Does too many credit cards affect your credit rating. 26 July 2018 at 9:27PM in Credit Cards 4 replies 1K views

paye

Just wondering if you have many credit cards with large limits, does this affect your credit rating?

Currently I have the following cards:

Barclay Platinum credit card with £11k limit with £0 balance,

Tesco Credit card with £8,000 limit with £5k balance ( currently paying £500 p/m toward it with 0% interest.

I also applied for a Halifax Clarity card yesterday just because I am going away on holiday in a couple weeks and didn't want to take too much cash with me. I got approved straight away with £11k limit even though I only wanted £3k.


Is 3-4 credit cards to many to have?

T-G-C

The answer is quite dynamic, as it depends on a few things such as how old the accounts are and previous records of usage etc.

Generally, 3-4 shouldn't have a massive negative impact, but I would let them age for now before continuing to open any new credit card accounts.

Your limits and low total credit usage is a positive factor, therefore this could counterbalance some negative impact from having multiple accounts, especially if they are not matured.

sparkey1

No. I have 8.

Its how you use them. Across all card, 2 thresholds to bear in mind. 50% utilisation, and 30% utilisation.

Always pay on time, never close unless they start imposing fees.

Obviously dont go out and open multiple ones too quickly. Always accept a credit increase but dont spend it!

[Deleted User]

No since you don!!!8217;t have a credit score/rating to be affected.

Your credit affordability may be affected though in the eyes of lenders

pochisoldi

paye wrote: »

Tesco Credit card with £8,000 limit with £5k balance ( currently paying £500 p/m toward it with 0% interest.

Why aren't you paying the minimum balance, and sticking the £500 in a savings account (or if you have it, an offset mortgage)?

The only exception to this rule is with a 0% on purchases card with cashback, which offers a better cashback rate than any other card you hold, is maxed out and cashback on spending offers a better rate of return.

PochiSoldi