Multiple cards affect credit rating??

Clackerooney

Hi,

I recently took up an airmiles duo card to get my 500 free airmiles on first £10 purchase.

I've seen the egg offer on quidco that'll get me £30 cashback on acceptance that I think I'll go for.
I also like the look of 4% cashback from capital one.

I'll cancel all the above cards after I get my freebie cash/airmiles or when the 4% cashback period ends.

My question is will this affect my credit rating?
Will it look bad if I've had, say 5, credit cards in the past 6 months?

I've never paid a penny interest on a card, I always clear the balance in full before an interest free period ends & I don't do balance transfers.
I'll just apply for the cards to get the freebies not to actually use them.

I'm asking as I'll be applying for mortgages in a few months and don't want a low offer because I've had so many credit cards.

Cheers,
David

Bokkens

You should be okay if you pay your balances off in full and settle the accounts,if you leave them all open it appears to the card companies that you are a higher risk as you have so much credit available to spend at short notice.
If you are selecting these cards for the £30 offers I would suggest you step back and think about what type of credit you will need after your new mortgage goes through,there is always added expense after moving so you may want to select a suitable card now or perhaps just before the morgage application.
iI wouldn't personally keep applying for these small offers when you can(as you pay the debts off in full) stooze the money from some of these cards instead and certainly make more money than the initial offers.
Check out Martins credit card articles for more details.
Good luck.

wayoflife

Clackerooney wrote: »

Hi,

I recently took up an airmiles duo card to get my 500 free airmiles on first £10 purchase.

I've seen the egg offer on quidco that'll get me £30 cashback on acceptance that I think I'll go for.
I also like the look of 4% cashback from capital one.

I'll cancel all the above cards after I get my freebie cash/airmiles or when the 4% cashback period ends.

My question is will this affect my credit rating?
Will it look bad if I've had, say 5, credit cards in the past 6 months?

I've never paid a penny interest on a card, I always clear the balance in full before an interest free period ends & I don't do balance transfers.
I'll just apply for the cards to get the freebies not to actually use them.

I'm asking as I'll be applying for mortgages in a few months and don't want a low offer because I've had so many credit cards.

Cheers,
David

hmmmmmmmmm ok be careful with this one....

I have had advice from a friend of mine, who is by far the most knowledgable person, he knows everything!!! he has alot of credit cards

limit your credit searches to one per month, saying that if you havnt done any in a while you can do a couple. I have just applied for 2 credit cards after about 6 months of waiting.

I would just look at what the benefits do for you. Ok fair eneough theres alot of 'one time' offers i.e. the nectar points one.

However I would tend do go for the longer lasting ones, like the cashback ones.

As far as not using them I would definately use them, even £5 a month and repay in full. This is to keep them active.

I would review all of your cards and cancel any that dont give you any longer lasting benefits. and dont do anymore searches until you do the mortgage search. as soon as you have the mortgage then do whatever you like (providing you dont do any big no no's in the credit card world of course)

Hope Ive been of help

J

Clackerooney

Hi,

Thanks, both replies have been helpful.
I think I'm going to scrap my idea of signing up for loads of cards just to get the introductory offers.
It's not worth risking a bad credit rating with all the searches and it's probably better financially to get just one good cashback card or one 12 month interest free card and stooze the cash.

Cheers! :beer:

David