How many is too many?

maverickeastman

Hi,

Hoping for some solid advice.

I moved to the UK about two odd years ago, and was hard pressed to find that my financial credibility in my country of birth counted for less than nothing in the UK. So with much difficulty, I started the process of building my credit profile and score from scratch. I'm very proud to say that as at the beginning of this year - my scores at all the agencies are in the range of Good. Yay!

My question is that along the way to building my score I got a capital one card, an amazon new day card, an AMEX, and a Barclay card. I don't hold any balances on these, and the limits with the exception of AMEX (GBP1500) are ridiculously low. I'm wondering whether I should keep all these cards active or look to increasing the limit on one of them and then close the rest? The logic here, is that I don't want my score impacted, and for future credit checks I want credit providers to know that I manage my available credit well. I also assume that a closed credit card account does not look "good" to credit providers?

I'd appreciate any advice or suggestions. Sorry about the longwinded mail!

Thanks!

M

[Deleted User]

In the UK, we don't use credit scores.

The ones the CRAs give you are just a gimmick, purely for entertainment value So always disregard those and ignore any changes.

All your current limits are very low. Until your limits get excessively high (at least equal to your income), keep all your cards open. Use them regularly and clear in full each month once you get the statement.

Craig1981

s said, keep them open, use them often and clear off in full to avoid interest. Accept any increases that come your way too

[Deleted User]

Nonsense?

So bullding credit history is nonsense?

Section 75 protection is nonsense?

GM1880

Awful advice. Using a credit card in place of a debit card has many advantages.

The main objective from the OP is to build a good credit history. Showing you can reliably use a credit card does that considerably better than the use of a debit card in general.

As for getting into debt, having a credit card offers more temptation, but as long as you can budget it is no more likely to get you into debt.

Keep the cards, use them in place of debit cards, pay off I full each month and don’t spend beyond your means. Follow that advice and you’ll achieve your goal. Ignore the previous ‘advice’ about forgetting credit cards in your case.

[Deleted User]

jeepjunkie wrote: »

Who has ever claimed on section75?

I have. What is it you want to know about it?

[Deleted User]

No debt here sorry.
Cards are paid off in full each month.

Craig1981

jeepjunkie wrote: »

Why do you think you need to use credit cards to build credit and to what end...? Loan heaven, in debt 4ever?


Who has ever claimed on section75?


Have fun in debt...

its not about using and maxing out cards and getting into debt
using a credit card and paying off in full each month is just the same as using a debit card. just a little more work keeping an eye on things

ive used s75 on a couple of occasions

you have posted recently how much you "stooze" to take advantage of offers etc, so why are credit cards bad ideas???

GM1880

Because it builds better credit history, which is the main objective of the OP.

[Deleted User]

jeepjunkie wrote: »

So what is the point over using your debit card...

To build credit history
For S75 protection on purchases over £100
To earn reward points and/or cashback

What’s the point of you posting?

Anthorn

maverickeastman wrote: »

Hi,

Hoping for some solid advice.

I moved to the UK about two odd years ago, and was hard pressed to find that my financial credibility in my country of birth counted for less than nothing in the UK. So with much difficulty, I started the process of building my credit profile and score from scratch. I'm very proud to say that as at the beginning of this year - my scores at all the agencies are in the range of Good. Yay!

My question is that along the way to building my score I got a capital one card, an amazon new day card, an AMEX, and a Barclay card. I don't hold any balances on these, and the limits with the exception of AMEX (GBP1500) are ridiculously low. I'm wondering whether I should keep all these cards active or look to increasing the limit on one of them and then close the rest? The logic here, is that I don't want my score impacted, and for future credit checks I want credit providers to know that I manage my available credit well. I also assume that a closed credit card account does not look "good" to credit providers?

I'd appreciate any advice or suggestions. Sorry about the longwinded mail!

Thanks!

M

Personally, for the sake of my credit history I would keep the oldest card active and close the rest. Lenders like longevity but judge low credit limits on existing credit accounts as suspicious. Assuming that an application for a limit increase results in an examination of a credit history you are more likely to get a limit increase if there is no other available credit on existing cards.

As previously explained, you don't necessarily need credit cards to build a credit history. All you really need is credit accounts which are reported to the CRAs and that could be catalogue accounts, mobile phone contracts, household utilities, rent, etc. Conversely what price a credit account which does not report to a CRA?

Personally, when I was rebuilding my credit history which started some 8 years ago, I covered every section of my credit history but in moderation. The only section which I found difficult was loans and I covered that with a Credit Union which reports to the CRAs - these days most of them do. Whether that filling of every section of my credit history did any good is debatable: My current financial situation says it did!