Merge and close some Credit Cards?

2ilent8cho · 12 July 2018 at 8:59AM

After a relationship split up back in 2012 my finances got hit badly so i ended up with 5 defaults. All £48,000 debt was repaid within 4 years, and since then i have taken what ever credit cards i can get until my defaults go.

Between December 2018 and May 2019 the remaining 3 defaults still showing will fall off my credit file and coupled with my good history over the last 2/3 years with the credit cards i have at the moment i'm hoping summer next year i can get mainstream cards.

So in preparation would it be better for me to close some credit cards? I have

Barclaycard Foundation - £1600 Limit (34.9%)
Aqua - £3200 Limit (35.9%)
Tesco - £4200 Limit (10.9%)
Tesco - £1000 Limit (18.9%)
Capital One - £1250 Limit (34.9%)
Capital One - £750 Limit (28.9%)
Amazon - £900 Limit (34.9%)

I'm thinking of closing the Tesco £1000 limit and merging it with the other Tesco one to give me a £5200 limit on 10.9% APR , and closing the £1250 Capital One and merging it with the lower APR Capital One giving me a £2000 limit as i know both of these allow you to do this.

I'm just not sure what will look better next summer, more cards open over the time or having less cards with greater limits?

BillyBills · 12 July 2018 at 9:10AM

My god man, get rid of them all! Credit cards are a sure fire way to financial disaster. Only spend what you can afford to spend. I!!!8217;ve worked hard for 30 years and my success is largely due to me never owning credit card. I know it!!!8217;s impossible to quit them all now, but set yourself a target to be credit free within 10 years. You!!!8217;ll thank me fore it.

jimbo26 · 12 July 2018 at 9:23AM

Not particularly helpful advice BillyBills. Credit cards have their uses and used effectively and sensibly can save you money, and help build a history of managing credit well, which in turn will help you get cheaper credit.

OP - You don't state the current balance on each card. This info would be helpful to offer the best advice.

shiny76 · 12 July 2018 at 9:24AM

I wouldn't take it for granted that your current providers will simply 'merge' your credit limits to the cards with lower APRs.

What will look better is a reasonable total (across all cards) credit limit, compared to your income and modest utilisation of the credit available to you.

Merlin139 · 12 July 2018 at 9:26AM

jimbo26 wrote: »

OP - You don't state the current balance on each card. This info would be helpful to offer the best advice.

Are the % figures in () not showing what % of the credit limit is being used?

2ilent8cho · 12 July 2018 at 9:33AM

The % is the APR on that card. Only 2 cards with a balance is the Tesco 10.9% APR one with £3600, and Barclaycard with £170 . I have £7000 in my current account so i will repay in full once i get the statement. No Billy i will not get rid of them, i like to get extra Tesco Club card points from the CC and also in the event i get another £3000+ bill from the garage for my car(s) like i did this month (hence the balance on Tesco) it means i can spread it over a couple of months if needed.

madvicker · 12 July 2018 at 9:36AM

Merlin139 wrote: »

Are the % figures in () not showing what % of the credit limit is being used?

Considering that 3 of them are at 34.9% that seems too convenient. I'd say they were the card APRs.

Back to the post - that's a crazy amount of credit cards to have, and I thought having 4 myself was a lot. Personally I would cut the number down to 2-4 cards, are you able to justify to yourself exactly why you have each card? For me it is: 1 for everyday spending (paid in full), 2 wedding debt at 0% (pay fixed amount), 3 wedding debt at 0% (pay fixed amount), 4 emergency fund (can't save whilst paying off debts).

[Deleted User] · 12 July 2018 at 9:41AM

You can consolidate the Tesco cards to one card the same as you can with the Capital One cards.

DO NOT close the accounts otherwise they won't be able to consolidate them - when you request the consolidation it will close the card you are moving the limit from as part of the process.

2ilent8cho · 12 July 2018 at 9:46AM

madvicker wrote: »

Considering that 3 of them are at 34.9% that seems too convenient. I'd say they were the card APRs.

Back to the post - that's a crazy amount of credit cards to have, and I thought having 4 myself was a lot. Personally I would cut the number down to 2-4 cards, are you able to justify to yourself exactly why you have each card? For me it is: 1 for everyday spending (paid in full), 2 wedding debt at 0% (pay fixed amount), 3 wedding debt at 0% (pay fixed amount), 4 emergency fund (can't save whilst paying off debts).

My long term plan is to have a lot less, but with bigger limits. I want to try next year to get the Low APR 5.9% Barclycard but with a high limit so i can use it as a loan alternative or spreading something expensive say over 12 months, the BA American Express Avios card (as thats all i do with the Tesco is convert clubcard points to Avios) , and keep the Tesco one as as everyday spending where Amex is not taken.

jimbo26 · 12 July 2018 at 9:46AM

Consolidate the Cap1 cards, keep the Cap 1 with the lowest APR. Do the same with Tesco. Close Amazon and Aqua

[Deleted User] · 12 July 2018 at 10:22AM

How long have you had the Amazon and Aqua card?

Is the Aqua card a cashback card?

I would keep both as well as backups and also for the cashback on purchases on the Amazon card (and the Aqua one if it is a Cashback card)

Merge and close some Credit Cards?

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