Get rid of old card account and replace with fresh one?

BenLangy

Hi everyone,

For years I had balances on three credit cards all with high balances, but I have now paid off thanks to the help of a family member. I have closed the two which had the smallest credit limits and that I had had for the shortest amount of time, and I also halved the credit limit on the remaining card.

However, I'm wondering if (for my credit rating) I would be better to cancel that remaining card and set up a fresh account with another provider? I intend to keep this card for emergencies only and won't actually have immediate access to the card itself. 

My thoughts are over whether replacing the card would hurt my credit rating because it will be a newly acquired credit facility, or if it would help my rating given that the old card had years of high balances (although I never missed any payments).

Any advice would be much appreciated

[Deleted User]

The best thing to build your credit history is a second card, keeping and using both regularly..

BenLangy

Deleted_User said:

The best thing to build your credit history is a second card, keeping and using both regularly..

Would having a couple of cards with a decent sized credit facility impact my ability to obtain a mortgage when required? I previously tried to apply for a consolidation loan but they said they could not provide me with the additional credit in the form a loan due to the high facility I already had on the cards (even though I would’ve been consolidating the debt and closing the card accounts)

D3xt3r5L4b

A consolidation loan is never a good idea. Even as a last resort. 

BenLangy

D3xt3r5L4b said:

A consolidation loan is never a good idea. Even as a last resort. 

The only reason for considering it was to reduce the amount of interest being paid compared to the cards, but thankfully I didn’t need one in the end

[Deleted User]

BenLangy said:

Deleted_User said:

The best thing to build your credit history is a second card, keeping and using both regularly..

Would having a couple of cards with a decent sized credit facility impact my ability to obtain a mortgage when required? 

Yes. It would show lenders that at least two other companies trust you with credit.

More would be better and also give you contingencies.

maxximus75

I would keep your current card (for the history) and just use it from time to time.

Obtaining a second card would give you a slight "ding" to your random credit score number due to a new account being shown but that will fade quickly.