To close or not to close?
Comments
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Lenders can see your limits and the account age but not whom the account is with.
Ask MBNA if they can consolidate the 2 cards into one for a start.
Then do the same for Tesco.
Quite correct, so don't close your older cards, it makes no difference that they were builder cards, they don't see provider or APR ( I suppose they could work out the APR if you had a running balance).
If any cards have new customer BT offerings that appeal, you could consider closing so that they would be available for future BT offers as a new customer.
I'm not sure the utilisation will be as much of a concern for your remortgage as the level of debt that needs to be serviced, that will affect affordability.0 -
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Quite correct, so don't close your older cards, it makes no difference that they were builder cards, they don't see provider or APR ( I suppose they could work out the APR if you had a running balance).
If any cards have new customer BT offerings that appeal, you could consider closing so that they would be available for future BT offers as a new customer.
I'm not sure the utilisation will be as much of a concern for your remortgage as the level of debt that needs to be serviced, that will affect affordability.
Very true on all points0 -
They usually won!!!8217;t honour them and you!!!8217;ll lose them.
You!!!8217;ll need to ask and check regarding any existing promos before consolidating0 -
As they can see your limits, and your balances they can calculate your utilisation. They can also see if the balance is on a promo rate, and if you only pay the minimum each month.
Only ever close an old card if the fee structure changes. Ie its was free and they now want you to
Never lower a limit, it stuffs your utilisation. It does nothing for your affordability. A debt of £1000 is stilll a debt, but its a lot more damaging if your limit is 1100 pounds and not 11000 pounds.
Garys advice on consolidating your cards with MBNA and Tesco is worth looking at, in order to help make it easier to keep a track of things. Just make sure the consolidated card, has the same limits as the total limits on the separate cards. In an ideal world you want to keep the oldest MBNA / Tesco cards. Ask to do a deal on rates etc. Look at all options. MBNA are good with new offers for existing customers. However I have noticed that the offers dont come if your high across overall utilisation with all providers. At 47% overall you should still be getting offers.
Are alll your cards 0%? If not, clear the balances. No point in paying interest without a plan!0 -
I!!!8217;d be interested to hear views on my situation.
A year ago I had two defaults and a CCJ on file. So got a Vanquis and latterly a Barclaycard which were my first credit cards in years. One default has dropped off and I got the CCJ set aside and got an Amex and an HSBC card.
The main thing I want is two cards with a high enough limit to rent cars in Europe given the huge deposit. I want to collect Avios with Amex and of course want to build a good credit history to apply for a mortgage next year.
So, I have.
Vanquis - £2500 limit - 12 months old. Never really use it.
Barclaycard - £1200 limit - 8 months old. Use about £500/month and pay off in full
Amex - £7400 limit - 4 months old. Use about £4000 per month and pay off in full
HSBC - £3000 limit - 3 months old - barely use it because their systems are rubbish.
The Barclaycard and Amex are most user friendly. But Barclaycard won!!!8217;t increase my limit which i!!!8217;d prefer, then I can get rid of HSBC or Vanquis or both. Would closing Vanquis be a poor move given their my oldest card? Would closing HSBC be bad given it!!!8217;s relatively new? Should I just keep Vanquis/HSBC even if i!!!8217;m Using sporadically?
Is part of the reason Barclaycard aren!!!8217;t increasing my limit because I have a relatively high unused limits with other cards?0
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