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  • FIRST POST
    • 2ilent8cho
    • By 2ilent8cho 12th Jul 18, 8:59 AM
    • 54Posts
    • 18Thanks
    2ilent8cho
    Merge and close some Credit Cards?
    • #1
    • 12th Jul 18, 8:59 AM
    Merge and close some Credit Cards? 12th Jul 18 at 8:59 AM
    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?
Page 1
    • BillyBills
    • By BillyBills 12th Jul 18, 9:10 AM
    • 25 Posts
    • 26 Thanks
    BillyBills
    • #2
    • 12th Jul 18, 9:10 AM
    • #2
    • 12th Jul 18, 9:10 AM
    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
    • By jimbo26 12th Jul 18, 9:23 AM
    • 528 Posts
    • 319 Thanks
    jimbo26
    • #3
    • 12th Jul 18, 9:23 AM
    • #3
    • 12th Jul 18, 9:23 AM
    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
    • By shiny76 12th Jul 18, 9:24 AM
    • 461 Posts
    • 486 Thanks
    shiny76
    • #4
    • 12th Jul 18, 9:24 AM
    • #4
    • 12th Jul 18, 9:24 AM
    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
    • By Merlin139 12th Jul 18, 9:26 AM
    • 5,301 Posts
    • 20,753 Thanks
    Merlin139
    • #5
    • 12th Jul 18, 9:26 AM
    • #5
    • 12th Jul 18, 9:26 AM
    OP - You don't state the current balance on each card. This info would be helpful to offer the best advice.
    Originally posted by jimbo26
    Are the % figures in () not showing what % of the credit limit is being used?
    3.975 kWp PV SolarEdge System South Facing 10% Shading Installed 21 May 2014 Located in Mid East Yorkshire.
    • 2ilent8cho
    • By 2ilent8cho 12th Jul 18, 9:33 AM
    • 54 Posts
    • 18 Thanks
    2ilent8cho
    • #6
    • 12th Jul 18, 9:33 AM
    • #6
    • 12th Jul 18, 9:33 AM
    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
    • By madvicker 12th Jul 18, 9:36 AM
    • 146 Posts
    • 100 Thanks
    madvicker
    • #7
    • 12th Jul 18, 9:36 AM
    • #7
    • 12th Jul 18, 9:36 AM
    Are the % figures in () not showing what % of the credit limit is being used?
    Originally posted by Merlin139
    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).
    • Gary_Dexter
    • By Gary_Dexter 12th Jul 18, 9:41 AM
    • 2,596 Posts
    • 1,457 Thanks
    Gary_Dexter
    • #8
    • 12th Jul 18, 9:41 AM
    • #8
    • 12th Jul 18, 9:41 AM
    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
    • By 2ilent8cho 12th Jul 18, 9:46 AM
    • 54 Posts
    • 18 Thanks
    2ilent8cho
    • #9
    • 12th Jul 18, 9:46 AM
    • #9
    • 12th Jul 18, 9:46 AM
    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).
    Originally posted by madvicker

    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
    • By jimbo26 12th Jul 18, 9:46 AM
    • 528 Posts
    • 319 Thanks
    jimbo26
    Consolidate the Cap1 cards, keep the Cap 1 with the lowest APR. Do the same with Tesco. Close Amazon and Aqua
    • Gary_Dexter
    • By Gary_Dexter 12th Jul 18, 10:22 AM
    • 2,596 Posts
    • 1,457 Thanks
    Gary_Dexter
    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)
    • 2ilent8cho
    • By 2ilent8cho 12th Jul 18, 10:29 AM
    • 54 Posts
    • 18 Thanks
    2ilent8cho
    Aqua card 1 year, its just the basic one, no cashback but is my second largest limit at the moment, and the Amazon one a few months, got it for the free sign up money.
    • Gary_Dexter
    • By Gary_Dexter 12th Jul 18, 11:47 AM
    • 2,596 Posts
    • 1,457 Thanks
    Gary_Dexter
    Keep them both - use them every now and then to stop them going dormant
    • cajef
    • By cajef 12th Jul 18, 1:20 PM
    • 4,869 Posts
    • 3,924 Thanks
    cajef
    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.
    Originally posted by BillyBills
    What a load of rubbish, how you can equate success with never owning a credit is card is ridiculous, I have three credit cards and guess what I have never paid a penny interest because they are used sensibly and paid off in full every month, they never stopped me being successful enough to retire comfortably in my fifties.
    I used to have a handle on life, but it broke.
    • T-G-C
    • By T-G-C 12th Jul 18, 2:22 PM
    • 477 Posts
    • 226 Thanks
    T-G-C
    Aqua card 1 year, its just the basic one, no cashback but is my second largest limit at the moment, and the Amazon one a few months, got it for the free sign up money.
    Originally posted by 2ilent8cho
    You wouldn't believe the amount of times I've heard that Never commit to a credit card purely out of the welcome gift card. When that awesome 10 or 20 is spent, what next?

    You should consider affordability, the financial uses it can provide to you and whether the card's charges and interest rate is worth obtaining.
    Advice provided from this account does not consist of any professional knowledge. For professional debt advice, please contact either National Debtline or StepChange. Advice may consist of personal experience, opinion and/or informational sources.
    • 2ilent8cho
    • By 2ilent8cho 12th Jul 18, 3:17 PM
    • 54 Posts
    • 18 Thanks
    2ilent8cho
    You wouldn't believe the amount of times I've heard that Never commit to a credit card purely out of the welcome gift card. When that awesome 10 or 20 is spent, what next?
    Originally posted by T-G-C
    I just spend food or fuel on it and pay it off, just more good history to add to the file. I use them all at least one or twice every 2 months.
    • pcoventry
    • By pcoventry 21st Jul 18, 7:48 PM
    • 21 Posts
    • 4 Thanks
    pcoventry
    I use my card for fuel too - although being Electric I spend like 10 a month and do all my mileage so I guess I could just use cash!
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