Credit Cards - How many is too many?

lisyloo

The only way you can have too many is if your available credit grows to a level that makes lenders nervous

Or you can't manage them e.g. mix up the payments, can't keep up with the Ts & Cs, lose one and don't notice etc.

Mr_Goodkat

lisyloo wrote: »

Or you can't manage them e.g. mix up the payments, can't keep up with the Ts & Cs, lose one and don't notice etc.

Direct debits set up to pay the balances in full or if a balance transfer / purchase offer card DD to pay a fixed amount (above minimum payment) so no mix up can happen.


I only keep a small number of often used credit and debit cards in my wallet with the rest stored in a safe.

matty_544

Mr_Goodkat wrote: »

The only way you can have too many is if your available credit grows to a level that makes lenders nervous

Can someone please explain in simple terms wat this means?

lisyloo

You still need to keep on top of any T&C changes e.g. annual fee is introduced.
I'm not saying it's a big issue - but it's probably not for the lesss well organised.

To use the right one in the right place and keep up with the benefits you need to be fairly well organised anyway.

datlex

I only have 2 credit cards plus 3 debit cards- those came with my bank accounts I only actually use one for purchases at all. I have one credit card which pays things like council tax/ rent/bus fare on a weekly/monthly basis. The other I use for other expenses including food. Both are rewards cards and paid off in full from one of my bank accounts. I think like other people have said look at what the cards offer and what you will gain from using them. If you have any cards which don't give you extra benefit either through budgeting or through the rewards linked to them then I would get rid

iAMaLONDONER

matty_544 wrote: »

Can someone please explain in simple terms wat this means?

If your available credit- add up all your CC limits and OD limits- is over 50% of your income then it tends to look bad. As a general rule of thumb

lisyloo

Can someone please explain in simple terms wat this means?

Well if you have so much credit that a lender won't give you a loan or mortgage then that's a big problem.
They might not be that forhcoming about telling you exactly what the problem is if one of their back end "computers said no".
You might have wasted time and perhaps even spent some money or you could lose a dream house or car because of it.

How can you know?
Well you can't but it would sensible not to take out cards just for the sake of it if you have your heart set on a dream home.
Many on here who have loads of cards, ironically don't need the credit and are tarting for the rewards.
That's fine if you have nothing to lose but if you are waiting for that dream home then you might want to think twice.

guesswho2000

lisyloo wrote: »

Well if you have so much credit that a lender won't give you a loan or mortgage then that's a big problem.
They might not be that forhcoming about telling you exactly what the problem is if one of their back end "computers said no".
You might have wasted time and perhaps even spent some money or you could lose a dream house or car because of it.

How can you know?
Well you can't but it would sensible not to take out cards just for the sake of it if you have your heart set on a dream home.
Many on here who have loads of cards, ironically don't need the credit and are tarting for the rewards.
That's fine if you have nothing to lose but if you are waiting for that dream home then you might want to think twice.

Couldn't have put it better myself. I've basically spent the past two years churning credit cards, for both me and OH, for various benefits. I've kept hold of the long term ones, and ones with an ongoing benefit. While on a 3 year fix, it didn't matter - I had no intention of requiring a mortgage.

However, in about 12-18 months, I'm going to be looking to remortgage, so I'll be spending the next year letting searches drop off and ensuring accounts are showing settled.

While my lender didn't seem to mind about my available credit last time I applied, it now exceeds my salary, which may be a different story. Either way, as lisyloo says, it's not worth the potential loss of fees etc, so it won't hurt to close a few cards.

lisyloo

which may be a different story

Mortgage lending rules are also being tightened.
Spending commitments have been looked at for deacdes but now it's more detailed e.g. haircuts, takeaways etc.
This might not directly relate to available credit, but it's certainly true to say that at the moment lenders are quite risk averse, so you want everything to be in order.

I'm not saying don't take that cashback card, but if you have other borrowing requirements then I am saying think about your priorities.

planteria

Aquamania wrote: »

I really don't think you should have more than say 42 ... unless you have a really good reason for needing more

i've never reached 42, but had 24 at one stage;) currently have 8, but dropping down to 5 in the next few weeks. 3 with BT deals on, 1 for spending, 1 to use for a large spend later in the year, or potentially a BT deal if they come up with something tasty.

it really depends on your circumstances. certainly a few years ago there was little need to worry about 'too many'. but perhaps things are a little bit tighter now?
i would say that if, for convenience or for rewards, you want 5, 6 or 7, it should be fine & not have a detrimental effect on your report.