Lenders don’t like seeing that you’ve got access to too much available credit, so if you’ve got several open but zero-balance cards, they may be less likely to grant you access to alternative forms of finance in the future. However, there are some scenarios in which you may want to consider closing unused cards. You can also be safe in the knowledge that you’ve got a backup available should you need credit in future, such as in the case of an emergency, without needing to reapply. Unused cards show lenders that you’re not struggling financially, that you can manage multiple accounts, and also that you’re not using all the credit that’s available to you. Having a zero balance on a credit card isn’t necessarily a bad thing indeed, it may even work in your favour. These tend not to have the longest 0% period for either transfers or spending, but on the plus side you have just the one card to manage. If you have a big purchase in mind, and want to do a balance transfer at the same time, you could go for a combined 0% card for balance transfers and purchases.However, even if this has a generous interest-free period of its own, try not to spend too much as you could end up paying off one debt only to find you have run up another! If you like to spend on your credit card, keep a separate card for purchases.Make purchases or withdraw cash using the credit card, as this will mean that you're paying interest and not using the card in the cheapest and most efficient way.Some providers will let you set up a Direct Debit for a set amount or fixed percentage every month or you can set up a standing order, so take advantage of this and get your debt repaid! Make a monthly repayment plan and try to pay more than the minimum payment.Try to pay more than the minimum balance – It’s unlikely you’ll clear your debt before the interest-free period ends if you only pay the bare minimum.Make sure you pay at least the minimum payment each month on your credit card, otherwise the provider may decide to withdraw the introductory 0% offer and put you on a more expensive interest rate.Depending on the arrangement we may receive a modest commission either when you press an 'Apply Online' button, when you call an advertised number or when you complete an application following a link from our website. We also use ‘Apply Online’ links where we have an arrangement with a preferred broker to move you directly to their site. ‘Apply Online’ links are where we have an arrangement with a provider so you can move directly from our site to theirs to view more information and apply for a product. Please check all rates and terms before borrowing. Fees and rates subject to change without notice. Depending on your personal circumstances the APR you are offered may be higher, or you may not be offered credit. The APR quoted is representative of the interest rate offered to most successful applicants. DisclaimerĪll credit cards are subject to the applicant’s status. None of these arrangements affects our independence. We will receive a payment from credit providers where customers link to them from .uk. uk Limited is an independent credit broker not a lender.
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