whats best?

pinewapple_2

Well im 19, Looking to carry on getting a good credit rating. I currently have £200 Capital one secured card and £1050 MBNA started at £300 but within 2 months was asked if i wanted higher limit. Also have £2000 overdraft with natwest never used.

Today decided to try for natwest reward credit card with a much lower apr of 23.7% and was accepted with £1500, Was also offered higher limit to overdraft to £6500 and accepted.

Always pay full on the credit cards infact i barely use them alot of the time owe £0, And i'd only spend what i can have.

Just wondering would it be best for me to close the Capital one secured card would it be better for my credit file? Just wondering as i had to pay a £50 security deposit for the card so with it being secured surely cant be good for credit report. Is natwest credit cards classed as a "prime" credit card?

Thanks :beer:

[Deleted User]

The secured aspect has no bearing on your file.

But given your age, you may want to get your deposit back and concentrate on the one card for now.

Candyapple

Is natwest credit cards classed as a "prime" credit card?

It's not a subprime card, so in basic terms, yes, it is a "prime" card. However Natwest are rubbish and why pay them £24 per year for nothing? There are far better card companies out there.

You might also want to reduce your limits with regards to your overdraft because even though you say you clear what you spend, by having large limits, it means in the future if you want to apply for a new card, you will be limited by affordability.

If I were you I would:

1. Get the security deposit back from Capital One and close the card.

2. If you have recently opened the Natwest card try and get the £24 fee back and close it. If they won't refund you the fee, keep the card open until your year is up and make sure you close the card account before they renew the fee.

3. Drastically reduce the overdraft, or even get rid of it altogether, especially if you don't use it.

4. Switch banks to a decent one, there are many that will pay you for switching to them.
http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

5. Apply for a card that meets your needs, say perhaps a 0% purchases card?
http://www.moneysavingexpert.com/credit-cards/best-0-credit-cards

Or one that offers rewards?
http://www.moneysavingexpert.com/credit-cards/best-credit-card-rewards

pinewapple_2

I also hold a natwest rewards current account so the fee is removed, I was told overdrafts have no affect atall on credit score/rating i guess the main reason i got it is because when i was offered it he said even if you don't use its good to have. I am going to close the capital one as i have no need for it will just keep 2 cards. Thanks anyone else have a opinion on the overdraft?

takman

pinewapple wrote: »

I also hold a natwest rewards current account so the fee is removed, I was told overdrafts have no affect atall on credit score/rating i guess the main reason i got it is because when i was offered it he said even if you don't use its good to have. I am going to close the capital one as i have no need for it will just keep 2 cards. Thanks anyone else have a opinion on the overdraft?

Overdrafts are a rubbish way to borrow money compared to credit cards. So by having a £6500 overdraft available all your doing is reducing your chances of getting higher credit card limits. This is because all the credit available to you is considered when you apply for a credit card or apply for a higher limit so the overdraft is hindering you.

pinewapple_2

I don't even use the overdraft don't think I ever will, just there for security I guess. Is it best removing or reducing to 1000/2000?

pinewapple_2

Been thinking about it more, Been thinking of just totally removing the overdraft as i will never use it. I just thought having a large overdraft and not using it was good to a extent. Also note im still trying to get a better rating was surprised i got the natwest one.