Credit cards, transferring balances and other q's

[zed4]

Good morning all,

I currently have two credit cards. One with no balance, another with about £300 on it. I have recently ordered some furniture, so that will be added to one of the cards as well as some spending to do on my car. Likely to be around £2000 in total.

I have more than enough cash in my bank account to pay off the credit card and other spending which is due shortly, but I could do with the cash to use in another investment.

I'm well overdue changing my credit card, so now seems a good time to do it. I'm looking online and I see various deals on interest free on spending and balance transfers for 24 months. Santander 123 credit card even have no balance transfer fee. All good.

So, my question is, what should I do with my two existing credit cards? One is Tesco (with the current balance), the other was my first credit card from my bank HSBC (with zero balance). Should I keep them or should I cancel them? Does it have any affect on my credit score if I have multiple credit cards? Does it even matter? I would have no need for them once I get a new one. Both cards' interest free period have now finished.

Many thanks,

Dan

 

[Veni Vidi Vici]

http://www.moneysavingexpert.com/credit-cards/cancel-unused-cards

This might help Dan

 

[imightbewrong]

Have you already spent the money? Virgin are doing 37 months (!) interest free on purchases on a new card.

 

[zed4]

http://www.moneysavingexpert.com/credit-cards/cancel-unused-cards

This might help Dan

Thanks, that's very useful.

Have you already spent the money? Virgin are doing 37 months (!) interest free on purchases on a new card.

No, I have about £300 on one card at the moment. The rest of the spending is due soon. I'll look into that, 37 months is very impressive!

 

[imightbewrong]

Another interesting one I saw was MBNA who are offering a balance transfer with no fee which attracts interest at 5% pa and lasts indefinitely - for the life of the balance.

Didn't realise money was so cheap again!

 

[zed4]

I’m not sure whether to just clear my cards (£300) and cancel them, then just take out a new card with the longer interest free period on new spending, or whether to both trying to transfer the small existing balance.

 

[a l e x]

If it was me I'd just pay off the £300 and get a new one. I got the 123 card not long ago, was free for the first year as I moved to the 123 current account too. They've just announced fee increases though.

 

[zed4]

If it was me I'd just pay off the £300 and get a new one. I got the 123 card not long ago, was free for the first year as I moved to the 123 current account too. They've just announced fee increases though.

Yes, was just reading that. £24 pa for 12 months and then £36 pa. 3% cashback though up to a maximum of £3 pm, so £36 pa if I use the maximum! They don't make it easy!!

 

[zed4]

I've applied for the Post Office credit card, 27 months interest free on purchases, no annual fee. Seems good. I think I'll cancel my other two credit cards.

Thanks for your help.