Cancel card?

deborah_sloan

I have a credit card with my bank Nationwide which has not been 0% for a long time. I got it at 0% at least 4 years ago. I have been checking my credit files and it is actually on my cons list because my limit is only £500. I was thinking of cancelling it and applying for a new 0%. However I have read on here that cancelling a long term card can negatively effect your score. I am also looking to get a mortgage this year and dont want to have a bad credit score.

Is this correct? Should I not cancel my card? Any advise is appreciated.

glentoran99

take no heed of your credit score, it will bear no relevance in getting a mortgage

john2054

Don't cancel it, you should ask for a credit limit increase...

deborah_sloan

It doesnt have 0% on it though and I dont know if they would offer me much more to be honest. I got a letter about a year back that said they would put it up to £600. I always clear my card every month and I am never short of money at the end of the month so I don't know why they offer me such a low limit. I only use it for purchases online for the security.

john2054

You know, despite what the clerks may say in store, the banks actually like for you to be in debt, because that is what makes them more money. Sure pay off the minimum, ideally more than this, but i don't pay off my cards all each month, and as i said, this doesn't make my score any worse.

I would consider spending more, and maybe even taking out a credit builder card, such as with capital one or marbles, which you can check with accuracy whether you will be eligible before hand.

Good luck.

deborah_sloan

I would but my card is no longer 0% and has charges if I dont clear it every month.

[Deleted User]

Continue to clear it in full each month. Paying interest is a mug's game and demonstrates a lack of disposable income.

john2054

Well one of my cards, has a charge like that, mbna, minimum payment £25 each month, which is having a laugh imho. My other cards, with pretty much all of the banks, are less than this. And my barclaycard and coop student account are the best rates, but you can't get these until you have built up a number of years of reliable and active history, on your accounts.

Good luck!

IAmWales

john2054 wrote: »

Well one of my cards, has a charge like that, mbna, minimum payment £25 each month, which is having a laugh imho. My other cards, with pretty much all of the banks, are less than this. And my barclaycard and coop student account are the best rates, but you can't get these until you have built up a number of years of reliable and active history, on your accounts.

Good luck!

Barclaycard do not require years of reliable and active history, they're far from the most picky of banks even for their 0% offerings.

Deborah, don't worry about the card affecting your mortgage application. The lender will be more concerned about how you manage your accounts (paying the account off each month is a positive) than the limit another lender has given you.

SnowTiger

deborah_sloan wrote: »

It doesnt have 0% on it though and I dont know if they would offer me much more to be honest. I got a letter about a year back that said they would put it up to £600. I always clear my card every month and I am never short of money at the end of the month so I don't know why they offer me such a low limit. I only use it for purchases online for the security.

You check to see if Nationwide is willing to up your card limit by logging in to your account.

There's an Amend credit card limit link at the left of the screen.

However, as your limit is already quite small, I suspect they'll only be willing to up it by a couple of hundred pounds at most.