New card or balance transfer?

Moclin

I currently have one credit card with a £500 limit that I've had for about 3-4 years. It has a balance of £40 which will be paid of in full early next month via my DD.

I've been looking into getting a new card with a higher limit and 0% interest on purchases for 12months+.

My questions are:

Should I apply for a new card now and transfer the £40 to it?
Should I apply for a new card now and just leave my current card as it is?
Should I wait till my DD comes out and then apply for a new card?

Robin9

You could ask for a higher limit on your existing card

20aday

I'm not sure what other credit products you hold but I'd personally keep the card as a 'back up' in case of emergencies.

Not only that you've got three to four years of account history there that new lenders will take into account when you apply for new products elsewhere.

As Robin says speak to the credit card provider; they may offer you a higher limit or a promotional rate (i.e. Balance Transfers/0% Interest on Spending for X amount of months.)

Moclin

Thanks guys.

I've always paid in full every month by DD on my current credit card and spent on average, around £100/month on it. I have one other finance account which has £199 left to pay - I pay off £100/month so that will be paid off in two month.

I got accepted for a mortgage exactly 12 month ago and my credit file was in good condition then so I imagine it's in even better condition now.

I considered asking my current credit card provider (Santander) but there are plenty of great deals out there from other providers. I can't see them upping my limit and then offering me 18 months interest free.

I did the MSE elgibility checker and it said I'd probably be accepted for the Marks and Spencers credit card which is perfect for what I need it for.

So would you apply for a new card or ask current card holder? If I should apply for a different card, should I wait till my current card balance is £0? Or would that not really make a difference.

20aday

Moclin wrote: »

Thanks guys.

I've always paid in full every month by DD on my current credit card and spent on average, around £100/month on it. I have one other finance account which has £199 left to pay - I pay off £100/month so that will be paid off in two month.

I got accepted for a mortgage exactly 12 month ago and my credit file was in good condition then so I imagine it's in even better condition now.

I considered asking my current credit card provider (Santander) but there are plenty of great deals out there from other providers. I can't see them upping my limit and then offering me 18 months interest free.

I did the MSE elgibility checker and it said I'd probably be accepted for the Marks and Spencers credit card which is perfect for what I need it for.

So would you apply for a new card or ask current card holder? If I should apply for a different card, should I wait till my current card balance is £0? Or would that not really make a difference.

I'd ask Santander first but there's no harm in applying with Marks & Spencers if the card suits what you're looking for; if your account with Santander is in good standing it won't matter there's a balance of £40 left on there when you go ahead and apply.

If you're wondering what your credit files look like there's Noddle and Clearscore which offer a free look at your reports.

There's also Experian (which you can view for £2 online but you have to wait for a PIN code through the post first.)

Moclin

Thanks for your reply.

I'm going to apply for an M&S card at end of month.

I use Noddle but find it never shows my most up to day information, usually a month behind the payments I've made.

I've also used checkmyfile.com before I applied for a mortgage last year and my scores were in the late 700's, early 800's. Post code was my main negative factor but what can I do about that!

Fingers crossed I get eh M&S card. Can't see why not with so little debt and a long and healthy file (no late payments ever).

Moclin

Hey. Thought I'd give you an update...

I applied for a Halifax credit card in the end because if you don't get accepted for the top offer (21months interest free) then they accept people but with a lesser interest free duration of 16 months. I got accepted for the 16 months interest free and I got a credit limit double of what I expected so all good