Sub prime credit cards.....keep open ?

dazzaofdagenham

Hi..
I've had a capital one Luma card for about 4 years now...limit started at 200 then 500 and now stands at 1000...

As this is a sub prime card is it worth keeping it open ?

A4445

It would depend if you have any other cards and the age of the accounts.:)

darkidoe

IF you have other credit cards with a decent length of history and will not be using the Capital one card then closing it might be worth thinking about. No point keeping an extra use of a card you will not use and it being a risk of fraud.

cheddar

darkidoe wrote: »

IF you have other credit cards with a decent length of history and will not be using the Capital one card then closing it might be worth thinking about. No point keeping an extra use of a card you will not use and it being a risk of fraud.

How does keeping a CC open pose a risk of fraud?

Genuine question btw.

dazzaofdagenham

I do have other cards.....American Express and a halifax card, both under 18 months..

With the luma, I have always paid minimum via direct debit ( safety net ) and paid extra when I have used the card. So over a period of 4 years this shows as good on my credit history with lots of green dots to show.

I'm just thinking shall I keep it open until the other cards have more of a usage pattern ?
I do use the luma card for Internet shopping etc, with a low limit of 1k I will be less exposed to any fraud should it occur.

Thanks

cooltt

dazzaofdagenham wrote: »

Hi..
I've had a capital one Luma card for about 4 years now...limit started at 200 then 500 and now stands at 1000...

As this is a sub prime card is it worth keeping it open ?

Good God no! Do you really want others thinking you're poor.

[Deleted User]

On my Clearscore (and MSE Credit Club) the fact none of my accounts are over 6 years is listed as a negative.

It's probably a small point, but as you've got it open at a decent limit, I'd say you're better off keeping it for now.

Remember lenders can't see the names of other lenders on your report when they search you, so they don't know it's subprime (although £200 starting limit might give it away - I think all the main banks start at either £250 or £500 minimum).

The only real things which are worth axing, IMO, if you have them are any JD Williams group catalogues that started at £125, as they are the only lot that do that - and it's obvious you used them as a credit file builder.

They serve a purpose, but once you start getting mainstream cards, I think they'd hinder you more than help - a lender would wonder why you still feel you have a need for what is a clearly sub-prime and (often) over-priced form of credit.

dazzaofdagenham

cooltt wrote: »

Good God no! Do you really want others thinking you're poor.

Good god NO.....when shopping with luma card I often wrap it up in harrods paper just to pretend I got loads of monies...

cooltt

dazzaofdagenham wrote: »

Good god NO.....when shopping with luma card I often wrap it up in harrods paper just to pretend I got loads of monies...

Smart, but Its the ASDA bag for life that gives you away dear!

darkidoe

cheddar wrote: »

How does keeping a CC open pose a risk of fraud?

Genuine question btw.

Well in my mind, if you have no CC, you would have 0 chance of getting into CC fraud. If you have one CC you have 1 card's chance of getting into CC fraud just by having it and using it, there is a small risk of it happening regardless of how safe you try to keep it. If you have 2 active cards, your risk increases statistically, and if you have 3 then by 3 times.

glentoran99

darkidoe wrote: »

Well in my mind, if you have no CC, you would have 0 chance of getting into CC fraud. If you have one CC you have 1 card's chance of getting into CC fraud just by having it and using it, there is a small risk of it happening regardless of how safe you try to keep it. If you have 2 active cards, your risk increases statistically, and if you have 3 then by 3 times.

but surely you can negate that with a tinfoil hat for each card?