too many cards?

monkeyalan_2

Hi,

I have 4 cards at the moment but only use 2. should i cancel the ones i don't use or keep them?. The ones i don't use have very high purchase interest rates and were taken on when i had no credit history. I now have a good CH :j .

I plan to apply for a new card (probably egg) in around 5 mths as i want to transfer my exisisting balance from the only card i owe money on.

thanks

Bokken_2

Have a look at what you are using your cards for at this time and what you are likely to need them for in the coming months.
If the cards you have at this moment aren't going to be very useful close them and apply for another that is going to be a benefit to your way of life.

monkeyalan_2

i doubt i will ever use the 2 i'm thinking about closing but wondered if this will have a positiveor negative effect on my credit rating or application for new cards.

grumbler

Should I cancel old credit cards?

Paul_Herring

monkeyalan wrote:

but wondered if this will have a positiveor negative effect on my credit rating or application for new cards.

Depends on what the prospective new lenders are looking for. If they're looking for customers will lower available credit to borrow from, it will increase your score with them.

In addition, if you're looking to re-apply with the two cancelled cards in 3-6 months, you will generally be eligable for 'new customer' offers.

Bokken_2

There are lots of factors the companies consider before giving you a card,employment status,income,married etc etc.
In my experience if you use a card and don't miss any payments and then pay it off in full so it shows as "settled" on your credit file there isn't a problem applying or having another card.
Have a read through the other credit card relate articles Martin has written and the "how many credit cards have you got" discussion.This will give you a better idea and how to apply this information to your circumstances.

sicker

Closing unused cards will free up the amount of credit available to you so I would assume this would be a plus on your credit rating when applying for new cards.

John

monkeyalan_2

thanks for the info everyone.