Multiple MBNA cards?

WGGRACE

Hello there,

I've just bought a house and am looking to get a 0% spending card to help with a few bits we need to buy. Currently waiting for experian etc to update everything to my new address so everything matches properly before I start applying for things!

At the moment the longest 0% deal available for spending is from MBNA. I already have an MBNA card (0% balance transfer card I got when a previous 0% spend card expired). I have about £2.5k left on the card, have never missed a payment and have a big chunk of the 0% period left.

Will this affect my chances of getting a 0% spending card with MNBA (or affect my credit limit)? Is there some way I could reduce my credit limit on the balance transfer card to increase chances of getting a decent limit on the spend card?

Thanks in advance for your help!!

[Deleted User]

Lenders will take existing liabilities into account when you apply for additional credit.

What are your total limits and debts?

WGGRACE

Mortgage 110k
Credit card 2.5k

That's it

Apart from potentially some utilities but this would be under £100 total I think.

I previously had a Halifax CC too which has now been paid in full for several months.

Limit on the MBMNA is just over £5k (I don't need or want any of this over the £2.5k I owe them) and the limit on my Halifax card is just under £3k.

Should I think about cancelling the Halifax CC first?

Penelopa.Pitstop

I'm not sure you will be allowed to transfer from MBNA to MBNA unless you plan to take money transfer from new card. It's possible that MBNA will consolidate your credit limit. They did it to me, cut limit on my old card and moved rest of it to new card. I had to ask them to move the limits between the cards.

[Deleted User]

No. Your limits are very small, so unless your income is also very low, leave them as they are.

WGGRACE

How low is very low?

I'm in the mid to high 20s....

[Deleted User]

That'll be high enough not to be rejected immediately on affordability.

WGGRACE

So keep the Halifax CC for now then even if I'm not using it?

[Deleted User]

Yes. Otherwise you'll looked fairly stretched on a single card from the only lender who will trust you with credit.

WGGRACE

Ok, thanks for the advice!

Worth checking as it seems a little counter-intuitive to me! One certainly doesn't feel stretched owing 2.5k with over 2.5k spare but I appreciate the lenders have a different way of looking at things

End of the day it's good news as I should get at least something and as long as I don't miss any payments I'll be able to borrow more should I need to as I go on.

One last question - when would you close the Halifax CC? At what point does the downside of using up my credit limit outweigh the positives of stable financial relationships/having more than 1 lender wiling to lend to me?

The rate is rubbish now so I don't intend on ever using it - I get better rates spending on my mbna balance transfer card!

WGGRACE

So here I am again with a little follow up question.

I didn't close any old cards so still owe about £2.5k on a total credit limit of over £7.5k.

Didn't get another MBNA card in the end but a Barclaycard; which has given me a pitiful £800 credit limit which seems utterly pointless and no use for what I had planned with it. Should I ask to increase immediately or will this raise alarm bells?

Seems an incredibly pokey limit to someone with a 6 figure mortgage and 7.5k of credit already which isn't very heavily utilised...