Available credit and credit checks

Druagh

Having had a bad credit rating in the past, I have had a high interest credit card (Vanquis) for a few years. I have now been accepted for a 'normal' credit card (Barclaycard) with enough of a credit limit to clear the Vanquis card, and 36 months at 0% interest.

My next step should be to apply for a better bank account than the 'Basic' one I have. Of course this will be subject to credit checks, and whilst I have just been checked by Barclaycard, the limit on this new card takes my available and active credit to more than half of my annual salary. I have read elsewhere that this doesn't look good on a credit report.

My figures are:
Annual salary £22,500
No mortgage
Outstanding Credit Union loan; balance £1,700; originally £3,000
Vanquis card; balance £0.00; limit £3,000
Clydesdale MasterCard; balance £500; limit £1,700
Barclaycard; balance £3,500; limit £3,800
Two mobile phone contracts; approx. £630 credit

therefore about £6,130 active credit, but £12,130 that may be regarded as available credit.

My question is whether I should close the old Vanquis card, reducing my available credit, before applying for a new bank account (or any other further credit)? I've no intention of using this card again, but the 'spare' credit could be handy in the event of an emergency.

Thanks for any advice.

Teqpro

Hi,

In my experience it would be wise to close your Vanquis card, (i hated when they called rudely saying I've not paid my monthly bill) i always paid it in full every month but they use out of date slow computers.The month after i got rid of my Vanquis card i was accepted a Natwest Platinum card with 0% for 18 months, never looked backed.

If it was me I would get rid of the Clydesdale MasterCard too, keep the Barclaycard and apply for a Barclays current account, simply because its easy to manage both accounts with an app on your phone.

boo_star

Druagh wrote: »

Having had a bad credit rating in the past, I have had a high interest credit card (Vanquis) for a few years. I have now been accepted for a 'normal' credit card (Barclaycard) with enough of a credit limit to clear the Vanquis card, and 36 months at 0% interest.

My next step should be to apply for a better bank account than the 'Basic' one I have. Of course this will be subject to credit checks, and whilst I have just been checked by Barclaycard, the limit on this new card takes my available and active credit to more than half of my annual salary. I have read elsewhere that this doesn't look good on a credit report.

My figures are:
Annual salary £22,500
No mortgage
Outstanding Credit Union loan; balance £1,700; originally £3,000
Vanquis card; balance £0.00; limit £3,000
Clydesdale MasterCard; balance £500; limit £1,700
Barclaycard; balance £3,500; limit £3,800
Two mobile phone contracts; approx. £630 credit

therefore about £6,130 active credit, but £12,130 that may be regarded as available credit.

My question is whether I should close the old Vanquis card, reducing my available credit, before applying for a new bank account (or any other further credit)? I've no intention of using this card again, but the 'spare' credit could be handy in the event of an emergency.

Thanks for any advice.

If you're only looking for an account (no overdraft) then you should just apply for it.

Closing the Vanquis may cause issues in terms of your credit to debt ratio. It may not affect your current application but it certainly could affect credit applications.