Optimising Credit Card Applications

MartinLewisFan

Hey Folks,

I'm a newbie, so please forgive me if this has been covered elsewhere. (I did look, but didn't see the same sort question)

OK, here goes; the basics:

1. Good earner,
2. "excellent" credit record.
3. homeowner, clean credit etc....

I'd like to take advantage of the "cheap money / credit" options out there - with MSE's advice firmly in the mind, but here's the thing: I have 3 cards all with good sized limits (I think?) totalling around £80k

However, whilst they all have a balance of zero, they don't offer 0% of anything, so I'm looking to the forum for advice on this...

Shall I close these card accounts (a combo of visa - MC and Amex too), or perhaps lower the credit limit so that they stay open (which is good in terms of history) instead?

One of the cards I have has a limit of £35,000 (yep) - and unused. Does it help to keep this card "open" when I apply for a new deal with another bank - and they'll see that it has a high limit, thus indicating high-trust?

Any advice would be appreciated.

[Deleted User]

Personally, I'd keep them open. Perhaps lower or close a limit if accepted for another one.

bengalknights

This decision is entirely yours however if not utilised its give your a low debt ration and should thus better your chances of a discount card.

eskbanker

On the flip side, the fact that you already have access to £80K of credit will negatively skew the 'available credit to income' ratio and therefore potentially hinder your chances of getting even more credit, so it's not a given that your starting position would be seen positively by further lenders.

If you don't carry any balances, what do you see as advantageous about 0% deals, are you planning some stoozing perhaps, or big spending?

cjv

Before making applications for new cards, you may consider contacting your current providers to ask them if they can offer you a deal similar to what you are looking for.

You have nothing to lose by checking.:)

MartinLewisFan

ZX81 & bengalknights - good thinking!

eskbanker - contrarian view to the above, but again good thinking also!

To answer your question on (what do you see as advantageous about 0% deals) - I've got some purchases to make (house repairs etc) that I'd like to spread the costs over a number of months for, and cheap credit seems a reasonable to manage the initial outlay.

CJV - thank you for your comment - I did actually ask both Natwest and Barclays if they're willing to offer anything - and only the former came back with their "6.9%" deal.

Looks like the search will continue!

Ben8282

MartinLewisFan wrote: »

I did actually ask both Natwest and Barclays if they're willing to offer anything - and only the former came back with their "6.9%" deal.

The lack of any decent existing customer offers, especially from Barclaycard, would strongly imply that one or more of the following may apply
- your credit card accounts have not been well managed
- your credit files show a poor credit history
- you have high levels of interest bearing debt
It is impossible for anybody to predict how any further applications will go but based on the lack of existing customer offers I wouldn't hold out too much hope. Use an eligibility checker and see what happens.

MartinLewisFan

Hi Ben8282,

Not at all.

All accounts are always settled. Always.
My files experian (999), noddle, clearscore all high.
the debt ratio is pretty much at zero (or thereabouts, depending on when the accounts are settled).

No, it could be that I'm a rubbish negotiator, but more likely its something you mentioned (lack of existing offers - which is the whole point of my query!)

Do i stick with long terms banks offering me lots of credit, but no loyalty rewards as it were?

or dump them, and make applications to new banks that offer new customers long term 0% deals?

I'm going with the latter - but I just wanted to ask if there was any merit in holding on to cards with high limits (£80k), that are hardly used, and have a zero balance.

The eligibility checkers indicate very high acceptance. so perhaps my answer is there! :-)

Candyapple

I would close the Natwest one as they are rubbish, keep Barclaycard and also Amex.

Have you actually logged into your Barclaycard online account to see what offers you have? You should be getting them monthly:

https://forums.moneysavingexpert.com/discussion/5656094

Anthorn

Agree with ZX81: Part of your credit history comes from the length of accounts so if you close the card accounts and take new ones you'll have to start from scratch with the length of accounts. So keep them open and reduce the credit limits to reduce your overall available credit in preparation for taking on new credit. But that latter reduction in your available credit will not be instant since it has to filter through to your credit history.

enthusiasticsaver

Have you tried ringing them and asking if there are any 0% deals available? If not I would close two of them and apply for 1 new one at 0% as you have high limits. I don't think Amex ever do 0%. Do you use that one for cashback?