How many credit cards should I have?

3shirts

Hi,
Until very recently I was servicing debt on two Barclaycards (one used to be Egg) of just under £10,000. My partner recently got a large inheritance and has cleared that debt for me. I am very lucky in that regard and it's a huge load off.

That's by the by though. My question is, now that I have them cleared I have three credit cards. Should I keep them all or cancel one or two of them?
The Barclaycards have 5k and 9k limits and I also have a Capital One card with £1200 limit. All of these are currently zero balance and set to pay the full balance each month.
My credit limit isn't very good due to a few missed payments at the height of my debt. Should I keep these three cards, use them and pay them off in full to help rebuild credit or will it work just as well doing that with two or even one?

Thanks

kwmlondon

I have:
a card for spending. Gives me 1% cashback and an extra 12 months guaranteee on electrical goods
a card for use abroad. 0% charge for transactions outside the UK.
a 0% card that I've transferred a large amount onto for 24 months and have treated like a cheap loan.

I've learned to be pretty good managing money. I have an excellent credit score (got offered £10k limit on card when I applied) so it works for me.

HappyMJ

3shirts wrote: »

Hi,
Until very recently I was servicing debt on two Barclaycards (one used to be Egg) of just under £10,000. My partner recently got a large inheritance and has cleared that debt for me. I am very lucky in that regard and it's a huge load off.

That's by the by though. My question is, now that I have them cleared I have three credit cards. Should I keep them all or cancel one or two of them?
The Barclaycards have 5k and 9k limits and I also have a Capital One card with £1200 limit. All of these are currently zero balance and set to pay the full balance each month.
My credit limit isn't very good due to a few missed payments at the height of my debt. Should I keep these three cards, use them and pay them off in full to help rebuild credit or will it work just as well doing that with two or even one?

Thanks

Totally up to you. I have 12 cards...and still get approved for new ones every 6 months. I've closed a few old ones and a few were closed by the credit card companies. Barclaycard tends to offer some nice long term low interest balance transfer offers every now and again so are worth keeping.

3shirts

12?! Ok so having a lot doesn't affect your credit limit then, just the way you manage them?

grumbler

It does affect, but depends mainly on the total credit available, not on the number of cards.

InsideInsurance

It effects both, if you had £30k of available credit most lenders would rather see that you had 2 cards with £15k limit each than 10 cards all with a £3k limit.

Personally I keep 2 cards for spending (Amex and non-Amex) as they give rewards/ cashback, I have one card as it allows the misses into the RA for free and occasionally I have an additional card for its sign up bonus but that is then closed as soon as the bonus has been received (eg British Airways and SPG). I used to routinely have one more for balance transfers but as I've no balances anymore that ones now gone

3shirts

I see. I think I will close the lower limit Barclaycard and in a couple of years when my score has improved start looking at cards with points/rewards.

BugsyBrowne

Anyone with 12 credit cards is surely seen as more of a hobby rather then a financial gain..

fozmcfc

I've 6. 1 Visa card, 5 Mastercards.

I tend to use 3

Virgin card (now MBNA) for a 0% money transfers and repeat 0% purchases offers, as Virgin have always been very generous in this respect.

I use a 0% purchase card when I first get it, to make large purchases on, then pay it off just before the 0% runs out, I then don't use the card again, unless I get repeat offers. So normally they are cancelled eventually and I just get another card, when the 0% runs out anyway.

Finally I use my M&S card, for every month spending as I get vouchers back and always pay the balance off in full each month.

The other 3 have £0 on them and one of them will be closed soon due to non use for 12 months plus, as I haven't used it after the 0% on purchases ran out.

The other 2, one is with my bank, which I use very occasionally to keep going, the other one hasn't been used for ages, but they haven't said they are going to cancel it yet.

Basically I used to pay credit cards, huge amounts of interest, now I use them to my advantage and pay no interest.

mr_m_2

fozmcfc wrote: »

Basically I used to pay credit cards, huge amounts of interest, now I use them to my advantage and pay no interest.

This is also my moto of life now. Have given so much to them now its time for me to get those penny back... I have learnt my lesson now..

3shirts

Yes, since I have been lucky to get this money to pay off my debts after my entire adult life spend trying to simply service them I have no plans to even allow even a single month to go by with balance on a credit card.
Thanks for all the advice. As I say I shall close the lower limit Barclaycard and just continue to use the other two with full payment every month. Once my score recovers I might look to open one like Tesco that offers good rewards for spending (but still always pay it all off)