000..?)

The offer is for 33 months interest free on balance transfers.

So if I was to cancel this Sainsburys card and apply for a different card (saw one with Santander which is 33 months on balance transfers and 0% purchases i.e, 18 months compared to 0% for 6 months - Sainsburys).

How would this affect my credit/credit score etc.. or would it...?

I spoke to Sainsburys and they advised if I was to cancel, to wait 90 days until the info would be removed from their system...although I could apply for another card right now and may also be accepted but "who knows what the credit limit would be on the other card"...same searches etc... will take place.....

I'm worried how it looks cancelling the card now and reapplying for a new card/new company etc....

I was thinking if it causes issues would it be better to let the balance transfer go through - pay a load off it and then (I have to make a big purchase of £350+ soon) which would nearly bring me up to my £1,000 limit...(current balance just over £800) rather than cancel the new Sainsburys card altogether....?

If Ive applied for this balance transfer/new Sainsburys card, will the account open with the balance transfer taking place immediately.......? I noticed the offer stated you could make the transfer up to 3 months at 2.89%....

I usually simply do a balance transfer on the new card/offer and don't need to make any purchases at all...but with Xmas etc... coming up...

Any advice much appreciated...:)

Cheers

James

thebritishbloke

It could be your higher credit limits that are hindering you. Some lenders won't lend you more money if your credit limits already relate to a large part of your income.

jlg1

thebritishbloke wrote: »

It could be your higher credit limits that are hindering you. Some lenders won't lend you more money if your credit limits already relate to a large part of your income.

Hi,

Thanks for the reply...I thought it could be something like that...£6,000 seems a large credit limit to be honest...

Given the big purchase I dont want to be paying interest on £350+ amount...hence the interest free purchase...

Cheers

James

thebritishbloke

jlg1 wrote: »

Hi,

Thanks for the reply...I thought it could be something like that...£6,000 seems a large credit limit to be honest...

Given the big purchase I dont want to be paying interest on £350+ amount...hence the interest free purchase...

Cheers

James

You're looking for a 0% deal to spend £350? If you need to finance £350, you shouldn't be spending £350.

Dobbibill

Have you spoken to the CC company that you have a £6k limit on to see if they have any balance transfer offers they could offer you. If this is possible then you don't need to take out another card but have to agree with thebritishbloke, £350 on a card for Christmas is not good, budget for Christmas as if it were a monthly bill rather than leave yourself to scramble to get more credit each year when Christmas is around the corner.

Good luck

DB

jlg1

thebritishbloke wrote: »

You're looking for a 0% deal to spend £350? If you need to finance £350, you shouldn't be spending £350.

Sorry not getting you on this - surely the point of a credit card is to buy something you haven't got money for at the time. I could finance this amount BUT if I have a one off interest free purchase and add this to my balance it WILL be cleared before the time is up.

The £350 is a one off purchase (guitar) - I wont be using the card again after this...except to clear the 0% interest on the balance....:o

I think we're getting a bit off topic here anyway - no one has answered my original question - do you think my credit rating etc.. will be affected if I was to cancel the card Ive just been accepted for and go for a new deal...?

James

jlg1

Dobbibill wrote: »

Have you spoken to the CC company that you have a £6k limit on to see if they have any balance transfer offers they could offer you. If this is possible then you don't need to take out another card but have to agree with thebritishbloke, £350 on a card for Christmas is not good, budget for Christmas as if it were a monthly bill rather than leave yourself to scramble to get more credit each year when Christmas is around the corner.

Good luck

DB

I may have give the wrong impression here - this isnt a yearly thing - this is a one off purchase of £350 as in the other reply I wont be using the card after this...

Budgeting for Christmas is something I would do and have already done this year....

I might phone the CC company and see what they can offer...

But I still need to know is there an impact for me considering I might have to cancel the card I have been accepted for...and go for another deal - or simply just cancel it and leave it at that....

James

thebritishbloke

jlg1 wrote: »

Sorry not getting you on this - surely the point of a credit card is to buy something you haven't got money for at the time.

Yes and no. A lot of people 'Stooze', which would mean you buy something on 0% and keep the money you otherwise would have spent on it, in an interest-paying bank account.

The main point is, you don't have £350 to spend. You should not be financing £350, especially if you can't afford to buy it outright in the first place. Financing £350 here, another £200 there, and suddenly you've got a £2k debt to pay off that you forgot about.

It's up to you what you do, but I wouldn't recommend financing £350, I'd save up for it. It's not like the guitar is a necessary purchase.