Credit card replacement advices

pilotamx

Hi there,

I am looking for some practical advices for swapping my credit cards. I actually have the following:

- Amex Charge Card
- HSBC Visa Credit Card: no debt, balance always paid in full
- Barclays Platinum Visa: around £1700 debt, I repay nearly £300/month and it's interest free (until Jan 2021)

I want to either cancel/swap the HSBC card. I know one option is to use the Barclays only but I cannot set to continue repay the outstanding debt + pay in full new transactions. Moreover, I applied for that card only for use the interest free against an expense.
Another option can be to apply for one Barclays card and then close the actual one (debt will be repaid anyway in the next 6/9 months).
Third option is to apply for one of many other credit cards available on the market: I do not need a credit card, a charge card would be ok; I value more the service and the app rather than the card.

Any comment?
I have read it's not always a good move to reduce the number of credits I have as they might lower my credit utilization ratio, but probably it's a wrong/misleading information.

Thanks
LM

stevenhp1987

Which Amex Charge Card is it? Plat/Gold/Green?

I assume you do most of your spending through that earning MR with the HSBC Card being your backup?

Perhaps you should look at getting a cashback non-amex card to replace that?

Here's a good list if you're looking for Airmiles/Hotel points: https://www.headforpoints.com/category/credit-card-reviews-series/

Here's another list: https://www.moneysavingexpert.com/credit-cards/best-credit-card-rewards/

Do you travel? A good FX-Free credit card is always useful for hotel / car deposits etc. Something like Aqua Reward, Barclaycard Rewards, Halifax Clarity etc.

Since the Hilton Barclaycard was pulled I don't believe you're allowed to apply for a second card anymore. I think you'd have to cancel and wait 6 months for a Barclaycard.

In terms of your current Barclaycard - Is it 0% Balance Transfer or Purchases. If the former, I wouldn't spend on it at all! You'll be charged interest on the spend portion each month as you won't pay the balance off in full.

pilotamx

I have a platinum card (not the cashback - the real platinum )

Yes I travel, and normally use my starling for expenses abroad (particularly for cash withdrawal).

I spend around £3500/year using my HSBC VISA

I am actually looking online and probably what I want, as a backup, is a Fintech card. What about Tandem or JaJa?

[Deleted User]

If you do get another card, hang to the others.

stevenhp1987

If you have the Amex Plat then you probably should be reading HeadForPoints! Lot's of information over there.

Do you travel enough to make use of that hefty £575 annual fee?

Are you eligible for HSBC Premier, I'd imagine so if you're carrying a Plat? Their Premier Cards are a very good non-Amex alternative. Personally I use Virgin Reward+ as backup (for now...).

Tandem have pulled their main Credit Card (only the poor credit card exists now). JaJa has no cashback? I'd choose a card that earns cashback rather than a "fancy app".

I use Starling for FX-Free currency withdrawals. Others will recommend Monzo. Starling is better for FX-free currency withdrawals as it has no limits while Monzo charges after £200 in a month.

pilotamx

I probably travel less than you expect, but I value that card with: lounge accesses for 4 (it's one guest for me and one for my partner), insurances, particularly medical/car/travel, few free matches in the AmEx Lounge at Brighton Stadium. I might agree that today the £575 is borderline for my usage, but I am still in (I will pay this fee from next renewal).

I am not eligible for HSBC Premier, I am HSBC Advanced and I a even considering to move it all to Starling.

You're right with cashback, but the about £15-£20 cashback I might get with my spending doesn't really trigger me to cashback.

I agree with your view of Starling.

[Deleted User]

What are you looking to achieve?

Have you looked at the HSBC rewards card - it's not great, but it's better than nothing.

pilotamx

!!! wrote: »

What are you looking to achieve?

Leaving HSBC first.

[Deleted User]

pilotamx wrote: »

Leaving HSBC first.

And what does that achieve?

What's your long-term plan here?

Ben8282

I know one option is to use the Barclays only but I cannot set to continue repay the outstanding debt + pay in full new transactions.
Well don't use the Barclaycard for new transactions. If you don't want to use the Amex platinum then use the HSBC visa credit card. Also, FYI, Barclaycard is one of the few providers that will not charge you interest on new purchases provided that you repay the total of the new purchases in full and the minimum payment due on the 0% promotional amount each month.
If you are experiencing difficulties in repaying your credit cards in full each month then I would suggest that perhaps you should reconsider if a charge card with a £575 annual fee is right or you. That £575 would go a long way to repaying your credit card debt. If you can't afford to repay your minimum repayments on your 0% debt (which are not £300 per-month are they - it is you who chooses to pay £300 per-month) in addition to repaying your new purchases in full then you would pay interest whatever credit card you used and would have a big problem if you used the Amex charge card.
Another option can be to apply for one Barclays card and then close the actual one (debt will be repaid anyway in the next 6/9 months).
Not possible to apply for a second Barclaycard and unnecessary - see above.
Third option is to apply for one of many other credit cards available on the market:
It is really difficult to understand what you are asking here. IF you want a new credit card, then look round for something that meets your needs. What are you looking for in a new credit card? 0% purchases offer for an extended period? Rewards? Cashback? Fee free foreign transactions? You decide what would benefit you the most and then find a card which offers what you want
I value more the service and the app rather than the card.
This made me laugh.
I have read it's not always a good move to reduce the number of credits I have as they might lower my credit utilization ratio, but probably it's a wrong/misleading information.
Assuming that you mean reducing the number of credit cards that you hold then no it is not wrong or misleading information.

pilotamx

To clarify: I am not into any financial difficulty. I purposefully applied and got the 0% int. from Barclays to spread a single expense over time. It's just financial planning. £300 is just a number I decided I can put to close that debt. As I have interest free until Jan 2021, I can probably make the payment as low as £130/month. Either way, I have no issue with that amount which I can repay in full even now.

Amex charge card with £575 is a card I use and I can justify that fee to myself. Whether it's worth or not in general, I guess there is another thread.

I probably wrongly explained the situation and all the details misled the topic. I just want to close my HSBC Credit Card in favour of a new one where I value more the app/technology and the service (HSBC app is rubbish and they don't fully support openbanking API).

I do not collect rewards and, based on the money I spend yearly on it, £15-£20 cashback/year are barely nothing. I do not need any foreign FX convenient fee, as I use my Starling Debit card for FX txns.
I just want to have a VISA/Mastercard in addition to my AmEx (for where and when AmEx is not accepted) and I want a credit card as I prefer to use a credit card rather than give around my debit card.