Santander 123 Credit Card

newuser78

I have a 0% interest 123 Santander credit card which the interest free period is due to end in March 2017. I got the card in 2015 via this site.

Credit limit is 4k and although I don't pay off in full every month, I am never near 3k let alone 4k (obviously I need to ensure that I have £0 balance before 0% period ends!).

This article made me think - http://www.investopedia.com/articles/investing/082115/should-you-increase-your-credit-card-limit.asp - I realise this is US-specific but does the same apply for UK? Is it worth doing?

My credit reports are all good and other than the credit card, I have no debt and saving regularly.

What are your thoughts?

bigadaj

Credit scores are useful in the us, whereas in the uk they are largely a made up number.

You say you don't clear your credit card but it's 0%, is this on purchases or a balance transfer? Just seems a strange quote, you'd be better off making minimum payments on a 0% card and saving into an interest paying current account before paying off in full when the deal comes to an end.

I'd it's your only card and you are running at above 70% utilisation then it's potentially not ideal, but shouldn't be much of a problem if you are paying and maintaining the account reasonably.

newuser78

Thanks for your reply, bigadaj.

Apologies, I forgot to mention - it's a purchases and I do make at least the minimum payments every month and on some months, I pay in full to clear the balance.

This is my first/only credit card and although I don't "need" it, I got it for cashbacks. I guess I best ask Santander to increase my credit limit then at least the utilisation is even better, right?

I don't "need" the extra but keen to get it right.

PixelPound

Santander might not increase it unless you have had a big increase in your income. Unless you are aiming to apply for more credit, then its a pointless task. If you want to decrease utilisation, you can easily pay some off your card before the statement date rather than waiting for it, since you are utilising it for cash back and not a balance transfer (as you pay in full some months).

newuser78

Thanks nic_c! I did get a big increase of my salary due to new job.

Debt is "cheap" currently and it's best to maximise that opportunity for savings but then again debt is debt and the credit providers do not rate you highly if you are debt-free... I guess it is a fine line!!

Aargh!

Vortigern

newuser78 wrote: »

I have a 0% interest 123 Santander credit card which the interest free period is due to end in March 2017. I got the card in 2015 via this site.

Are you paying a monthly fee for this card? You might get the first year free, but that will end, if it hasn't already.

Does your cashback cover the monthly fee? Or are you earning enough interest on the outstanding balance to cover the fee?

If not, it's time for a new card.

Superscrooge

I'd be wary about credit score advice on US websites because their system of credit scoring is different from the UK system.

Information on the below link is more relevant to the UK.

http://www.moneysavingexpert.com/loans/credit-rating-credit-score