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Credit card - close or balance transfer?

(8 Posts)
Aquiver Mon 14-Mar-16 12:33:38

Hi,

Apologies if this is a silly question(!) but I will shortly be coming to the end of my 0% credit card deal (in May).

I will be paying off the whole balance sometime this month (hopefully!) and will not be adding anything on.

I would like to keep a cc for emergencies. Is the correct approach now to

a) call my existing provider and ask them to close my account, and then research the best 0% deal elsewhere? Or
b) do some sort of balance transfer to another deal, even if the balance is nil?!

Again, I'm sorry if my question seems mega stupid. I'm not very au fait with handling credit cards / snowballing them etc and I'm not sure which would be best to protect my credit rating.

dementedpixie Mon 14-Mar-16 14:25:16

Do you need a new deal or is the card for emergencies only? Just hold onto the existing one and you don't need to phone anyone as the card just stays open and active for you until you need it. If you need a new deal just look for one.

DesertOrDessert Mon 14-Mar-16 14:38:58

If just for emergencies, I'd pay it off, and keep the card.
If you end up needing it, and have spent on it, that would be when I would look for a 0% deal, if you can't pay it off quickly.
Congrats on paying off the balance (nearly!)

Aquiver Mon 14-Mar-16 15:14:31

Great - thanks both, that's super helpful! Will keep the card for emergencies smile

Scotslasslivinginfrance Mon 14-Mar-16 15:20:23

Depends on what your current credit card was used for. You say it's 0% but was that for a previous balance transfer. If so and you have paid off the balance in the time, then close the account. Don't ever spend on a 0% balance Transfer card the rates are extortionate. If it's for emergencies and occasional spending look out for for 0% spending cards. Check out Martin what's his names website for advice it's generally quite good.

lovelyupnorth Mon 14-Mar-16 16:20:47

if its for emergencies, i'd just keep the one you've got and use the fact of the interest rate to stop you using it.

if you need one for purchases then look at one that has 0% interest on purchases.

Have you other debt that you're looking at alance transfering

Aquiver Mon 14-Mar-16 16:59:13

Hi lovely - no, no other debt to be transferred (will certainly try to keep it that way from now on!).

As scotslass has already guessed, this was a card originally used for a 0% balance transfer offer last year. You're absolutely right, the rates mentioned for purchases (starting in May 2016) are painful!

I will definitely take a look at the MSE site to check out the best deals at present.

SerenityReynolds Mon 14-Mar-16 18:32:59

I always keep a 0% purchases one. When the promotional period runs out, I close it and take out a new one. I mainly keep it for unexpected or big purchases that I might want to pay off over time.

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