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Close un-used card down or keep it open - which is best?

db2016
db2016 Posts: 343 Forumite
Seventh Anniversary 100 Posts Name Dropper
edited 17 February 2020 at 5:32PM in Credit file & ratings
i have a new tesco card - 15m all round they call it. £3200 limit. balance is £500 or less a month, but i do have a planned £3k spend (for protection) in next month or so.
older vanquis (only one i could get post BR discharged sept 17). is limit £2250 and 0 balance (in fact an overpayment results it being £-50 aka a postive balance!)
and i also have a paypal £600 credit, unused.
is it best to close the vanquis. its never used (all payments coming from it are now on tesco). OR is it best to keep it open?
do i look sensible having more credit but low usage, or having access to less credit but a higher usage on that whats left?
credit files are slowly increasing since BR as expected. eg Vanquis was 39.95%, tesco is 26.9 i think and obvs higher limit so i must be doing something "right"

also BR mentioned above, the credit files DONT show it, am i under an obligation to get em corrected, or shall i just take this as a nice admin error in my favour?
all BR notices were served / and the subsequent discharge notices, and i definitely had it happen lol

Comments

  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 17 February 2020 at 5:42PM
    If it were me, I would hold on to the Vanquis card as it is always useful to have a card from both Visa and Mastercard.  It is also good to have more than one card, just in case there is an IT meltdown with one if the card providers.

    I would use the Vanquis for a few transactions each month, and then pay off the statemented balance in full each month.  This would mean your Vanquis transactions would all be interest free.

    Edit: According to Experian, "your bankruptcy will appear on your credit report for six years, or until you're discharged if this takes longer".
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

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  • db2016
    db2016 Posts: 343 Forumite
    Seventh Anniversary 100 Posts Name Dropper
    re the br, i DONT see it on the files (yes ive looked on all 3 cra's versions). and eg MSE has the Court data section and a smiley face and says, your fine underneath.
  • I'd say in your case as the Vanquis is the older card it's likely better for you to keep it open. It decreases your debt to available credit ratio and increases the average age of your accounts. Though of course you have to make sure you won't be tempted to use it, especially after putting the £3,000 on your Tesco card.
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