Should I Close an Unused credit card?

2319WeHaveA2319

Hello, 
Quick question, I have a poor credit score and I have been trying to get a better deal. 

I currently have 3 credit cards all with a 0 balance. 
Aqua 950 Limit- I would use this daily and pay in full 
Vanquis 250 Limit- Barely used as rates and limits were both given to me after signing up and both are very poor.
Barclaycard 400 Limit- Newest Addition - the lowest interest 

Plan to move all my 'usual' spending to Barclays, and if I had the same limit as Aqua I would stay with the one. I only have these for emergencies. 

Anyways to the point.. 

I plan to Close the Vanquis, it's pointless, missing features such as google pay, an awful rate ... 59% I think, and a poor limit. I have read online however that closing it my go against me and keeping it open but with a 0 balance will be a better option for me. How true is this? 

Trying to fix my past of bad credit, improve it, and one day I would like a similar limit to Aqua but with a top-line rate... One day I will get there. 

The aqua I have had for some time, however the Vanquis about 1 month, and the Barclays 1 week. (The Vanquis was a bad choice and Barclays better than Aqua) .. I appreciate two applications together will go against me but the damage has now been done.. I have no immediate plans for any credit anywhere else for anything.

[Deleted User]

If you only have three, all with very low limits, keep them all.  Use each at least occasionally to stop them from going dormant, clearing in full when you get the statement.

APR should never be a concern on a credit card, unless it's 0% promo, as you'll always clear in full.

2319WeHaveA2319

I was tempted to put my Netflix on one, and Amazon Prime on the other and then pay in full monthly.. would it increase my credit rating?

[Deleted User]

You don't have a credit rating.  Just credit history, The card usage would show on your files, showing that you have two or three active cards.

It'll stop them going dormant and reduce the chance of closure.

[Deleted User]

The rates on the card are irrelevant if you pay back in full.

Spend on all 3 cards, pay in full every month by direct debit, give it a couple of years to build a solid history

[Deleted User]

Get rid of Vanquis - use the two cards with better limits. 

Ebe_Scrooge

Deleted_User said:

Get rid of Vanquis - use the two cards with better limits. 

Why do you say this?  The better approach, as noted by other posters, is to use all 3 regularly and always pay in full.  With such low limits anyway, there's no reason at all to get rid of any of them.

Alex9384

Have you tried to increase credit limit on any of those cards?

Nowadays you don't need to talk to anyone, just try it manually in the app or online banking. You can usually try that every 6 months (when I maxed out my card with 0% money transfer offer, I was able to increase the limit after just 3 months from the previous increase). Just make sure you always put exactly the same info about your income, etc., so there are no discrepancies.

[Deleted User]

Ebe_Scrooge said:

Deleted_User said:

Get rid of Vanquis - use the two cards with better limits. 

Why do you say this?  The better approach, as noted by other posters, is to use all 3 regularly and always pay in full.  With such low limits anyway, there's no reason at all to get rid of any of them.

The Vanquis is almost not worth having anyway with that limit and rate.

Better to have more throughput on the two other cards as they are more long term options. 

Alex9384

Deleted_User said:

The Vanquis is almost not worth having anyway with that limit and rate.

Better to have more throughput on the two other cards as they are more long term options. 

I would say it also depends on which account is the oldest. I would most likely keep that one. Of course, if one was open for example in Sep 2020 and the other one in Oct 2020, that's almost no difference, but if one of them is significantly older, I would keep it. And like I said, I would try if I can increase limits manually.

[Deleted User]

Oldest card is good for showing stability, the rates are irrelevant if paid off in full and low limit won't change if it's never used