Best way for cc card management

rd350ypvs

Current income £46000


BarclayLoan - £3689 left to pay


Hi, I have had a Barclaycard CC for the last 10yrs at 6.8%. It currently has a balance of £3082.
I have applied for and been accepted for a Tesco 0% balance transfer card and have applied for the £3082 to be transferred at 40 months 0%. Also going to money transfer the barclayloan onto the Tesco card for overall balance of £6771.


Now, my Barclaycard CC has a £15000 limit and my new Tesco CC has a £15800 limit.


2 cards with potential of £30,800 of credit to use.


Since I have never spent over £3500 on my Barclaycard in the entire time I have had it, which scenario would be the best to do


1) Leave cards as they are ? - Possible no future borrowing like a loan since my income to debt ratio looks poor


2) Make both limits £7500 to equal my original total limit


3) Get rid of the Barclaycard and keep the Tesco - No low apr on CC anymore which doesn't help


4) Keep Barclaycard and after 40 months ditch the Tesco (not going to take this long anyway, looking at 15 months max to pay the debt off




The main reasoning is that if I require a loan in the future it won't look good to show that I have a possible debt of £30800 available. Ideally like things to stay as they are i.e currently owe £6770 with a credit limit of £15000.


When I applied for the Tesco card I was only expecting the limit to be roughly what I wanted to transfer, not to have a limit higher than my existing card




hope this all makes sense

cooltt

This is a myth "I have a possible debt of £30800 available".


As has been explained on many occasions here all lenders have their own lending profile so it is almost impossible to give a definitive answer. However with your particular situation the positives are.


Barclaycard: Open for a long time with a high credit limit. This demonstrates a stable financial relationship, payments made on time and trusted to manage a high credit limit. Lenders love this, you are low risk on that part of your credit worthiness. Of course your credit worthiness is made up of other things too.


Tesco card; manage this account in the same way and lenders will love this too.


At present you have a low debt to credit ratio demonstrating again that you can be trusted not to rack up huge debt.


Forget about limits and the number of cards, its the way in which they are managed that matters to a lender.

molerat

I would be tempted to max the Tesco card with a cash transfer - stash it somewhere and make it work for you, over 40 months it will pay you - and just pay the minimum each month. If you need a loan you will already have a fair bit stashed interest free. Use the Barclaycard for everyday spends and pay off in full each month, maybe bring the limit down a bit.