Rubbish Limit vs no card

natscat84

I have a CC from M&S which I've had for the past 6 years. Limit on it was £2100, but when I went to medical school, I asked them to reduce the limit to £500 so I didn't spend more than I could afford to repay when my student loan came in next term.


I'm now finishing off my 1st year working as a doctor, so I have a decent income.


Current balance on card is £180 due to me putting my GMC fees on it this month, usually gets cleared out monthly (but I have a DD set up for £100 each month to pay way more than the minimum if there is a balance on the card just in case I can't clear it all in one hit)


Other borrowing is £4500 left on a personal loan with my bank, and £6600 left on my 0% finance car payments (finishes in 14 months)


M&S won't increase my limit. They also won't change my name from my maiden name to my married name (married in 2011), but that's another story.


Question is, am I better off cancelling a card which is run as per MSE advice (pay it all off monthly, and if not, then pay more than the minimum) since ANY balance is going to be a high % usage, and then seeing if I can get something with a better credit limit or alternatively just not have a CC.


Will paying my car + loan be enough to give me a thick enough credit file? Have checked both Noddle and Clearscore and there is nothing adverse on them (no defaults in the last 6 years, no CCJs, no CIFAS)


I'll be looking to buy a house in the next few years, so want to have my rating in tip top condition. Have cancelled my unused catalogue credit accounts, just don't know what to do with this CC.


Thanks!

molerat

Proper management of revolving credit is seen as a good thing so a CC of some sort is always a positive factor. High usage and consistently paying off a low limit card will not be seen as negative but the fact you only have a low limit can be negative. Another card may help to bring your credit card utilisation % down. Have you looked at the "factors on your report" section on Clearscore.

natscat84

There are only 3 negatives on my Clearscore:


1. Not on electoral roll (I am)
2. Low CC limit
3. 'Lots of credit applications recently' (loan October '15 once I'd started working to clear off rubbish debts from med school, Paypal CC August '15 (£500 limit, for ebay and such like) and about 15 searches from when I renewed my car insurance in January)


I'm not intending on applying for anything else until I sort out getting enough for house deposit etc, so presumably the 3rd one will drop off at some point before that