Keep older credit card or ditch?
spinningsheep
Forumite 1K Posts
After what seems like a lifetime of being in a cycle of debt and a terrible credit rating, I'm finally on the way to getting out of it.
When covid hit, I was suddenly left in a position of living alone in a house I couldn't afford on my own, and the situation just got worse. I was living on my credit cards to get through to the end of the month. Thankfully I managed to maintain my minimum payments and avoid defaults or worse.
Fast forward, I'm now back living with my parents, saving for a mortgage & have paid off all my historical debts, my old satisfied CCJ falls off in early 2024, and old defaults fall off in Dec this year, and my situation seems bright in comparison to say 6 months ago.
I've managed to save £3000 in few months I've been back at home, and aim to have a minimum of £20,000 deposit saved by the back end of next year.
I have a total of 8 credit cards. All bar one paid off in full each month if I use them. I tend to use for small amounts, just to keep utilising them. Most have been open for a year or two and limits have been increased gradually.
Capital One - limit £1100 (oldest card)
Zable/Level - limit £1000
118118 - limit £1200 (second oldest card) currently has a £150 balance
Marbles - limit £450 (purely use for petrol)
Zopa - limit £300
Keebo - limit £200
Asda Money (Newest card and lowest APR at 26.5% and my first non targeted subprime card) starting limit £1000
My thoughts are to close Zopa and Keebo. Both tiny limits and they've done the job of helping me to build a better history. In fact Keebo doesn't even reflect on my credit reports at all.
I'm also minded to close the 118118 card as the monthly fee in lieu of interest had now increased to £20, even with a zero balance.
Would then keep Asda, Cap one, Marbles and Zable.
Would this be wise? Or would the 4 cards be a red flag come mortgage application time in early 2024? I appreciate this a while away but I want to be in the best possible position when the time comes.
Thanks in advance for any input.
When covid hit, I was suddenly left in a position of living alone in a house I couldn't afford on my own, and the situation just got worse. I was living on my credit cards to get through to the end of the month. Thankfully I managed to maintain my minimum payments and avoid defaults or worse.
Fast forward, I'm now back living with my parents, saving for a mortgage & have paid off all my historical debts, my old satisfied CCJ falls off in early 2024, and old defaults fall off in Dec this year, and my situation seems bright in comparison to say 6 months ago.
I've managed to save £3000 in few months I've been back at home, and aim to have a minimum of £20,000 deposit saved by the back end of next year.
I have a total of 8 credit cards. All bar one paid off in full each month if I use them. I tend to use for small amounts, just to keep utilising them. Most have been open for a year or two and limits have been increased gradually.
Capital One - limit £1100 (oldest card)
Zable/Level - limit £1000
118118 - limit £1200 (second oldest card) currently has a £150 balance
Marbles - limit £450 (purely use for petrol)
Zopa - limit £300
Keebo - limit £200
Asda Money (Newest card and lowest APR at 26.5% and my first non targeted subprime card) starting limit £1000
My thoughts are to close Zopa and Keebo. Both tiny limits and they've done the job of helping me to build a better history. In fact Keebo doesn't even reflect on my credit reports at all.
I'm also minded to close the 118118 card as the monthly fee in lieu of interest had now increased to £20, even with a zero balance.
Would then keep Asda, Cap one, Marbles and Zable.
Would this be wise? Or would the 4 cards be a red flag come mortgage application time in early 2024? I appreciate this a while away but I want to be in the best possible position when the time comes.
Thanks in advance for any input.
CC limits £20000
CC debt £283 (interest free until March)
Total low rate loan debt £3500
Almost debt free feeling, priceless.
Ex money nightmare, learnt from my mistakes and never going back there again, in control of my finances for the first time in my adult life and it feels amazing.
CC debt £283 (interest free until March)
Total low rate loan debt £3500
Almost debt free feeling, priceless.
Ex money nightmare, learnt from my mistakes and never going back there again, in control of my finances for the first time in my adult life and it feels amazing.
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Generally old, well managed credit is good, and multiple cards are fine. From what regularly comes up on here 4 is by no means excessive, (I have 10: 3 I use regularly just to have Amex, Mastercard and Visa, then the rest to are 0% cards either being payed off before the deal ends or already payed off but not yet closed). When I first got a mortgage I think I had 5 cards, when I remortgaged 6 or 7 - all were payed off/well managed and I had nothing negative like a default or ccj.
In your situation I think I would cut to the 4 you suggest now, then apply for a better card (cashback or higher limit if that is useful) when eligibility scores are good (direct with the provider) though only go for a new card if you are sure you will be paying off in full. In the 6 months before you plan to apply for a mortgage (early 2024 I assume) try to limit your credit applications as much as possible
Certainly get the 118 card closed ASAP.
Feel really positive now about my finances, first time in a VERY long time.
Once again thanks for the input!
CC debt £283 (interest free until March)
Total low rate loan debt £3500
Almost debt free feeling, priceless.
Ex money nightmare, learnt from my mistakes and never going back there again, in control of my finances for the first time in my adult life and it feels amazing.
no withdrawl fees for cash
no overseas transaction fees
no late payment fees
good exchange rate
no cash transaction fees
afew other things i can't recall
the funny thing is that at the time people with excellent credit history were complaining that they couldn't get the card and were being declined while people with less than pristine credit history were being accepted.
Lots of other cards have these advantages now but 118 118 were being critisised at the time for charging a fee for using a credit card rather than intertest so they launched this to counter the criticism.
in the not too distant futire i'm going to start cutting the amount of credit cards i have while i don't use the 118 card very often i don't know whether it will be on the list of ones to close.
I'd be minded to look for more advantageous cards if you can get them though, cash back or points is no bad thing
Will be closing 118 card (when I get home from my holiday I'm on now, £0 fee overseas in case of emergency so decided to delay it a month) and Zable immediately, already closed Keebo and Zopa. Will be spending nominal amounts and paying in full on my remaining cards I leave open to still show utilisation.
I've learnt the hard way what a poor credit history means and will not be headed down that path again.
CC debt £283 (interest free until March)
Total low rate loan debt £3500
Almost debt free feeling, priceless.
Ex money nightmare, learnt from my mistakes and never going back there again, in control of my finances for the first time in my adult life and it feels amazing.
CC debt £283 (interest free until March)
Total low rate loan debt £3500
Almost debt free feeling, priceless.
Ex money nightmare, learnt from my mistakes and never going back there again, in control of my finances for the first time in my adult life and it feels amazing.