We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Cancel unused credit card before loan application?
SensibleSarah
Posts: 651 Forumite
in Loans
I'm looking to take out a loan for a new car in a couple of months. Hoping to go down the bank route as credit file is good so if I get headline rate with my own bank (HSBC) who I've been with for 20+ years then it's significantly better than car finance. Always the chance that I won't though...
Apart from mortgage (and student loan) I will have no other debt in a couple of months time when I'm planning to apply but I do have a credit card with zero balance and a £7k limit. I got it about 3 years ago for 0% purchase period to put car insurance on - which was £1400. Cleared in time and not used since or have any intention of doing so. I have another card I use very occasionally (every 3 months or so, never more than £50 at a time) for routine purchases & pay in full each time with £1.5k limit, which I've had for about 10 years.
I'll want to borrow about £9k for the car. I earn £36k p/a.
So should I cancel the large credit card now or does it benefit me to have it on file & never used?
Or is this just a question no one apart from the lender can answer?
Apart from mortgage (and student loan) I will have no other debt in a couple of months time when I'm planning to apply but I do have a credit card with zero balance and a £7k limit. I got it about 3 years ago for 0% purchase period to put car insurance on - which was £1400. Cleared in time and not used since or have any intention of doing so. I have another card I use very occasionally (every 3 months or so, never more than £50 at a time) for routine purchases & pay in full each time with £1.5k limit, which I've had for about 10 years.
I'll want to borrow about £9k for the car. I earn £36k p/a.
So should I cancel the large credit card now or does it benefit me to have it on file & never used?
Or is this just a question no one apart from the lender can answer?
0
Comments
-
9k + 7k + 1.5k = 17.5k slightly less than 50% of income so should be ok0
-
Cheers!
Suppose I'll find out in a couple of months 0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.4K Mortgages, Homes & Bills
- 178.6K Life & Family
- 261.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards