MBNA Money transfer

april87

So, OH and I have some emergency communal roof repairs coming up, and low and behold not enough in savings. OH is due to remortgage in a few months, so we didn't want any new credit searches on his file. I did the soft search for the above and was approved but only for £500 and not what I was hoping for. Left us with very little choice, that OH then had to apply.

My credit history has been rubbish but have been making a fair bit of improvements since growing up. Now OH was accepted for the full amount and more than was required and well now I want to cancel the card that I was approved for. Is it as simple as waiting for the details to arrive and cancelling it within the 14 days, or am I just trying to over complicate things in my head?

Thanks

[Deleted User]

Would it be useful to keep it to build a decent credit history?

SeduLOUs

Deleted_User wrote: »

Would it be useful to keep it to build a decent credit history?

Thought the same as it's a 'proper' credit card. Don't bother using the money transfer, just use the card for some groceries each month and have a direct debit set up to pay it in full each month.

april87

I already have an aqua card and one from BOS, which I use and pay off each month which is helping build a decent history.

SeduLOUs

An MBNA card will do a better job than Aqua. Aqua is a bad credit card and the limit will always be relatively low. MBNA is a proper card and potentially could end up with a limit of several thousands. Once you've been trusted with a limit like that you're more likely to be accepted for large limit cards in the future.

If you're adamant you only want one card, I'd personally close the Aqua.

Edit: Sorry, didn't see BOS. I'd still dump the Aqua, and keep the two better ones.

JimmyTheWig

april87 wrote: »

OH is due to remortgage in a few months, so we didn't want any new credit searches on his file.

Fair enough to not want the credit search on his file, but a credit card balance will do more harm than a search.
I know that this is now unavoidable, but you can minimise it. You could use what you can of the balance on your card, and reduce what you put on your OH's card by that amount.

[You could also see if BoS would do you a 0% Balance Transfer deal and use it to pay off OH's MBNA card. Then you use the Aqua for the time being for general spends that you pay off in full each month.]

Incidentally, often when people say "remortgage" they mean "getting a new deal from their current lender as their fixed rate is coming to an end". This, technically, isn't a remortgage. Most (I believe) lenders don't do a credit check when doing this, in which case none of the above would matter.

april87

Jimmy that is exactly the case. Deal is coming to an end, he's already spoke with his current lender about this. I'm just over cautious these days due to my checkered history. If his bank doesn't offer him a decent deal then I assume it would be a case of a remortgage and that would entail checks? OH is a bit more clued up than I am, but I like double checking the facts.

Ah ok, hadn't realised I could see if BOS would do a balance transfer. They recently increased my limit after like 3 months, as did Aqua. So general consensus would be to keep the card, and if I really wanted to get rid of the one, it would be Aqua? TBF I was quite happy with it, as it was serving its purpose in helping build up a decent history.

MABLE

SeduLOUs wrote: »

An MBNA card will do a better job than Aqua. Aqua is a bad credit card and the limit will always be relatively low. MBNA is a proper card and potentially could end up with a limit of several thousands. Once you've been trusted with a limit like that you're more likely to be accepted for large limit cards in the future.

If you're adamant you only want one card, I'd personally close the Aqua.

Edit: Sorry, didn't see BOS. I'd still dump the Aqua, and keep the two better ones.

However Aqua card very good to have for using overseas. To me the would be the attraction but have the HX Clarity card instead.

JimmyTheWig

april87 wrote: »

Jimmy that is exactly the case. Deal is coming to an end, he's already spoke with his current lender about this. I'm just over cautious these days due to my checkered history. If his bank doesn't offer him a decent deal then I assume it would be a case of a remortgage and that would entail checks? OH is a bit more clued up than I am, but I like double checking the facts.

Correct. If he goes to another lender (remortgage, as you say) then he'll have to go through the whole application process including credit checks, affordability, etc.

Ah ok, hadn't realised I could see if BOS would do a balance transfer.

Pretty much all cards do Balance Transfers where they pay off a different credit card. [Unlike Money Transfers, where MBNA are one of only a few who allow this.]
Whether they'll give you a good deal on a Balance Transfer is up to them and may vary from time to time and customer to customer.
As a general rule you can pay off anyone's credit card with a Balance Transfer to your card. Note, however, that this means you are responsible for the debt and not them. It sounds like that wouldn't be a problem in this case, but worth mentioning.

So general consensus would be to keep the card, and if I really wanted to get rid of the one, it would be Aqua? TBF I was quite happy with it, as it was serving its purpose in helping build up a decent history.

I'd say get rid of Aqua, but to a large extent it's a personal opinion.
Aqua is likely to have a higher interest rate. But if you pay in full on time every month then that won't matter.
Aqua isn't seen as as good a lender as MBNA or BoS, but when other companies do a credit check on you they don't see the lender so this only works if you're trying to impress people in the pub with how good your cards are!
Aqua is likely to give lower credit limits to creditworthy people than the likes of MBNA or BoS. But if they're increasing your limit and you're happy with the limit then I see no real reason to switch.

System

If the account isn't setup then all it will leave is a credit search, if it then not much lost (or gained) by keeping it.

As for MBNA, they are fine but if you are fully repaying the Aqua then their interest rate is almost immaterial and i would suggest to look at any benefits such as forex free or cashback.

There is alot of snobbery about Aqua on here but I wouldn't let that concern you.