Changing from a Aqua to a 0% Credit Card

OutOfTheWoods

Hello, After completing my IVA last December i took out a Aqua CC with 34% APR to build up my credit, which has been successful

I would like to change to a low or 0% on purchases CC & get away from the high APR

First thing, when starting a new CC is it possible to have the old CC automatically close even with out a balance transfer being applied?

If not will opening a New CC & closing the Old CC have any effect on my Credit Score?

Me & my wife are hoping to getting a mortgage soon so dont want to get anything negative on my Credit Score before we do.

Thanks in Advance

[Deleted User]

Oening a card doesn't close any prior ones, whether a BT is carried out or not.

Why do you need 0% on purchases? Are you planning on carrying a balance? Unless you're crystal clear on how you will clear it before the end of the promo rate, you would be better off continuing to clear in full each month.

Additional credit will affect how lenders see you - either positively or negatively, depending on your circumstances and their criteria.

john1002

With the IVA showing on your credit report for 6 years you will struggle to get any 0% deals for some time, keep up with aqua paying off every month and maybe in 12 months time try another card say barclaycard initial who after a while offer 0% BT and money transfers for a 2.9/3% charge.

Suggest you use a broker for the mortgage.

Jonn

OutOfTheWoods

Im wanting a 0% on purchases as at the moment im having to make sure its paid off before the statements produced to avoid any APR charges so with a 0% i wont have to worry about that.

As for the IVA it is now over 6 years old :j (From the default day) so all clear.

& yep we have a mortgage broker.

[Deleted User]

I think you've misunderstood how your credit card works. You need to wait until the statement is produced and then pay in full before the due date. That way you pay no interest but build a credit history.

By payng off before the statement, you look as if you are not using the card at all, which doesn't help you.

You don't need a purchases offer, which in any case, would only be for a few months duration.

grumbler

OutOfTheWoods wrote: »

Im wanting a 0% on purchases as at the moment im having to make sure its paid off before the statements produced to avoid any APR charges so with a 0% i wont have to worry about that.

Learn the lesson from your past and keep doing what you are doing ATM. All 0% are temporary and it's worth making a habit to pay the balance in full every month. Instead of 0% try getting a cashback CC unless your Aqua is Reward.

Only for some big purchase it makes sense to apply for a 0% card - with a clear plan of paying it off before 0% expires.

Superscrooge

As others have said. If your main concern is trying to improve your credit history I would stick with your current credit card rather than chopping and changing.

You only pay interest if you do not clear the balance before the payment due date, which is always at least two weeks after the statement date.

As long as you clear the balance each month you pay no interest and you gradually build up your credit history

OutOfTheWoods

Thanks for the advice, i'll stick with the Aqua & pay it off after the due date

grumbler

OutOfTheWoods wrote: »

Thanks for the advice, i'll stick with the Aqua & pay it off after the due date

Before the due date, not after.

Marcio45

Not outofthewoods yet...
You need to get a grasp on how credit cards work to your advantage... Improving your credit report.

You spend the money (purchases) and then the statement is issued on a specific date. It tells you the minimum payment and due date.
To avoid interest you need to pay the full amount owed on the statement until the due date. But attention, dont leave it for last minute as banks need 2/3 working days to process the payment. So if due date is on a monday and you pay on a saturday almost for sure the payment will be late (depending on bank).

Doing it this way will show on your credit report and shows you can manage credit. If you pay the full amount before the statement it might show as no usage on the reports, and so will not benefit you, as on ratings is concerned.

Also, note that cash withdrawals on credit card actually damage your credit worthiness and it doesnt give you the interest free period as in purchases.
Good luck on your financial recovery.

grumbler

Marcio45 wrote: »

...But attention, dont leave it for last minute as banks need 2/3 working days to process the payment. So if due date is on a monday and you pay on a saturday almost for sure the payment will be late (depending on bank).

The best way is to leave it to the bank by setting a DD for full payment.
Each statement will say the date when the next DD will be collected.