Close Vanquis Credit Card

[Deleted User]

Opened up a Vanquis credit card around June 2018 and it has been 4 months since then and I have built up some sort of credit history. Anyway, I am looking to cancelling it as it has an APR of 59% which is ridiculous. I barely use it for this reason.

I am thinking about cancelling this card because I've got 2 other credit cards with a higher credit limit (£800/£200) and the APR is lower (29%/34??). Anyway, would cancelling this Vanquis card have any long-term effects for me in the future? I'm 19, on a gap year and I'm not seeking anything major such as mortgage or anything. I just don't want it to affect me in let's say, 5 years when I want to buy an apartment in London or whatever.

[Deleted User]

It's probably worth keeping for now as you have such limited credit history.

[Deleted User]

Keep it. Use it. And pay it off in full each month following the statement.

Then you pay no interest and continue to build a credit history

[Deleted User]

Oh man, I hate paying it off in full (I mean, I know that's what you're supposed to do, I guess). It's such an ugly amount to look at and pay off

boo_star

Deleted_User wrote: »

It's probably worth keeping for now as you have such limited credit history.

I'd argue the opposite. It isn't worth keeping an account that's only a few months older than the rest.

The credit file impact will be minimal but it'll stop the OP borrowing at absurdly high rates if they're tempted.

binaryuniverse

Deleted_User wrote: »

Oh man, I hate paying it off in full (I mean, I know that's what you're supposed to do, I guess). It's such an ugly amount to look at and pay off

Doesn't have to be a large amount.
Buy a sandwich on it, each month. Let the direct debit take care of I'd also keep the card. You should be able to start moving up the ladder with 3 cards with decent payment history.

[Deleted User]

Then don’t spend so much.

If you can’t control your spending then close the account.

PRAISETHESUN

Since it sounds like you are trying to (re)build credit, I'd keep every account open for as long as possible until you have the luxury of being to pick where you can get credit from rather than just accept whatever you are offered. Closing the card probably won't hurt much at this stage since you don't have much history anyway, but I imagine it is already difficult enough to get credit so you might as well keep it open. The APR is ridiculous (my first card was 39% so I can feel your pain) but as has been mentioned if you pay off your balance in full (which you should be doing anyway when trying to build credit) then the interest rate won't matter.

Having 2-3 cards with a modest combined limit, and showing that you can manage them responsibly by making small purchases and paying them off in full will improve your history over time

System

Deleted_User wrote: »

Opened up a Vanquis credit card around June 2018 and it has been 4 months since then and I have built up some sort of credit history. Anyway, I am looking to cancelling it as it has an APR of 59% which is ridiculous. I barely use it for this reason.

4 months isn't sufficient time to build up any worthwhile credit record. Keep the card. The APR doesn't matter at all when you're using a card to build up credit history because you do normal purchases on it AND CLEAR THE BALANCE IN FULL EVERY BILL. Doing that you pay NO interest at all. You only pay interest if you carry some of the balance over to the next bill, i.e you don't repay in full every month.

Deleted_User wrote: »

Oh man, I hate paying it off in full (I mean, I know that's what you're supposed to do, I guess). It's such an ugly amount to look at and pay off

Then spend less on frivolous rubbish. Its only what it is because you're buying stuff. You'd be spending that much whether you paid on card or in cash/debit card. Only difference is that it coming in one big bill every month forces you to realise just how much you're blowing on crap instead of it going out in dribs and drabs paid in cash or debit card which doesn't force you to face up to your spending.

Craig1981

based on what you have said, i would cancel it - seems like you dont pay it off in full, so get rid of the temptation of the card with the high APR

if you are not going to use it whatsoever, then dont cancel it, but like others have said, if you are going to be tempted, close it