Best Solution for Next Step

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A_Frayed_Knot
A_Frayed_Knot Posts: 3,296 Forumite
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in Stoozing: free cash from credit cards
Hi, looking for advice re my next step.

I have a c/c - my 1st and only, almost maxed out, (£2000) all money lying in wait in bank account until 0% runs out in Dec this year.

I had ideas of using the cash then replacing some each month till Dec, then paying c/c off in full, but not sure if this is the right thing to do,
Should I be paying more than the minimum amount each month? in order to keep my credit rating good, in case I decided to apply to up my limit, or in case I applied for another card in the future.

What is best ?
Many thanks
Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
Now a Part Timer from 27.10.19

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  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    Having only one credit card used almost up to it's limit is not good even at 0%. You will find further applications very difficult until you repay a substantial portion of it.
    As for if you should spend the cash or not, only you know if you will have both the ability and willpower to actually replace the cash prior to expiry of the 0% promotion.
  • A_Frayed_Knot
    A_Frayed_Knot Posts: 3,296 Forumite
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    Would only apply for another 1 after 1st cleared off. Just wondering if being near the limit would harm my credit in any way, if so could pay off half just now and use the other half, no problems replacing it before due date.
    Always have 00.00 at the end of your mortgage and one day it will all be 0's :dance:
    MF[STRIKE] March 2030[/STRIKE] Yes that does say 2030 :eek: Mortgage Free 21.12.18 _party_
    Now a Part Timer from 27.10.19
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    A_Frayed_Knot wrote: »
    Just wondering if being near the limit would harm my credit in any way.
    .
    Shall we just say that it won't help your credit. It is not a positive factor. How harmful it may be will depend on the overall state of your credit files and what you intend to apply for.
  • Nebulous2
    Nebulous2 Posts: 5,116 Forumite
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    Depending on the company, you may get a limit increase if you pay off a few big chunks. I have a long-term MBNA money transfer card, which was pretty close to its limit. I paid it down to about 30% utilisation in several lumps and they've just given me a 50% increase in my limit.
  • Fireflyaway
    Fireflyaway Posts: 2,766 Forumite
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    I know when I checked that being near the limit is viewed as a negative factor on my credit report. It gives the impression you can't afford to pay it and are relying on credit. I
    Are you trying to improve you credit or just have a card because you want one? If it's the first then pay it off a chunk at time or in full. Then make regular purchases but always pay off in full. If it's the second, get rid of it! Why would anyone need 2 or 3 or 4 credit cards?
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Fireflyaway wrote: »
    Why would anyone need 2 or 3 or 4 credit cards?

    To avoid looking maxed out
    To keep BTs and your purchases separate
    To improve how lenders view you
    To take advantage of the different benefits of different cards.
    To have a back up in the event of non acceptance of issue failure.
    To be seen as having other options and therefore avoid reprices.
  • fwor
    fwor Posts: 6,810 Forumite
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    <spam removal post>
  • msallen
    msallen Posts: 1,494 Forumite
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    Fireflyaway wrote: »
    Why would anyone need 2 or 3 or 4 credit cards?

    You are aware this is the Stoozing board are you?
  • nic_c
    nic_c Posts: 2,928 Forumite
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    msallen wrote: »
    You are aware this is the Stoozing board are you?
    :rotfl:

    Though to be fair he may have come from the newest post link under Credit Card forum as this is a sub board.
  • Dan83
    Dan83 Posts: 672 Forumite
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    Late October/early November apply for a new credit card with a 0% balance transfer fee and 0% interest period. If you get accepted great, transfer it over, if not pay your current balance off. Simple
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