Credit Card to repair Credit file.

adrockg

Hello.

To cut a long story short when i was younger i ended up ruining my credit file due to naivety and general silliness.

Now I am in the process of repairing my file. I started off with a capital one credit card and a vanquis credit card. I am aware that the interest rates are astronomical and I was only using the cards for small purchases and paying them off as soon as the statement came in.

After a few months my bank offered me one of their credit cards at a much better rate and i have carried on with that card, making small purchases and paying it off as soon as the statement came in.

My question is, am i better to cancel the two cards i don't use as they are no longer required, or should i continue using the cards for those small purchases and paying them off to show that i can keep everything up to date? However i have read that some people can see that as reliance on credit.

Any help or advice is gratefully appreciated. Thanks for reading.

Ebe_Scrooge

It's a dilemma, for sure :-)

Basically, using credit cards wisely (i.e. paying off in full every month ) will increase your rating. If you've been using sub-prime cards, and have now been accepted by a mainstream lender - I'd say, ditch the sub-prime ones, carry on with your bank's card for a few months, then try for a rewards card that gives you cashback or whatever on your spending.

The APR is irrelevant if you're paying off in full every month ( which it sounds like you're doing, and is the right thing to do ). So yes, ditch, the sub-primes, use your bank's, then look for the best rewards after a few months.

Dobbibill

Hi adrockg,

Welcome to the forum,

I would certainly ditch one of the cards.

If you keep the oldest card, it will show a longer history of maintaining credit and it's always good to have a back up to your usual card.

That said, keep doing what your doing, your obviously going in the right direction. By paying off in full when the statement arrives, the interest rates are not relevant, as your not incurring any interest.