Is it too much?

Probi

Hi all,

I know noboby could give a definate answer but what are your opinions on the amount of credit i have available....

I earn about £20000 a year maybe slightly more with o/t

The credit cards i currently have are..

Tesco limit £1700
Halifax clarity limit £2000
Burton card limit £500
Natwest limit £1950

I've only recently applied for the natwest card as my tesco 0% runs out soon and i like having a 0% purchase card for some large purchases that i may not pay off straight away.

Currently none of the cards have any balance on them and i mix between paying the cards off in full or maybe leaving a balance for a couple of months.

I dont think my limits are that high but i more concerned about the amount of cards i have, I'm looking at getting a mortgage early next year so want to get my credit record in the best shape possible before then, i've never missed any payments or anything and have had cards on and off for 6 years.

Do you think i should reduce the limits? Or reduce the amount of cards i have? or do you think im ok as i am.

Any advice would be great...thanks

[Deleted User]

The limits aren't a problem at the moment, given you don't have a balance on them. 3-4 cards is fine. I'm not sure I'd keep the Burtons one, but if it's giving you some benefits, then each to their own.

Probi

The burton was top of my list to get rid.

So kindof agree with that.

Thanks for your reply!

TheMadCow_2

Hi, i'm far from an expert.

In my experience if you have too much access to cash, either in Credit Card or/and bank overdrafts this could affect how much credit agencies are willing to loan you, and affect your credit rating.

So my advice is, drop any excess banks and Credit Cards you dont use.
Spend on those credit cards you keep and pay off each month, so as to keep building a good credit rating.

check your credit rating also.

Silly mistake I made was, whenever I made an application for a card, I always put I was single, even though I had been married and divorced. I thought why the hell should I say I was married in first place. What I did not realise at the time was they knew I was married once. So by putting I was only single, I gave impression I was still married, and so still could be accountable for the ex-wife's debts. So if I put "divorced" I was then clearing myself of my ex-wife and not accountable for her.

Probi

I was thinking of just doing that but i like to keep the cards for different reasons.

I use the tesco card just for fuel to get the extra clubcard points then pay it off straight away.
The halifax one for use abroad and the natwest one is going to be used for my car insurance as its 0%.

So will prob just get rid of the burton card, i know its my lowest limit but i just dont like the idea of having 4 cards.

Also my credit rating has always seemed pretty good and i havent got any bad markers on there etc

freddy911

Its better to have more available credit than less, for example if you have 1k of credit used and 5k available, this will be looked upon as better than having £500 used out of 1k available credit. Credit companies like to see you use less than 30% of available credit. If your using all of your available credit even if its small it can give the appearance your struggling to manage it. If you have a high available credit but dont use it, it give the impression your responcible and dont use it just because you can.

ria.c_3

Hmm - not sure if I agree with Freddy, I'm afraid:

"If you have a high available credit but dont use it, it give the impression your responcible and dont use it just because you can."

A prospective mortgage lender may well look at the amount of available credit you have, and wonder whether you will make use of it as soon as you've got your mortgage, thus increasing the chances of default. As a former mortgage underwriter, this is something that I might have had concerns about. If you aren't likely to need all of your cards, cut one or two up and send them back.

Good luck,
Ria