Is multiple credit cards unhelpful

LULULU1

We have just had a mortgage in principle approved. One of the long debated discussions during the mortgage interview was the fact that I have 7 credit cards with total limits of 68k even though i only owe 8k on them.

Would I have been better closing a number of these credit card accounts before applying for the mortgsge

or does the fact that I have so many hold me in good stead as I've never missed a payment.

Many thanks for any advice.

Lu

HappyMJ

If any of the cards are out of their introductory periods then I'd consider closing them. You should have a card on a current balance transfer offer and one for 0% interest on purchases and maybe one more but 7 may be pushing it just a bit too much. I have 6 myself I don't think it's a major problem. It depends on your income it may be high enough to support the payments on them all and the mortgage payment if you were to max them all out.

kingstreet

AFAIK only YBS Group has an issue with unused available credit and has previously asked people to close credit lines.

I've never seen it on our side.

Thrugelmir

LULULU1 wrote: »

We have just had a mortgage in principle approved. One of the long debated discussions during the mortgage interview was the fact that I have 7 credit cards with total limits of 68k even though i only owe 8k on them.

Would I have been better closing a number of these credit card accounts before applying for the mortgsgeor does the fact that I have so many hold me in good stead as I've never missed a payment.

Many thanks for any advice.

Lu

The concern to any underwriter is why you would require access to £68k of credit facitity. No one is suggesting that you would use it however you could. Which would obviously pose a risk.

Common sense suggests you close the accounts you have no need of. As even if not now you may find that it does impact you at some point in the future. As general guidelines are that 4 lines of credit in total should be adequate for most people.

Paully232000

WhenI applied for a mortgage last year had 6 CCs open. Mortgage broker and company never asked about this, just how much I had in debt over any credit cards.

Guess it depends on the lender but mine didnt seem to be that concerned.

Thrugelmir

Paully232000 wrote: »

WhenI applied for a mortgage last year had 6 CCs open. Mortgage broker and company never asked about this, just how much I had in debt over any credit cards.

The wider world is an ever changing place when it comes to "credit". Increasing amounts of data are being supplied by the unsecured lenders i.e. credit cards than previously.

Paully232000

True, but all my cc accounts are on equifax. I know from my equifax account that mortgage co used at least them to check my file and still obviously didn't concern them.

Thrugelmir

Paully232000 wrote: »

True, but all my cc accounts are on equifax. I know from my equifax account that mortgage co used at least them to check my file and still obviously didn't concern them.

Last year was 2013 I assume?

Paully232000

Thrugelmir wrote: »

Last year was 2013 I assume?

Yes, as far as I can remember it was, why?

Thrugelmir

Paully232000 wrote: »

Yes, as far as I can remember it was, why?

As I said previously times do change and will continue to do so.

Kirstyb1987

2013 = pre MMR! Massive changes have happened!