credit card shuffle and credit card advice please

Falco_Girl

Hi all

I have several credit cards and have paid off all but two, one is currently on 0% BT rate and the other is on the variable rate of the day.

Is one supposed to cancel cards one doesn't use or keep them with nothing on and then try and ask for a better rate?

Maybe I am just being thick?

Help gratefully received.

Cheers

molly1706

I am also a bit confused about this, on one hand I have read that long running credit cards and a lower percentage of credit taken to available credit, both improve your credit score on the other hand I have read that You need to lower your available credit to be able to get new credit at a 0% rate.

don9999

Advice in this area can differ from person-to-person.

Many people believe that you should cancel the cards once you have finished with them (presumably when the promotional period has ended, and you have paid off the full balance). In this way, your credit history will show a lower amount of total available credit, and 'new' suppliers 'may' then consider granting you a new card with an appropriate credit limit. Conversely, if you retain the credit card (although with zero outstanding balance, and not being used), a new supplier 'may' decide that you already have a large amount of available credit, and therefore not give you a new card, or give one with a low limit. I can understand the logic here, since if you already have a large available credit, then you could 'potentially' take up all that credit, and get into trouble....

However, in 'my' experience, I have often kept cards well beyond their promotional period. Especially in these days, when new credit 'may' be harder to come by, it can often be useful to have decent credit limits already available. In this case, if you need new funds, contact the credit card and ask what promotions are available - I have found that these change quite regularly, and providers will often offer new promotions to existing customers. For example, I had a Halifax creidt card with a £10,000 limit, which I used for about 1 year at 0%. I then cleared the balance and left it for quite a few months. Time-to-time I would contact the bank and ask what promotions they were able to offer. At some point, they were able to offer me something like 9m at 0% (with a fee). So I took it up, transferring balances from other cards etc...

Hope this helps with the various options.

Cheers,
Don

Falco_Girl

thanks Don that is really helpful!

much appreciated!