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Cancel or keep a credit card?
J892
Posts: 4 Newbie
in Credit cards
Firstly, apologies if this has been answered before but I'm finding a few conflicting opinions on this.
I've had a credit card for the past 2 years or so that had 0% interest on purchases. This ran out in march and I paid off the full amount before the offer ran out so my card now exsists with 0 balance. I'm looking to apply for a mortgage in the near future so want to build my credit score; I was going to apply for a new credit card with 0% interest but I've read reports saying having credit cards that are unused can affect your credit score negatively or positively in the eyes of a lender?
I basically want to know
1) Should I cancel my credit card or leave it open but unused?
2) If I do cancel my card should I do it before I apply for a second credit card? My original credit card was with Barclays and if they're offering a similiar deal would applying for a second Barclays credit card affect this?
Thankyou in advance
I've had a credit card for the past 2 years or so that had 0% interest on purchases. This ran out in march and I paid off the full amount before the offer ran out so my card now exsists with 0 balance. I'm looking to apply for a mortgage in the near future so want to build my credit score; I was going to apply for a new credit card with 0% interest but I've read reports saying having credit cards that are unused can affect your credit score negatively or positively in the eyes of a lender?
I basically want to know
1) Should I cancel my credit card or leave it open but unused?
2) If I do cancel my card should I do it before I apply for a second credit card? My original credit card was with Barclays and if they're offering a similiar deal would applying for a second Barclays credit card affect this?
Thankyou in advance
0
Comments
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It depends on your balances, limits and income, as well as your history.
No lender will ever look at your score, but they'll look at the risk of lending you more money. What are your circumstances?0 -
I have a full time job, a car on finance and my phone bill thats it, no loans and only had the one credit card.0
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In that case, you should keep it and consider getting another one or two as back up. Make sure you use them all from time to time, clearing in full each month.
Clearing the car finance will have the biggest beneficial impact.0 -
Thankyou. If I make a purchase on my original credit card (that now applies interest) can I pay the amount off before the payment is due to avoid any interest charges? Not sure how and when the interest is applied, is it when a payment is due or immediately when a charge is applied to the credit card?
Sorry for all the questions I have very little experience with these things!0 -
You pay the balance once you get the statements and before the due date.
A full pay DD is the easiest way.0 -
Brilliant thanks for your help!0
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