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How many credit cards to hold
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MisterBaxter
Posts: 666 Forumite
in Credit cards
I currently have a Vanquis card and think that I should be able to get a more mainstream card based on soft search results (I know they aren't 100% accurate).
In terms of improving lenders views on my credit worthiness would it be better to have 3 or 4 cards with a combined limit of say £7500 or just 2 cards with the same sort of limits. Utilisation of total would most likely not exceed 10% of the available credit and would be paid in full each month.
I have a mortgage, earn £45k and have no other debt, my Vanquis card gets limited but regular use and is paid in full each month. I've had issues in the past, these are now behind me and my credit report is looking decidedly sparse. Current account is in good order and never used my overdraft.
My main aim is to be attractive to lenders when looking at remortgaging in future.
In terms of improving lenders views on my credit worthiness would it be better to have 3 or 4 cards with a combined limit of say £7500 or just 2 cards with the same sort of limits. Utilisation of total would most likely not exceed 10% of the available credit and would be paid in full each month.
I have a mortgage, earn £45k and have no other debt, my Vanquis card gets limited but regular use and is paid in full each month. I've had issues in the past, these are now behind me and my credit report is looking decidedly sparse. Current account is in good order and never used my overdraft.
My main aim is to be attractive to lenders when looking at remortgaging in future.
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Comments
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if you pay your CC in full then the number /limits etc are unlikely to make any difference to getting a mortgage
however, if you are well disciplined, credit cards with cashback or appropriate points/rewards can be useful0 -
MisterBaxter wrote: »I currently have a Vanquis card and think that I should be able to get a more mainstream card based on soft search results (I know they aren't 100% accurate).
In terms of improving lenders views on my credit worthiness would it be better to have 3 or 4 cards with a combined limit of say £7500 or just 2 cards with the same sort of limits. Utilisation of total would most likely not exceed 10% of the available credit and would be paid in full each month.
I have a mortgage, earn £45k and have no other debt, my Vanquis card gets limited but regular use and is paid in full each month. I've had issues in the past, these are now behind me and my credit report is looking decidedly sparse. Current account is in good order and never used my overdraft.
My main aim is to be attractive to lenders when looking at remortgaging in future.
Why is your credit file 'sparse'?
If you have a mortgage, you have a house. If you have a house you'll have an electicity account and probably a gas account.
Chances are you'll also have a telephone (landline) account and even possibly a mobile account (you don't need a house for this)
And it seems you probably have an account with an ISP too.
There's probably lots more credit accounts you have - check they are on your files.
If the troubles you've had in the past were over 6 years ago, and your mortgage is paid regulary in full and on time, and you've been in your job for some time regularly earning £45k a year (after taking into consideration any average pay rises), and there is no impending end to your current employment, I can't see any difficulty in you getting a new mortgage.0 -
All household bills are in my wife's name. She was renting when we met, I moved in with her and on the couple of moves we made the bills just transferred with her. I have a works mobile so my own phone is PAYG because I don't us a phone much for personal use.
My credit file with all 3 CRA literally just has my mortgage, Vanquis card and current account all of which are green markers across the board. There are no defaults, lates, court notices or even NOC. That's what I mean by sparse. I am on the electoral roll and have been for years.
I subscribe to Noddle and pick up my statutory reports from the others approx twice a year so I know how little there is. I only took the Vanquis card to start rebuilding some history. I have been in my job and at my present address for several years.0 -
It could be worth getting another credit account for the increased history since you only have a couple of accounts.
Have you tried a credit card from your bank?
Vanquis is ok to build a history with but if you can get better ditch it, I'm glad I did.0 -
Just get the energy account put in your joint names
Likewise the water
The supplier will equally come after you if it's not paid anyway, whether you're named on the account or not.
Edit: They seem to be regularly in contact with you anyway, and you felt it appropriate to give feedback on the energy company you claim not to have an account with
http://forums.moneysavingexpert.com/showpost.php?p=64570860&postcount=780 -
Just get the energy account put in your joint names
Likewise the water
The supplier will equally come after you if it's not paid anyway, whether you're named on the account or not.
Edit: They seem to be regularly in contact with you anyway, and you felt it appropriate to give feedback on the energy company you claim not to have an account with
http://forums.moneysavingexpert.com/showpost.php?p=64570860&postcount=78
Obviously we have an energy supplier, just not in my name; but I do know how they perform, believe me if they gave us trouble my wife would bend my ear about it. I do all the readings each month and check usage because my wife claims she can't see up high enough to read the electric meter. Will utilities put accounts in joint names?
I've also posted about having a cash back card elsewhere on the forum; also in her name! Of course we are shown as being financially linked so I suppose there is an impact there. I was offered a credit card by nationwide but didn't take up the offer.0 -
I would say from experience keep your Vanquis card open until any new cards are at least 1 year old. I say this because if you phone and cancel although it will show "settled/satisfied", it will bring down your average age of accounts which lenders will look at.
I can appreciate you might want to ditch Vanquis and go for more higher esteemed credit, however I would keep it open until your new cards are as I say at least 1 year old, ideally even longer.
The utilisation will vary from one lender to the next but I'd say try keep it 40% or less and not near the max on any card.
As for me, well I have 6 cards. And although the offers are all "market leading" I have kept my Vanquis as it has a solid record and my oldest account. I put £30/40 on it each month and clear it full to keep it active as it's got a £1750 limit and I know they'd reduce it otherwise.
Hope that helps a bit.
:beer:0
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