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Credit card deal expired
TehRealJam
Posts: 1 Newbie
in Credit cards
Hi all, I am new here so please accept my apologies if this has been asked before, but I haven't really found the answer to my scenario whilst I was searching though myself.
Around 3 years ago I took out a credit card that had a 0% purchase deal for 24 months, and for the most part I would pay in full every month. Unfortunately due to a change in circumstances I found myself unemployed for a period of time where the card got used more, and the minimum (or slightly over) payments were being made and therefore not really 'clearing' the amount owed.
By the end of the promotion period I still had a balance remaining, (please note that by this point I was paying off large chunks at a time, and working full time) so I transferred the balance to a new card that had a promotional offer available. Since then the original card/account has never been used.
I have now nearly cleared the balance completely (I do have money available to pay the card off in full, but there are certain personal circumstances that may require me to have my savings available to me as instant access) and there has never been any charges, never missed any payments and therefore have never found myself in a situation where the 'debt' from the cards has ever 'cost' me any extra.
Apologies for the back story but here's the question: What do I do with the original card?
I have no other debt anywhere, the only money owed is on the current credit card which will be clear in the next couple of pay days. A couple of friends stated it was better for me to keep the original card going, even if its not being used as it would look better on my credit utilisation history, however I have just received an email that I will be sent out a new card soon as the original has expired. As the 0% purchase deal has ended, I have no use for the card any more.
Am I best to leave the card running until any balance from my current card has been cleared? Should I take out a new credit card before cancelling the original because of credit utilisation? Or should I just straight up cancel the card?
Under regular circumstances I am very clinical with how I focus my finances and will be returning to use my credit card and pay off in full every month as I used to, as long as I can find a 0% purchase deal again.
Any help I could get on this would be greatly appreciated, and I apologise if I have waffled on a bit on my first post!
Around 3 years ago I took out a credit card that had a 0% purchase deal for 24 months, and for the most part I would pay in full every month. Unfortunately due to a change in circumstances I found myself unemployed for a period of time where the card got used more, and the minimum (or slightly over) payments were being made and therefore not really 'clearing' the amount owed.
By the end of the promotion period I still had a balance remaining, (please note that by this point I was paying off large chunks at a time, and working full time) so I transferred the balance to a new card that had a promotional offer available. Since then the original card/account has never been used.
I have now nearly cleared the balance completely (I do have money available to pay the card off in full, but there are certain personal circumstances that may require me to have my savings available to me as instant access) and there has never been any charges, never missed any payments and therefore have never found myself in a situation where the 'debt' from the cards has ever 'cost' me any extra.
Apologies for the back story but here's the question: What do I do with the original card?
I have no other debt anywhere, the only money owed is on the current credit card which will be clear in the next couple of pay days. A couple of friends stated it was better for me to keep the original card going, even if its not being used as it would look better on my credit utilisation history, however I have just received an email that I will be sent out a new card soon as the original has expired. As the 0% purchase deal has ended, I have no use for the card any more.
Am I best to leave the card running until any balance from my current card has been cleared? Should I take out a new credit card before cancelling the original because of credit utilisation? Or should I just straight up cancel the card?
Under regular circumstances I am very clinical with how I focus my finances and will be returning to use my credit card and pay off in full every month as I used to, as long as I can find a 0% purchase deal again.
Any help I could get on this would be greatly appreciated, and I apologise if I have waffled on a bit on my first post!
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Comments
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Keepthe original card for emergency use only.
Perhaps every other month or so put one transaction on it to keep it live - making sure of course it is paid off by due date.0 -
If you've got a long term 0% purchase deal, why are you paying in full every month? No reason you can't but surely it negates the benefit of the 0% deal?0
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Some MSE people would say to keep spending on the old card, small amounts, paid by DD monthly in full and take advantage of that for a switching deal to get free cash from a switch that needs active DD
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