Cancel Credit Card or Not?

Jimmy9012

Hi folks,

I have a two year Barclaycard 0% interest credit card. Originally, the limit was 3k at 0%. After a year of having this card, last December, I pushed this up to 6k 0% as I needed something expensive...

I've always made the minimum payment, always, and have just paid the entire balance in full at the start of September 2017. Since then, the account has sat at £0 and has not been used. I've done that as I knew the 0% would have been ending soon, just no exact date.
0% as it turns out actually ends on the 23rd of Dec 2017. So not long at all. Even so, the card is still £0. So not an issue.

Obviously, I don't want to use it as I will eventually be charged 17% - 18% interest. So i'm sticking to my normal account as that is always positive and wont get charges.

My question, as I know i'm not using the Barclaycard anymore, should I close the account? I've read mixed things about that. Aka, its good to show you are trusted with a high amount of credit available/its not good as lenders see you have a high amount of unused credit (so im not sure what is correct).

I also have a Zopa loan of £5000, total repayable £5178 over two years, with around 4.2k left to pay. Again, that's not an issue and I make the repayments fine.

I don't need the Barclaycard... what should I do? Close it or leave it open?

I'm mostly interested in credit score, which would be best for that?

Ta,
Jim

[Deleted User]

Never be interested in your credit score. No one else is, as it's meaningless.

It's always worth having at least two or three cards. It gives you options, a back up and show other lenders that you're trusted.

Just keep them ticking along with occasional purchases, clearing in full each month.

Jimmy9012

Why ignore credit score? I've been told many times not to ignore credit score...

[Deleted User]

The credit scores the CRA give you are fictional and they provide a very poor guide to your credit worthiness.

Lenders will look at the data on your files. They don't see the made up numbers, but carry out their own credit scoring.

Jimmy9012

Such as 'he has a 5k loan with Zopa already, and has 6k Barclays credit available to him sitting at £0.'?

[Deleted User]

That's the kind of stuff.

Whether you make payments on time, go overlimit, owe a lot compared to your salary, whether you are maxed on your card.

Not whether someone who doesn't lend money thinks you're a five and a half out of a squillion.

Jimmy9012

What is the point of the credit score, if that's not used? I take the point on though of course...
So, buy something on the 1st, pay on the 2nd type of thing and keep the card active?


Ideally, id like to cancel this one, and open a new 0% elsewhere... whats the chances of that being accepted when I have 5k owed to Zopa and a credit card with £0 on it, but an allowance of 6k?

[Deleted User]

The scores are designed to keep people interested in their credit files and to pay for score monitoring services. People love numbers, especially ones that go up and down from time to time.

If it's the only card you have, or even one of two, apply for another before closing anything. The limit is low, and you won;t be carrying a debt on it.

Jimmy9012

The fact that I have the 5k loan and an existing credit card wont affect being accepted?

[Deleted User]

It will show you're not spending all your available credit. If you cancel the card, you will be.

It concerns lenders when you look desperate.

Jimmy9012

I see, thank you zx.