Balance transfer done - do I reduce or close previous CC?

Vikster

Hi there,

I have successfully applied for a 0% balance transfer for 21 months, giving me more time to pay off my debt without incurring interest - huge thanks to MSE for flagging potential cards and deals. My question now is what do I do with the previous credit card & the £6k limit? I’m thinking my options are:
1. Keep card, use it now and again for small amounts able to instantly repay just to keep it active (good for credit rating?);
2. As above but ask to reduce credit limit so am not tempted to rack up debt again (does this negatively impact my credit rating or if so is that better than having £6k of credit available and not using it?);
3. Close account/ card;
4. Any other ideas?

Thanks in advance!

[Deleted User]

1, but without the instantly repaying bit. Pay in full when you get the statement - set up a full pay DD.

But if you have self control problems, then best to cancel it.

cymruchris

1. Pay in full by direct debit after statement.

MalMonroe

I kept my old card when I did a BT and it does come in handy when I want to buy something online but don't want to use PayPal. 

I have a direct debit set up to clear the balance every month so I don't have to do anything other than ensure I spend only what I can afford. Some months I don't use the card at all but I thought it would be a good idea to keep it just in case of emergencies. I have trained myself to think of it as a debit card really as I know that the money will leave my current account en masse at some point. I also keep a regular eye on my banking app. Which I think is invaluable for people like me who have in the past been very financially frivolous. Is it sad that I now know where every penny is, is about to be, or should be?

I had a DRO a few years ago and that was a bit of a smack in the face, it really made me sit up and take notice of what was happening with me and my finances. I learned a lot and I really don't want to disappoint myself by going back to my old spendthrift ways because at last I have realised that I just don't have that kind of income. In the past having a credit card was like having money in the bank to me. That's just so wrong.

I do have another credit card but I have frozen it and may even just close it in the future but the CC company is happy just to leave it at the moment. 

Apart from all that blether, what I really want to say is that zx81's advice is spot on!   

Vikster

Thanks everyone!