Encore une foi: Credit Card Question

Lex_Diamonds

Hi all,

Quick question for anyone who might know the answer: I recently applied for a second credit card with a nice and low APR, however the credit limit on it was nowhere near what it is on my first card.

The question is, once I clear the original card of all that I owe, can I cancel it and ask them to bump up the credit limit on the new card so it matches the cancelled one?

Hopefully that made sense...

IamBeowulf

You have 3 options.

a) What you said in your own post, i.e. pay off the old card and then apply for a credit limit increase in your new one.

b) Transfer over as much of your existing balance as the new credit limit will allow, thereby (presumably) availing of the new card's lower Balance Transfer Rate (usually 0% for 6-9 months), thereby saving the extra interest you would have paid had that amount of money stayed where it was. Meanwhile, clear the rest off the old card yourself.

OR

c) Contact the provider of your new card. Tell them how much is owing on your old card, and how much of a difference there is between your old limit and your new one. Usually they'll match the limit and transfer THE WHOLE LOT, thereby (again, presumably) availing of 0% interest for 6 - 9 months.

Options a) and b) may also be more taxalbe. Closure of an existing credit card is liable for 30 euro tax. Activation of a new card is 30 euro also, so you'd pay 60.

C), however, means that your old card would be cleared in full there and then. All you'd have to do is request a statement of closure from your old provider, and forward it onto your new one, which voids the extra tax.

So c) saves you sh!tloads of interest AND 30 euro.

Who's da man?

Lex_Diamonds

IamBeowulf wrote: »

You have 3 options.

a) What you said in your own post, i.e. pay off the old card and then apply for a credit limit increase in your new one.

b) Transfer over as much of your existing balance as the new credit limit will allow, thereby (presumably) availing of the new card's lower Balance Transfer Rate (usually 0% for 6-9 months), thereby saving the extra interest you would have paid had that amount of money stayed where it was. Meanwhile, clear the rest off the old card yourself.

OR

c) Contact the provider of your new card. Tell them how much is owing on your old card, and how much of a difference there is between your old limit and your new one. Usually they'll match the limit and transfer THE WHOLE LOT, thereby (again, presumably) availing of 0% interest for 6 - 9 months.

Options a) and b) may also be more taxalbe. Closure of an existing credit card is liable for 30 euro tax. Activation of a new card is 30 euro also, so you'd pay 60.

C), however, means that your old card would be cleared in full there and then. All you'd have to do is request a statement of closure from your old provider, and forward it onto your new one, which voids the extra tax.

So c) saves you sh!tloads of interest AND 30 euro.

Who's da man?

Looks like you are...cheers!