Credit Cards - To close or not to close?!

[fiscalfool]

Re: Credit Cards - To close or not to close?!

For people new to credit or looking to rebuild then yea it's good to show usage.

Youve shown that already - hence such high limits on sub prime cards. My Aqua card is over a year old now and still only at £900.

Why must bank be TSB? The BR must be putting them off / historic debt on system maybe?

Aaah makes sense now. Ok great, I'll set them to repay automatically full amount each month.

TSB: I was referring to this post of mine : http://forums.all-about-debt.co.uk/s...l=1#post573016

TSB wasn't letting me open another account. You suggested I closed the Co-Op accounts. Co-Op prevented the account switch first time around, apparently policy for people with BR on their records "So the receiving bank is fully informed".

In the months since, TSB still doesn't appear to let me open another account. I'm wondering if this is due to my high credit card utilisation.

My reason is that I want two current accounts "One for bills" and "one for spending"

Might be best to merge this thread into my "Well ... " post for continuity.

[Never-In-Doubt]

Re: Credit Cards - To close or not to close?!

For people new to credit or looking to rebuild then yea it's good to show usage.

Youve shown that already - hence such high limits on sub prime cards. My Aqua card is over a year old now and still only at £900.

Why must bank be TSB? The BR must be putting them off / historic debt on system maybe?

[fiscalfool]

Re: Credit Cards - To close or not to close?!

Vanquis is high APR. Aqua shouldn't be - I'd keep Aqua & cap1. If Aqua is high then ask them to swap it to a better apr card.

Neither will affect your rating - in fact they won't aid you or have a negative effect. They won't do anything but show people who search you that you're not a risk. That's part one of rebuilding your credit.

No need for £10k of sub-prime credit, so cap1 & Aqua are best keeping open.

Whether you clear it or not won't affect the limit. Very presumptuous there - affordable lending rules dictate increases. So pay on time and don't miss payments etc will result in limit increments every 3-6 months.

Hey Niddy

I'll check the Aqua APR, but pretty sure it's much lower than Vanquis was. Vanquis closed now.

Agreed it is very presumptuous, just my previous experience that when cards were cleared I'd be offered an increase. Although that was post lending crisis when all lenders started using affordability rules.

I shall ensure they are both set to clear balance monthly. I was under the impression (possibly wrongly), that I needed to keep a balance on there to show that I was using it. I'd read somewhere if you use it, and pay in full every month, then there's no balance to be recorded during credit reports.

Let's see what my credit report looks like in 3 months. Still got TSB not allowing me to open or upgrade my account online. Even after closing the Co-Op current accounts. Will see how it looks.

[fiscalfool]

Re: Credit Cards - To close or not to close?!

I would close vanquis and maybe keep the other 2. My suggestion is to use Cap1 as it usually has a lower interest rate and keep Aqua in case you travel abroad as it doesn't charge. Even though they are sub prime, showing good use can help with credit rating. BUT you must pay them back in full; can you be trusted to have them? Do you need credit cards?

Update:
Vanquis closed now. Thanks for the suggestion to use Cap1, and Aqua only when needed abroad.

The reason I'd got behind with them was that I was working away and incurring lots of expenses, and then not clearing them when work paid my expenses.

Valid point about whether I can be trusted with a card. To be honest I'd rather not have one or need one. I think my end goal will be one "normal" card with enough to cover emergencies, but not high enough to get into a mess.

No, I don't really need a card. Only have them to improve credit rating.

Will be clear of BR come Nov this year.

[Never-In-Doubt]

Re: Credit Cards - To close or not to close?!

Vanquis is high APR. Aqua shouldn't be - I'd keep Aqua & cap1. If Aqua is high then ask them to swap it to a better apr card.

Neither will affect your rating - in fact they won't aid you or have a negative effect. They won't do anything but show people who search you that you're not a risk. That's part one of rebuilding your credit.

No need for £10k of sub-prime credit, so cap1 & Aqua are best keeping open.

Whether you clear it or not won't affect the limit. Very presumptuous there - affordable lending rules dictate increases. So pay on time and don't miss payments etc will result in limit increments every 3-6 months.

[cymruambyth]

Re: Credit Cards - To close or not to close?!

I would close vanquis and maybe keep the other 2. My suggestion is to use Cap1 as it usually has a lower interest rate and keep Aqua in case you travel abroad as it doesn't charge. Even though they are sub prime, showing good use can help with credit rating. BUT you must pay them back in full; can you be trusted to have them? Do you need credit cards?

[fiscalfool]

Re: Credit Cards - To close or not to close?!

Ok, so my desire if to improve my credit rating post-bankruptcy. I don't want sub-prime cards, and would rather close them.

So, I'm not sure if I should close them now ... or wait for them to up the limit, and then close, so it reflects I've had access to higher credit.

Not totally clear if I keep them, and not use them ... or close them. Whichever is best to improve credit rating.

[The Tech Clerk]

Re: Credit Cards - To close or not to close?!

Should I just close them before they offer to up my credit limits??

your choice? but are you closing them or just keeping them? thought closing so would make no difference???? bit confused here!

[fiscalfool]

Re: Credit Cards - To close or not to close?!

Should I just close them before they offer to up my credit limits??

[The Tech Clerk]

Re: Credit Cards - To close or not to close?!

last two might be a good idea as High interest cards, why waste money when cap 1 more likely cheaper interest if needed to be used

[fiscalfool]

Hi All

As part of my journey back from Bankruptcy, I have three Credit Cards:

Vanquis £4000 Limit
Aqua £4350 Limit
CapitalOne £1750 Limit

I've just come into some money and cleared all balance on those cards.

My credit rating is still pretty crap, I'll be honest, and post-bankruptcy, I'd let the balance climb on those again. Stupid FiscalFool!!

Anyway they are all now paid off.

My question is:

1) I presume they will see them cleared, and thus offer me credit increases. Should I take them?
2) I want to close the cards, so that I can improve my credit rating? Should I?

Thoughts?

I'm thinking ...
Close Vanquis and Aqua, giving me much less access to real credit, and use Cap1 just for fuel, and repay in full every month.

Thanks in advance.