Opening a new credit card before closing my old one.

c91

I currently have a Barclaycard credit card which I signed up for a few years ago when I was a student because I was banking with Barclays at the time. I seldom use it but I wanted to get it to try and improve my credit score. Now that I'm earning I want to get a different credit card which has a 0% offer so that I can use it to book a holiday (simply for the security that paying by CC gives - I already have the money available).

My question is, which is the best option for my credit score?

1. Cancel the Barclaycard and then apply for the new card.
2. Apply for the new card and then cancel the Barclaycard once I have the new one.
3. Pay for the holiday on the Barclaycard and then transfer the balance to my new card?

Thanks!

dresdendave

c91 wrote: »

My question is, which is the best option for my credit score?

1. Cancel the Barclaycard and then apply for the new card.
2. Apply for the new card and then cancel the Barclaycard once I have the new one.
3. Pay for the holiday on the Barclaycard and then transfer the balance to my new card?

Thanks!

You forgot option...


4. Completely ignore your credit score as it is a meaningless number made up by people who don't lend money.

Jaglad111

When I called to close my Barclaycard they threw all sorts of deals at me and a 35% limit increase. Give them a call and see how much they value your custom.

As your oldest card it is normally advisable to keep it open.

c91

Jaglad111 wrote: »

When I called to close my Barclaycard they threw all sorts of deals at me and a 35% limit increase. Give them a call and see how much they value your custom.

As your oldest card it is normally advisable to keep it open.

Thanks, I'll give them a call!

When you say it's advisable to keep my oldest card open, why is that? Would it have a negative impact if I kept it open and also get a new card if Barclays don't make a good offer?

Jaglad111

Keeping it open adds to the stability of your credit report. Use it for £20 a month to avoid dormancy. As said previously ignore the score, its the information that is important and average length of account is one of many factors.

PeacefulWaters

Ive got eight credit cards.

Always handy to have a back up.

c91

Jaglad111 wrote: »

Keeping it open adds to the stability of your credit report. Use it for £20 a month to avoid dormancy. As said previously ignore the score, its the information that is important and average length of account is one of many factors.

Ok, great. Thank you for your help!

2ilent8cho

The best thing to help your credit file is to keep the Barclaycard open. Creditors like to see stability so a credit account thats been opened for years with lots of history is good for your credit file. Keep it forever, just use it every now and again for things you are buying anyway then pay it off when the statement comes.