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  • FIRST POST
    • Fireflyaway
    • By Fireflyaway 11th Jul 17, 5:42 PM
    • 1,745Posts
    • 1,889Thanks
    Fireflyaway
    Card confusion!
    • #1
    • 11th Jul 17, 5:42 PM
    Card confusion! 11th Jul 17 at 5:42 PM
    I recently took out a Tesco credit card with a limit of 250. Its a card to rebuild credit as my rating is not great.
    Then I applied for one via my bank and was accepted. I guess because my history with them is better. It has a limit of 1500.
    My question is - shall I get rid of the Tesco one? My clear score shows the fact that the Tesco card has a low limit as a negative factor.
    The purpose of all this is to improve my rating ready for a mortgage.
Page 1
    • zx81
    • By zx81 11th Jul 17, 6:02 PM
    • 16,855 Posts
    • 17,873 Thanks
    zx81
    • #2
    • 11th Jul 17, 6:02 PM
    • #2
    • 11th Jul 17, 6:02 PM
    No. Keep both. It shows stability and a back up is always required.

    Use one regularly and the other occasionally and clear both in full. Ignore the Clearscore advice.
    • Fireflyaway
    • By Fireflyaway 11th Jul 17, 10:20 PM
    • 1,745 Posts
    • 1,889 Thanks
    Fireflyaway
    • #3
    • 11th Jul 17, 10:20 PM
    • #3
    • 11th Jul 17, 10:20 PM
    Why do I need a 'back up'?

    I see your point about stability. I guess the limit will probably increase if I run it well. Just wish I took out the Lloyd's one first then I wouldn't have bothered about the Tesco one.
    • zx81
    • By zx81 12th Jul 17, 5:34 AM
    • 16,855 Posts
    • 17,873 Thanks
    zx81
    • #4
    • 12th Jul 17, 5:34 AM
    • #4
    • 12th Jul 17, 5:34 AM
    For when the other gets declined. Or closed.
    • PeacefulWaters
    • By PeacefulWaters 12th Jul 17, 8:04 AM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    • #5
    • 12th Jul 17, 8:04 AM
    • #5
    • 12th Jul 17, 8:04 AM
    Why do I need a 'back up'?
    Originally posted by Fireflyaway
    When your biting something important and discover your bank's systems have crashed bringing on the substitute card saves embarrassment.

    I see your point about stability. I guess the limit will probably increase if I run it well. Just wish I took out the Lloyd's one first then I wouldn't have bothered about the Tesco one.
    Does your Tesco card give you Clubcard points? That might be worth using more often then.
    • eskbanker
    • By eskbanker 12th Jul 17, 10:17 AM
    • 7,166 Posts
    • 7,617 Thanks
    eskbanker
    • #6
    • 12th Jul 17, 10:17 AM
    • #6
    • 12th Jul 17, 10:17 AM
    When your biting something important
    Originally posted by PeacefulWaters
    It could be needed anywhere, not just restaurants....
    • PeacefulWaters
    • By PeacefulWaters 12th Jul 17, 10:39 AM
    • 8,320 Posts
    • 10,638 Thanks
    PeacefulWaters
    • #7
    • 12th Jul 17, 10:39 AM
    • #7
    • 12th Jul 17, 10:39 AM
    It could be needed anywhere, not just restaurants....
    Originally posted by eskbanker
    I can't even put that down to Apple!
    • Fireflyaway
    • By Fireflyaway 12th Jul 17, 2:14 PM
    • 1,745 Posts
    • 1,889 Thanks
    Fireflyaway
    • #8
    • 12th Jul 17, 2:14 PM
    • #8
    • 12th Jul 17, 2:14 PM
    Never thought of that! True, my bank went down the other day. I couldn't access anything so yes I could have used that credit card.
    I think I do get Tesco points but I'm not planning on using it much.
    Thanks guys.
    • Heng Leng
    • By Heng Leng 12th Jul 17, 2:59 PM
    • 4,526 Posts
    • 1,416 Thanks
    Heng Leng
    • #9
    • 12th Jul 17, 2:59 PM
    • #9
    • 12th Jul 17, 2:59 PM
    I would personally ditch the Tesco one - assuming you have a card (debit or ATM) issued by someone other than the main bank.

    A card with a 250 limit is fine if that's all you can get or you have issues controlling your spending.

    The Tesco points as likely to worth pennies plus i'd hazard a guess it's got a high APR. Also, you are more likely to hit the credit limit and get charged 12.
    • takman
    • By takman 12th Jul 17, 6:03 PM
    • 3,326 Posts
    • 2,914 Thanks
    takman
    I would personally ditch the Tesco one - assuming you have a card (debit or ATM) issued by someone other than the main bank.

    A card with a 250 limit is fine if that's all you can get or you have issues controlling your spending.

    The Tesco points as likely to worth pennies plus i'd hazard a guess it's got a high APR. Also, you are more likely to hit the credit limit and get charged 12.
    Originally posted by Heng Leng
    Opening and closing a line of credit in a short period of time is not a good idea, especially when you want a good amount of history for a mortgage in the future.

    Using the card each month for one lot of shopping will mean it never gets near to its limit and paying it off each month will mean the interest rate is irrelevant. This will build up some good history and they will also be able to get a credit limit increase if they want one.
    • Heng Leng
    • By Heng Leng 13th Jul 17, 1:39 PM
    • 4,526 Posts
    • 1,416 Thanks
    Heng Leng
    Opening and closing a line of credit in a short period of time is not a good idea, especially when you want a good amount of history for a mortgage in the future.

    Using the card each month for one lot of shopping will mean it never gets near to its limit and paying it off each month will mean the interest rate is irrelevant. This will build up some good history and they will also be able to get a credit limit increase if they want one.
    Originally posted by takman
    Closing a single card (with a 250 limit) will make a negligible difference and will raise his/her average credit limit by about 50%.

    The only exception is if the card issuer raises the limit quickly.

    At 1 clubcard point for every whole 8, it's hardly worth the hassle for small spends.
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