Credit Cards - To close or not to close?

[john935]

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.

I'd close vanquish and aqua purely because of the crap interest rates.

You do need to keep a card to rebuild your credit rating. But be very disciplined and put fuel etc on the card, that you know you will repay in full every month.

Repay on time or early, never miss a payment.

Eventually you will be offered better rates and interest free deals which are useful for buying larger planned items and save money if used correctly. Which means pay it monthly until the end of the deal, so calculate how much each month is needed.

Also useful for emergencies.

I would always maintain my credit rating so can access low int loans and int free credit, mortgages etc when needed.

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. I hope you can find your answer here www.scottishtrustdeed.co.uk/creditor-details/

Close them all. The temptation to run another balance up would be too great. Save up a fund for emergencies instead so you don’t go into debt the second anything out of the ordinary happens. Worry about your credit score later - credit score just gives you access to more credit which you should probably stay away from for the time being.

Close them all and look to build an emergency fund (Google Dave Ramsey). Credit rating is nowhere near as important as everyone is led to believe, responsible lending is based on affordability. You could have a 999 credit rating but no disposable income, as such any request to borrow would be declined.

Keep them open but cut up the cards. It looks good to other lenders if people are willing to lend you money and, as long as the balances don't build up again, can be a good sign of your ability to manage credit.