Should I close a credit account?

Firstly a short history of my finances. Had 2 CCJs, struggled to get a phone contract. 
I eventually got one and even a £1000 paypal credit limit. 
2 years ago, credit karma said I'm 100% guaranteed a virgin credit card at a better interest rate (26.9%) than PayPal (39.9%).

CCJs are no longer on my file and today was told I'd be accepted for a 10.9% card. My intention was to close the virgin one and apply for this. I've now been accepted for the much lower one. 

Paypal limit is £1000
Virgin £2000
Lloyd's £3000

Despite my ccj history I'm in a much better position these days. My credit card is now never near the max and I literally use it to split expensive stuff over 2 or 3 months and never pay the minimum. 
For example, I recently bought a guitar and amp for £900 on credit card, but immediately paid off £400 and paid thr remainder when payday came around. 

Ideally I'd like the limit all in one account but there's no way to tell them that's your intention plus they'd have to believe you. 

Will it hurt my credit to close the virgin account? As one day it may be better to not have the £6000 and just show Lloyd's I only have their £3000 and if needed one day in the future they could increase it.

Or would it be best to just have them open and unused.

You see so much online about not using credit can be more harmful than missing a payment, and that you have to stay within a certain % of your limit. 

Comments

  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,875
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    edited 12 October 2023 at 1:43PM
    Keep them.

    With so few cards, low limits and a poor credit history, the last thing you need is for lenders to think that you're having your cards shut down.

    Use them all at least occasionally to keep them active.
  • Keep them.

    With so few cards, low limits and a poor credit history, the last thing you need is for lenders to think that you're having your cards shut down.

    Use them all at least occasionally to keep them active.
    Thanks, may just put the shopping on now and then. 

    Poor credit history won't show up now. Rated excellent and that's without being registered to vote. No CCJs show on my file anymore.
  • PRAISETHESUN
    PRAISETHESUN Posts: 3,636
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    edited 12 October 2023 at 3:31PM
    Keep them.

    With so few cards, low limits and a poor credit history, the last thing you need is for lenders to think that you're having your cards shut down.

    Use them all at least occasionally to keep them active.
    Thanks, may just put the shopping on now and then. 

    Poor credit history won't show up now. Rated excellent and that's without being registered to vote. No CCJs show on my file anymore.
    Ignore the score/rating - focus on the data. Accounts stay on your files for 6 years, so any defaults/CCJs should drop off after that time. If it's been longer then that then they won't be visible to lenders. Not being on the ER is a big red flag that can jeopardise credit applications. I'd get that sorted, even if you don't intend to make use of your democratic rights.

    Personally I'd keep the accounts open and use them for planned spending only - assuming having them open isn't a huge temptation to spend unnecessarily. Pay them off in FULL each month. 


  • MorningcoffeeIV
    MorningcoffeeIV Posts: 1,875
    First Anniversary First Post Name Dropper
    Forumite
    edited 12 October 2023 at 3:38PM
    Keep them.

    With so few cards, low limits and a poor credit history, the last thing you need is for lenders to think that you're having your cards shut down.

    Use them all at least occasionally to keep them active.
    Rated excellent and that's without being registered to vote. 
    That should tell you something about how meaningless the CRA rating is.

    Lenders will make the decisions on your rating, and you still have some way to go to get into the to higher brackets.
  • Keep them.

    With so few cards, low limits and a poor credit history, the last thing you need is for lenders to think that you're having your cards shut down.

    Use them all at least occasionally to keep them active.
    Thanks, may just put the shopping on now and then. 

    Poor credit history won't show up now. Rated excellent and that's without being registered to vote. No CCJs show on my file anymore.
    Ignore the score/rating - focus on the data. Accounts stay on your files for 6 years, so any defaults/CCJs should drop off after that time. If it's been longer then that then they won't be visible to lenders. Not being on the ER is a big red flag that can jeopardise credit applications. I'd get that sorted, even if you don't intend to make use of your democratic rights.

    Personally I'd keep the accounts open and use them for planned spending only - assuming having them open isn't a huge temptation to spend unnecessarily. Pay them off in FULL each month. 


    These days they are only used for planned spending. As I said in the OP, it's just the expensive treats and they're never on there for more than 2 or 3 months. Or like next week I'm treating the other half to some shopping and a nice meal which will be on the credit card but paid off 7 days later on payday. 

    If I had my younger silly head on, I'd already have the 6k spent! 

    Thanks for the replies, I think I've got my answer now. It was just confusing when I was advised to try for more credit, I'd have just preferred it on one card but as I said you can't really have a 3 way chat with 2 lenders and tell one if I close the other can you add their limit.
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