Accounts - Which to keep, which to cancel

ldhme

Just after some ideas on my accounts as I am currently busy tidying up my credit file in preparation for a mortgage application hopefully within the next 2 years. The remainder of my defaults from my previous DMP will drop off in January and before next year is done all debt will be gone, including my car and phone contracts etc. I also realise this looks like I didn't learn my lesson first time around but there were legitimate reasons as to ending up with this many bad credit accounts (end of relationship, job change, had a very difficult 2 years), glad to say my second encounter with debt went a lot better than the first.

Anyway, below are the accounts I have, the APR, how old they are and their status. Just wondering which ones to keep and which ones might actually damage my report.

Argos Card     - 29.9% - £2600 - 8+ Years          - Regular balance is 0, used only for BNPL (800ish), always paid in full on time

Capital One    - 29.9% - £500  - 3 years aprox     - Use up to about 450 a month, paid in full each month (done to avoid interest on the card, will stop doing this from November as it won't be needed)

Luma           - 35.9% - £400  - 2 Years 6 months  - 0 Balance

Vanquis        - 39.9% - £1750 - 2 Years 4 Months  - 900, Will be 0 next month

Aqua           - 34.9% - £2300 - 2 Years           - £2000 balance, 0% til December then will clear in full

Drafty         - 89.9% - £980  - 9 Months          - 0 balance, acts like an overdraft, interest only charged on days used

Fluid          - 34.9% - £900  - 1 Month           - £800, 0% til April then will clear in full

Halifax Overdraft - 49.9% - £250 - Not in use, also sacrifice £5 monthly bonus if used.

Any advice appreciated.

D3xt3r5L4b

They’re all fairly new with low limits so closing them will have little to no effect on a mortgage in reality. 

ddonq1412

If you were tiding the highest APR i would close down. Drafty, Vanquis then Luma. Aqua i would hold on to as that has a good credit amount and use for emergencies. The halifax OD is on the steep side as present. Are you using the credit cards to cover the 500 spend on halifax debit card to get the reward.

ldhme

D3xt3r5L4b said:

They’re all fairly new with low limits so closing them will have little to no effect on a mortgage in reality. 

I plan on closing them all eventually and replacing with a non sub prime card at some point anyway, if this is the case Ill only hang on to one or two for emergency use if it has little bearing on a mortgage anyway.

ddonq1412 said:

If you were tiding the highest APR i would close down. Drafty, Vanquis then Luma. Aqua i would hold on to as that has a good credit amount and use for emergencies. The halifax OD is on the steep side as present. Are you using the credit cards to cover the 500 spend on halifax debit card to get the reward.

Yeah Drafty needs to go, it came in really useful when I needed it but serves no purpose now. Luma was another one I would have chosen due to its low limit. I'd also jack Fluid off after the BT period. I'll consider closing Vanquis as I'll not use it over the others anyway.

The Halifax OD is actually 39.9 and is there incase I mess up and need it one month, never intend to use it deliberately. And as for the Halifax reward, the only reason I've been meeting the 500 spend requirement has been paying down cards. After the debts gone I'll struggle hit 500 quid debit card payments every month.

ddonq1412

get a revolut card, and cycle the money into it and back to halifax. costs 5 pound that is what i do each month now. as i started paying my credit cards off to hit reward level.

[Deleted User]

ldhme said:

I'd also jack Fluid off after the BT period

I never knew people found BT promos so exciting!