Credit Card Balances

danny1978uk

Hi, Just a quick query.

Is it better to have a large balance on 1 card say for example 10k rather than spreading it over 3 cards??

Thanks

Danny1978uk

Moggles_2

Better in what respect?

If none of my cards offered preferential rates and I couldn't afford to settle up, I'd move my borrowings to the card with the lowest APR, credit limit permitting.

talana

Everything else being equal or equivalent (apr's, minimum payments, credit limits etc) I can't see that it matters either way.

More important is to have the lowest apr's possible.

danny1978uk

Sorry, i do apologise, maybe i should have put a little more detail in the question.

If you have 3 balances of say £2000 on 3 different cards, all at the same lob % does it look better on your credit report to have 3 balances or 1 LARGE balance??

Thanks

Danny1978uk

Moggles_2

danny1978uk wrote: »

If you have 3 balances of say £2000 on 3 different cards, all at the same lob %, does it look better on your credit report to have 3 balances or 1 LARGE balance?

In addition to the number of accounts in use, lenders look at the extent their credit limits have been utilised. Maxed out accounts make you look stretched so, if you're going to apply for further credit cards, particularly the market leaders, it's wise to leave plenty of headroom.

That said, I doubt whether it makes much difference.