Too many credit cards?

gallaghb

Hi
I see a lot of conflicting ideas about whether this is bad for credit rating or not. Just wondering what people's thoughts are now?

I've got 4 credit cards with a lot of credit and if I'm looking to apply for a mortgage in the next 12 months do you think this looks bad to lenders?

Amex - £7k limit
Do as much spending as I can on this as get 1% Cashback.
Balance paid in full by direct debit.

Barclaycard - £12k limit
Spend on this when Amex not accepted. Get 0.5% Cashback.
Balance paid in full by direct debit.

First Direct gold card(my bank) - £20k limit
Zero balance at the moment, has still got 0% purchases period on it.

Halifax Clarity - £4k limit
Zero balance. Just use to spend abroad.

[Deleted User]

How does it compare to your income? If you're earning around the 100k mark, you're probably OK. Otherwise maybe think about reducing/removing the FD one.

But I don' think it's a huge deal either way.

King_Nothing

Which one have you had the longest?

musafir05

It does hurt credit score. Keep the oldest one and cancel the remaining.

[Deleted User]

musafir05 wrote: »

It does hurt credit score.

That's a bit like saying it hurts unicorns.

HappyMJ

gallaghb wrote: »

Hi
I see a lot of conflicting ideas about whether this is bad for credit rating or not. Just wondering what people's thoughts are now?

I've got 4 credit cards with a lot of credit and if I'm looking to apply for a mortgage in the next 12 months do you think this looks bad to lenders?

Amex - £7k limit
Do as much spending as I can on this as get 1% Cashback.
Balance paid in full by direct debit.

Barclaycard - £12k limit
Spend on this when Amex not accepted. Get 0.5% Cashback.
Balance paid in full by direct debit.

First Direct gold card(my bank) - £20k limit
Zero balance at the moment, has still got 0% purchases period on it.

Halifax Clarity - £4k limit
Zero balance. Just use to spend abroad.

Each of your cards has special benefits so I'd just keep them all.

Maybe reduce some of the larger credit limits if you know you are never going to need it. £20k is quite a high limit.

I would reduce them all down to £5k each...but that's me I don't know what your spending patterns are like or if you have some planned improvements on the property which will require the higher credit limit.

JimmyTheWig

If it was me, I'd keep them all. And keep all the limits the same.
The only one you don't need is the First Direct one.

If I was giving you a mortgage (I'm nothing to do with mortgages, so take this with a pinch of salt) I'd see these limits and the fact that the are paid off in full each month and think
(a) here's someone who is very sensible with money - they have access to all this credit and don't use it
and
(b) here's someone who is trustworthy - they have been given high limits by other companies
In other words, I think they stand you in good stead (sp?).

King_Nothing

Others will think; here's someone who at a moments notice has access to £43k of unsecured debt just waiting there.

musafir05

Deleted_User wrote: »

That's a bit like saying it hurts unicorns.

credit score means nothing, however it does push it up when you close down unnecessary cards.;)

starM

OP - How long have you held your First Direct credit card? Have you checked to see if its showing on your credit report?

I also hold FD card with high credit limit which was taken long time ago at least 15+ years ago and its not showing on my credit report.

gallaghb

Thanks for all the replies.

I've had the Barclaycard the longest - 8 years maybe.

Halifax a couple of years - won't cancel this as it's useful abroad.

Amex 6 months - probably will cancel this after first year when I get the Cashback and just use the Barclaycard because that's now one of those dual Amex / visa accounts.

First direct is new, they were offering free £25 if I took it out and used it for just 1 transaction. But given its 0% on purchases it could come in handy to hold onto.

I was very surprised by the £20k limit... I don't earn £100k no!! But it's a joint account we have with them and it's over £80k joint salary that goes in there plus bonuses sometimes. I've had a couple of loans with them which I've paid back on time and eventually made early settlement. So I guess they think I'm trustworthy.

Still can't decide whether they would look at it like Jimmy says above or King....

If applying for mortgage would they not just ask you to close them if they didn't like them? Or is it simply reject application!