Credit Card Tarting and Managing Cards

FlamingoJo

Hello all,

I joined today so please forgive me. I have read previous posts which have helped me (flower77) with this query but I think I need specific answers to my situation.

Over the years I have followed Martin's advice on Credit Card Tarting. I have managed to clear a £6K debt on a Barclaycard and now have £2138 on my oldest (Nationwide) credit card that I've had since Jan 2013. There is no 0% Interest on this card. The current rate is 19.9%. I used this card at Christmas after a long time of not using this card. l only pay the min by direct debit as I was paying a few hundred pounds paying of my largest debt (Barclaycard)

Last year after clearing my Barclaycard credit card I began to tackle the Nationwide cedit card so I applied for a Capital One card in Dec 2016 to do a balance transfer. At the time it only allowed me to move about a third of the Nationwide balance. Since then I have cleared the debt transferred to the Capital One card (current rate 30.34%). So that brings me to the balance remaining on the Nationwide credit card. Today I was approved for a Halifax Credit Card 0% for 35 months, 3% balance transfer and 19.99% interest. I'm glad to say that I was able to transfer the full balance from my Nationwide card to the Halifax. I have set up a minimum payment of £200 per month. I have the opportunity to do O/T at work so any extra pay can be added as additional payments.

My question is how do I manage these three cards simultaneously? I dont want to have too many cards but realise this will happen when credit card tarting. When do I close accounts without affecting my credit score and which ones do I hold onto and use for relatively small purchases like groceries, a meal out, booking tickets for events and Uber account? (this is currently linked to my Capital One). Note: I've been paying the balance in full every month on my Capital One.

I'm aware that having too many credit cards with lots of available credit is not good. Nationwide have stated in March statement that they will increase my credit limit from £3200 to £5200. My credit limit on my Capital One is £3000 and the new Halifax will also be £3000. I have no intention to spend on the Halifax card whilst paying off the balance transfer.

I would really appreciate some advice on how to and in what order I should manage these cards in line with how I use them.

Many thanks.

[Deleted User]

Keep at least three. You seem to only have four cards and all have low limits. Keep the Halifax as your BT card and use the others for purchases, clearing in full.

If you're going to lose one, lose the Cap One.

Ignore your credit score. It's neither real nor relevant.

Candyapple

Barclaycard: Credit Limit £6k Balance £0
Nationwide: Credit Limit £5.2k Balance £0
Capital One: Credit Limit £3k Balance ?
Halifax: Credit Limit £3k Balance ?

Can you fill in the blanks please.

I would:
1. Nationwide only have 2 credit cards: The Select Credit Card or The Nationwide Credit Card - which one do you have? Call Nationwide and ask them if you can change your card to whichever one you don't have. If this is not possible - close the card.

2. If you have a balance on the Cap One card, clear it, and then close it.

3. Keep the Barclaycard as it is always best to have at least 1 back up card.

So by the end of this exercise you should have:

Barclaycard: Credit Limit £6k Balance £0
Nationwide: Credit Limit £5.2k Balance £0
Halifax: Credit Limit £3k Balance ?

So the Halifax card will remain untouched as that is the balance transfer card - make sure you have a DD set up to clear this monthly before the end date. The new Nationwide card will have 0% on purchases for 12 months so you can use this as your everyday card. And the Barclaycard will be the emergency back up card should your Nationwide one not work.

If Nationwide don't allow you to switch cards and keep the credit limit and you have to close it, then use the eligibility checker to find another 0% purchases provider:

https://creditcards.moneysavingexpert.com/?purchases&_ga=2.221764376.1412147938.1522836100-1517955997.1522836100

I'm surprised that you initially chose Cap One to use as a balance transfer - they are the last company I would have used and also that you went for the 35 month BT offer 3% fee with Halifax when MBNA are offering 36 months with 1.99% fee, or Barclaycard with 35 months and 1.35% fee.

FlamingoJo

Hi Candyapple,

Thank you so much for your reply.

In answer to your question:

Barclaycard: Credit Limit £6k Balance £0 (No longer have this card. Account was closed when I defaulted on a payment)

Nationwide: Credit Limit £5.2k Balance currently £2138 which will be transferred to the new Halifax card). This is a card that I kept in my draw.

Capital One: Credit Limit £3k Balance currently at £150 ( This is the card that I carry in my purse for small purchases and is also linked to my Uber account)

Halifax: Credit Limit £3k Balance 0 (The new account opened day before yesterday. This is the balance transfer card that will have the £2138 from Nationwide very soon)

Oh I checked, I have the Nationwide Credit Card not the Select..

Regarding the Halifax Credit card I have already set up a Direct Debit for £200 on each pay day.

I chose the Capital One account because at the time the eligibility checker showed 100% approval/acceptance. I now realise based on your reply and user zx81 that the interest is significantly higher. So it makes sense to pay the £150 on the card at the end of the month then close the account.

I think I chose the Halifax Credit card as they were offering 90 days as opposed to 60 days BT. I thought Halifax were only going to allow me to transfer £1200. My thoughts were pay off as much as i could by the 60 days and then the end of the BT date, transfer the remainder of the Nationwide balance. Surprisingly I was able to transfer the full balance from Nationwide to Halifax .

By the way, my Nationwide is the old card that I have had for many years so the 12 months 0% s a new customer I no longer have. I believe I have 3 months 0% on purchases on the new Halifax card. I don't intend to use the Halifax for spending. I will only be paying off the BT.

So I will eventually after closing the Capital One card have the Nationwide and Halifax.

FlamingoJo

I will defintely close the Capital One account.