Credit Cards - Close or Cut Up?

overspender22

So I’ve had a capital one credit card since about 2 years post-DRO. I managed it well, hoping to get credit limit increases so I could benefit from Section 75 on large purchases / holidays etc. But they never increased it. 

Since, I’ve been able to get a Vanquis account, a Zable one and another Capital One, but none have offered an increase. 

I’ve tried using them to budget for fuel / travel / food and it just doesn’t work for me. I’m better using spaces/pots on Starling for my situation. 

I’ve done a few bank switches and I was planning on using the money to pay them all off. 

Question is will closing them all help in the future when applying for a ‘normal’ credit card say with a bank? Or should I keep one open?

General_Grant

overspender22 said:

So I’ve had a capital one credit card since about 2 years post-DRO. I managed it well, hoping to get credit limit increases so I could benefit from Section 75 on large purchases / holidays etc. But they never increased it. 

Since, I’ve been able to get a Vanquis account, a Zable one and another Capital One, but none have offered an increase. 

I’ve tried using them to budget for fuel / travel / food and it just doesn’t work for me. I’m better using spaces/pots on Starling for my situation. 

I’ve done a few bank switches and I was planning on using the money to pay them all off. 

Question is will closing them all help in the future when applying for a ‘normal’ credit card say with a bank? Or should I keep one open?

Just on this point -
You do know that you don't have to put the total amount on a single card in order to get Section 75 protection on a purchase?

Marchitiello

If the existing provider are not going to give you an higher limit potentially your profile would not allow it anyway.

if you are planning to have zero balance anyway before applying for a new one, I would indeed suggest you close one or two cards but if the oldest card you have is only 2yo, then I would suggest you keep that one open

overspender22

General_Grant said:

overspender22 said:

So I’ve had a capital one credit card since about 2 years post-DRO. I managed it well, hoping to get credit limit increases so I could benefit from Section 75 on large purchases / holidays etc. But they never increased it. 

Since, I’ve been able to get a Vanquis account, a Zable one and another Capital One, but none have offered an increase. 

I’ve tried using them to budget for fuel / travel / food and it just doesn’t work for me. I’m better using spaces/pots on Starling for my situation. 

I’ve done a few bank switches and I was planning on using the money to pay them all off. 

Question is will closing them all help in the future when applying for a ‘normal’ credit card say with a bank? Or should I keep one open?

Just on this point -
You do know that you don't have to put the total amount on a single card in order to get Section 75 protection on a purchase?

Yes sorry I have previously used it to pay a holiday deposit but I just wish I could book the whole thing on it and then pay it off monthly. But thanks 

overspender22

Marchitiello said:

If the existing provider are not going to give you an higher limit potentially your profile would not allow it anyway.

if you are planning to have zero balance anyway before applying for a new one, I would indeed suggest you close one or two cards but if the oldest card you have is only 2yo, then I would suggest you keep that one open

Ok so keeping the oldest one will be better? I think cutting it down from 4 to 2 would be good. 

WillPS

Oldest is the most likely one to add value to your credit portfolio. Try to keep something small running through it month to month (i.e. Netflix) and pay in full by DD. Cut up the physical card if you think it'd be too much of a temptation, but make sure you keep a record of at least the PAN (16 digit card number, which often functions as your account number with card issuers).