Closing credit builder credit cards

Orees

Hi 
im looking to close down my credit builder credit cards. I recently got a balance transfer with Virgin card, 18 months 0 interest and and am looking to do a balance transfer to amex after the 18 months either British airways or Amex direct.

i dont want too much credit be the reason to be denied an Amex card if that is even a thing.

current cards
capital one credit builder limit £450 since 2016
vanquis credit builder limit £850 (past month increased) since 2019
virgin 0% balance interest £1500 since March 2022

Is it wise to close the credit card builders or just the lowest amount (capital one)? I have had that one the longest but the credit is the lowest.

all credit cards are fully paid off so no outstanding balance. 

Please advise as i keep reading things and im very confused to close or not to close..Thanks in advance!

Ebe_Scrooge

Those are all pretty low limits.  So in terms of your available credit, they will have a negligible impact on future applications.  Long-standing, well-managed lines of credit are generally seen as a positive, so I'd be tempted to leave them open, use them once in a while to keep them active.

Orees said:

am looking to do a balance transfer to amex after the 18 months either British airways or Amex direct.

Just be careful not to assume you'll be able to get another BT card after the 18 months.  If you are able to BT then great - but make sure you've got plans in place to repay the existing card in full when the promotional deal expires, there's no guarantee you'll be able to transfer any outstanding balance.

Dobbibill

Orees said:

all credit cards are fully paid off so no outstanding balance. 

Hi Orees - welcome to the forum.

If all cards are paid off with no outstanding balances - what is the purpose of the BT card? 

Orees

Ebe_Scrooge said:

Those are all pretty low limits.  So in terms of your available credit, they will have a negligible impact on future applications.  Long-standing, well-managed lines of credit are generally seen as a positive, so I'd be tempted to leave them open, use them once in a while to keep them active.

Orees said:

am looking to do a balance transfer to amex after the 18 months either British airways or Amex direct.

Just be careful not to assume you'll be able to get another BT card after the 18 months.  If you are able to BT then great - but make sure you've got plans in place to repay the existing card in full when the promotional deal expires, there's no guarantee you'll be able to transfer any outstanding balance.

Hi yes all are paid off and the BT card has 500 outstanding which will be paid off by end of term for the BT. 

I am wondering if i close the other cards it will make me more eligible to transfer my balance aa my credit is lower and credit use is low .. with 3 active cards may be leas attractive to lenders then 2 cards well managed

Orees

Dobbibill said:

Orees said:

all credit cards are fully paid off so no outstanding balance. 

Hi Orees - welcome to the forum.

If all cards are paid off with no outstanding balances - what is the purpose of the BT card? 

The BT card was for the benefits of Virgin credit card as the credit builders dont have any benefits associated with them.  I spend on both card to transfer the outstanding to get a Virgin card.

the future BT card i would want is Amex due to its benefits and miles.

[Deleted User]

With such limited credit, keep all your cards open.

cymruchris

As above - with three cards - and still relatively low limits - keep them open - keep spending and paying in full putting some transactions through on each of the cards every month. At your stage of the journey, stability is beneficial. I started in 2016 with a Vanquis card with if I recall a £400 limit, and it was my only card (Nobody else would accept me). I still have that Vanquis card, albeit with a £2000 limit (I know they do higher limits - but I scaled back using the card to one/two transactions a month to keep it alive). I've kept that card as it's my oldest card - and banks like longstanding accounts.

I'm now a few years down the line, and I have cards with the likes of Virgin, HSBC, Nationwide etc. and an overall credit limit in the region of the mid £30k's - still lower than many - but it takes time to build trust. It's a marathon, not a sprint. (And at this stage of my journey - Amex's own eligibility checker still only gives me 5/10 on their estimate of success - so I haven't tried for one yet)

[Deleted User]

You keep talking about doing a balance transfer to Amex, are you sure that is what you want to do? Do you simply mean you want an Amex card to do your normal spending with?

Orees

cymruchris said:

As above - with three cards - and still relatively low limits - keep them open - keep spending and paying in full putting some transactions through on each of the cards every month. At your stage of the journey, stability is beneficial. I started in 2016 with a Vanquis card with if I recall a £400 limit, and it was my only card (Nobody else would accept me). I still have that Vanquis card, albeit with a £2000 limit (I know they do higher limits - but I scaled back using the card to one/two transactions a month to keep it alive). I've kept that card as it's my oldest card - and banks like longstanding accounts.

I'm now a few years down the line, and I have cards with the likes of Virgin, HSBC, Nationwide etc. and an overall credit limit in the region of the mid £30k's - still lower than many - but it takes time to build trust. It's a marathon, not a sprint. (And at this stage of my journey - Amex's own eligibility checker still only gives me 5/10 on their estimate of success - so I haven't tried for one yet)

Thank you this is very helpful. 

Orees

Deleted_User said:

You keep talking about doing a balance transfer to Amex, are you sure that is what you want to do? Do you simply mean you want an Amex card to do your normal spending with?

Hii
yes i understand now i dont need a balance transfer and will have to see my eligibility for Amex over time for a card without balance transfer. 

Yes im looking to get Amex for everyday spending to take advantage of the miles.