changing from 2 credit cards to 1 a good idea?

ian016

Hi, I'm not a new user by the way, I couldn't get into my old account so I've had to create a new one.
          Anyway I have a quick question for you helpful people regarding whether I should change from 2 cards to 1 as I was thinking of doing because I have started changing my banking to all one place (Barclays)   I have a Barclaycard with a £400 limit and a Halifax with £1600. I don't need the credit as such as I pay in full every month, I just wanted to build a credit history. I was considering cancelling the Halifax card in a couple of months time and then maybe ask for a slightly higher limit on the Barclaycard 6 months or so afterwards. I use both cards for grocery shopping or other small purchases (up to £500/month for both to keep utilisation at 25% max) anything else goes on debit card. I am just aiming to simplify things for myself but wanted to check in case I have missed something potentially harmful to my score etc. or I'm being a twonk by reducing my potential credit amount? Thanks in advance.
       

Paully28

forget your score as it means nothing. 
However, I would always have two credit cards just in case the visa network has issues, your bank has issues, which makes one card unavailable when you need it. You always have at least one backup. 

[Deleted User]

You have such small limits, that you need to at least keep the two you have, both for credit building purposes and as back ups.  

Apply for another couple in due course. Once you have half a dozen that meet your needs, you could consider closing down the least appealing if you really want to, but there's generally no need.

There's also need to cap your spending if you're clearing in full each month.  Put everything through on your credit cards, as long as you stay below the limit.

ian016

Thanks for your replies. That makes sense, I think I was jumping the gun really. Keeping 2 I understand, but what are the benefits for having 4 or even 6 cards? Surely that is more of a headache to keep on top of, or is it the only way to really build your limit up?

cymruchris

If you'd closed the Halifax with a £1600 limit - Barclays might still have said no to a credit limit increase. Better to keep them both, use them regularly, pay in full, and over time with good financial management you should see that Barclays limit rise. (You can apply for a rise every so often anyway through the web browser). In answer to what are the benefits - it depends on the cards. When I got my first cards after bankruptcy they were high APR low limit cards - that was fine as I paid in full each month. 

As time progressed, I kept using and repaying, and eventually I was approved for an Amazon platinum card - and have made about £100 in Amazon vouchers from it over the space of a year, along with a £20 voucher for joining. My Barclaycard was initially a forward card for poor credit, but after a year of full payments, I rang them up and they transferred me to the cash rewards card, and now get 0.25 percent cash back - not a lot I grant you - but every penny is a penny more than I had before I got it. I also have a Topman (Topshop/Burtons etc) card - and have gained about £25 of Arcadia vouchers out of that one. All the while I haven't paid a penny in interest on any of them. 

If your long term goal is to get a mortgage, having a few well run accounts with reasonable limits will usually go in your favour. 

[Deleted User]

It's not difficult to manage half a dozen cards or even more.  Set up full pay DD on each (unless any are BT offers) and use as required - forex, cashback, points at retailers, whatever suits your need at the time. 

It also helps to show that more than one or two lenders trust you with credit.

Having multiple cards is only a problem if you can't control your spending and don't know how to make payments on time.

Paully28

ian016 said:

Thanks for your replies. That makes sense, I think I was jumping the gun really. Keeping 2 I understand, but what are the benefits for having 4 or even 6 cards? Surely that is more of a headache to keep on top of, or is it the only way to really build your limit up?

Not too difficult as long as you set at least a DD to pay the minimum payment each month, and have at least a glance at your payments in and out on your statement. Doesn't take too long.
I have more than 2 as I have gathered new ones over the years for the benefits, sign-up bonuses and vouchers, like my most recent one with Amazon is paying dividends already with the amount I spend there.