Should I replace "Poor Credit" cards?

ShedDweller · 17 April 2018 at 5:31PM

Firstly THANK YOU one and all for the advice gleaned from these pages over the many years i've been lurking and learning from you all!!

A few years back i had a very poor credit rating, following advice on here, i've used a couple of "Poor Credit" credit cards (paid IN FULL!) to help build it back up again.

Now after all this time, I have a healthy credit rating and manage my money much more correctly! I'm thinking about the cards and how perhaps a couple of high street bank card would "look better" on my report.

From a purely credit rating perspective, is there any benefit to ditching the vanquis and luma cards i have and applying for a couple provided by high street banks to replace them?

Cheers!

[Deleted User] · 17 April 2018 at 5:44PM

The only benefit would be if the cards have better rates, benefits or limits, as no one sees the names of the cards.

Lenders will only look at the content of your credit files, never the pretend scores/ratings, so don't worry about any changes in the ratings if you do choose to take out additional cards.

shortcrust · 17 April 2018 at 5:56PM

I got some pleasure from replacing the credit building cards in my wallet with mainstream ones. I can see that makes this recent post of mine a bit hypocritical.:o

... I can only think that for some people the score itself is a thing of value. A high score is a badge or an accolade. I find that strange.

System · 17 April 2018 at 6:11PM

Replace the cards with ones that give you rewards for spending on them such as ones that offer cash back on spending and continue to clear them in full every month.

Fireflyaway · 17 April 2018 at 6:36PM

I agree with zx81 that the provider doesn't make a difference ( unless it's with a bank that you later apply for a mortgage with because the history with the card will impact your internal credit history with that particular provider). I know someone who has a tesco card and pays for everything with it. It's always paid in full but they get so many points to spend on meals out of hotel stays etc.

Dobbibill · 17 April 2018 at 6:49PM

Some sub-prime cards have a ceiling limit on how much credit they will provide. If either of your cards are like this with only a £200 limit etc then possibly consider changing it.
If you decide to get a different card maybe hold on the one with the longest relationship for a while longer - that can be viewed as a positive.

Ben8282 · 18 April 2018 at 4:16AM

Don't rush into cancelling anything. I think you need to build up the number of cards that you hold before you start closing accounts.
Your next step is to decide which card you really want to have and see if you can get it. You mention a high street bank card so perhaps you could start with the bank that you have your main current account with.
You don't say who the current cards are issued by and what the credit limits are so it is difficult to judge if they may be of some use to you in the future or not.
When you do get another card, use and continue to repay in full. Continue to use the other 2 cards occasionally though to keep them ticking over as it were.
If you are approved for a nice card, don't get carried away and start applying straight away for more. Wait a year. Apply for a 4th card.

Should I replace "Poor Credit" cards?

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