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TwentyTwelve
Posts: 12
Registered: ‎06-27-2012
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Barclay question

I recently received a pre-approved offer for a Barclay rewards mastercard. I accepted the offer and was approved for 1300$ limit. I have been considering refinancing my vehicle, and would like to close a Cap1 card I have (they won't remove the annual fee). The card is only a 500$ card. I've been trying to rebuild my credit since 2010, so being approved for a Barclay card was an accomplishment. I'm just worried because I've heard they're very sensitive to inquiries and changes in credit report. I only have three inquiries on my report. 1 for the Cap1 card and 2 from searching for car financing.

 

Do you think anything will happen to my Barclay account if I do those two things? Or perhaps I should keep the Cap1 card open and just refinance my vehicle. I'm still getting a feel for how credit works, so any advice is appreciated.

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Revelate
Posts: 9,735
Registered: ‎12-30-2011
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Re: Barclay question

[ Edited ]

TwentyTwelve wrote:

I recently received a pre-approved offer for a Barclay rewards mastercard. I accepted the offer and was approved for 1300$ limit. I have been considering refinancing my vehicle, and would like to close a Cap1 card I have (they won't remove the annual fee). The card is only a 500$ card. I've been trying to rebuild my credit since 2010, so being approved for a Barclay card was an accomplishment. I'm just worried because I've heard they're very sensitive to inquiries and changes in credit report. I only have three inquiries on my report. 1 for the Cap1 card and 2 from searching for car financing.

 

Do you think anything will happen to my Barclay account if I do those two things? Or perhaps I should keep the Cap1 card open and just refinance my vehicle. I'm still getting a feel for how credit works, so any advice is appreciated.


The the whole Barclay sensitivity to inquiries thing with a grain of salt; the forum population here isn't anyway typical compared to the rest of humanity... and there's as many people who've reported no issues (or more that didn't post, go figure) than those that have.

 

Unless your AF Is coming due, I wouldn't close it.  Also if Cap One and Barclay's are your only current cards, I wouldn't close C1 until you have another 2ish cards approved in the future.  Also FICO wise, and this isn't proven at all, 3 years might be a magic boundary for tradelines anyway to graduate to long-term, may be worth just paying the AF as it's not the end of the world financially.  People sweat AF's and inquiries both too much in my opinion, but many will disagree with that :smileywink:.

 

Anyway, if it makes financial sense to do so, absolutely refinance.  No card is worth wasting hundreds or even thousands of dollars in increased interest payments over the course of an auto or mortgage loan.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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GST2008
Posts: 443
Registered: ‎03-22-2008
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Re: Barclay question

Two total inquiries isn't really that many.  Do you know what report/s they are on?  It could be that they are on different reports, which would be even better.  Barclay's traditionally pulls TU, so I would assume that is the CR that they soft more frequently.  I did notice that they softed my EX once in the past 2 years, but that isn't very often.  Also, although others report that they are new account sensitive, it is likely that they are more sensitive to new credit card accounts rather than instalment loan accounts.  Refinancing your auto loan would be the latter.  During the time I've had my two accounts with Barclay's, I added multiple new instalment accounts (student loans) and it never affected me in a negative fashion.  If the autoloan is going to save you money and free up your monthly cashflow, you should do it.  That is the purpose of good credit, better interest rates.


Current:
TU (5/14/14): 796 (Inquiries; 8/23/13)
EQ (3/23/14): 791 (Inquiries: 8/23/13)
EX (9/24/13): 780 (Inquiries: 7/2/12; 11/20/12; 7/30/13; 8/23/13)

Goals: No new inquiries for 2014, 800 for all CRs by 12/31/14

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