How many cards is enough?

philip1427

Ok. I want preface this with the fact I am only into credit cards because of the cash back/point rewards associated with them. Maybe for some added protection when buying more expensive goods.

In order to obtain the welcome bonuses I want I am planning on closing two cards and opening two cards a year.

My credit score comes first above and beyond cash back. I am concerned this behaviour would devastate my credit score.

I would like some advice from seasoned credit card holders. Thanks in advance.

DCFC79

philip1427 wrote: »

Ok. I want preface this with the fact I am only into credit cards because of the cash back/point rewards associated with them. Maybe for some added protection when buying more expensive goods.

In order to obtain the welcome bonuses I want I am planning on closing two cards and opening two cards a year.

My credit score comes first above and beyond cash back. I am concerned this behaviour would devastate my credit score.

I would like some advice from seasoned credit card holders. Thanks in advance.

Maybe ot willaffect your score but only you can see it, lenders see the crddit history.

[Deleted User]

Never put your credit score above anything. It is nothing more than a gimmick and has no relevance to anything.

Your credit history and files are what you need to worry about.

The right number of cards is based on your circumstances, including income, balances and limits. You'll need to give some detail for any further advice.

Candyapple

philip1427 wrote: »

Ok. I want preface this with the fact I am only into credit cards because of the cash back/point rewards associated with them. Maybe for some added protection when buying more expensive goods.

In order to obtain the welcome bonuses I want I am planning on closing two cards and opening two cards a year.

My credit score comes first above and beyond cash back. I am concerned this behaviour would devastate my credit score.

I would like some advice from seasoned credit card holders. Thanks in advance.

Please read this forum below, if you don't do anything else at least read the first thread/sticky topic at the top of the board:
http://forums.moneysavingexpert.com/forumdisplay.php?f=257

Apart from Amex, I don't see why you would want to continually apply / close 2 cards every year? Let alone the fact that by doing this you will substantially be reducing the length of average age of accounts you have held.

philip1427

Here's some more detail

I have a Nationwide Select CC which has a long history. I will never close this CC because it is linking to my bank account.

I want to switch between Amex Gold and BA Amex (no fee) cards each year. At the minute Amex has given me a 7k limit of the BA which is quite substantial when compared with my earnings.

What do you mean about credit history and file? Is this defaults and late payments etc? If so I have none of these

jpsartre

Candyapple wrote: »

Apart from Amex, I don't see why you would want to continually apply / close 2 cards every year?.

Many cards trigger cashback from sites like Topcashback. That might be a reason.

philip1427

jpsartre wrote: »

Many cards trigger cashback from sites like Topcashback. That might be a reason.

I use TopCashback as well especially when buying clothes. I recently got an additional 8% off a hight street retailer on top of my Amex points!

[Deleted User]

philip1427 wrote: »

What do you mean about credit history and file? Is this defaults and late payments etc? If so I have none of these

Your credit files show how you manage credit.

Whether you have missed payments. Whether you are carrying a lot of debt. What available credit you have. How many applications you've made for credit. Whether you pay minimum or more. And so on.

The files are what lenders will look at (not any score given by the credit score fairy).

philip1427

Deleted_User wrote: »

Your credit files show how you manage credit.

Whether you have missed payments. Whether you are carrying a lot of debt. What available credit you have. How many applications you've made for credit. Whether you pay minimum or more. And so on.

The files are what lenders will look at (not any score given by the credit score fairy).

OK so I have never missed a payment and a don't carrying any debt. I always pay it off at the end of the month. However I do make about two CC applications a year so would like have a great affect on my credit file?

Thanks in advance

[Deleted User]

Two applications isn't a big deal.

However, an increasing available total limit can worry lenders. As can numerous account closures.

Aim to show some stability.

philip1427

Hi there Amex just increased my credit limit by £3500. Will this hurt my credit score? I though having a large limit but a low precent utilisation was a good thing? It shows you are trustworthy.

This leaves me with a dilemma. I wanted to ask Nationwide for a credit limit increase. At present, my limit is only £1000 and I find myself using 40-50% of this as I put on purchases from merchants that do not accept Amex. How long should I wait until I ask for an increase? Are building societies more cautious of credit cards?