How many cards?

Stevenj214

How many cards would be ideal for building up your credit history and how often should you use them?

I currently have a Royal Bank of Scotland card with a £800 limit and i'm waiting on my Egg card coming through with a £1250 limit. I have an income of £12500p/a so have 16.4% of my annual income available as credit.

Reaper

Getting a 3rd or 4th card is not going to make much difference either way, as long as you have at least one which shows on the Experian report and one which shows on the Equifax report.

Much more important is to make 1 or more purchase on them both every month and make sure you pay it off on time. The amount you spend is not recorded, just the fact you made the payments on time each month.

And of course make sure you are on the electoral role.

Have a read of the Credit Rating article (blue box above) if you have not already.

grumbler

Stevenj214 wrote:

How many cards would be ideal for building up your credit history and how often should you use them?

Your two cards are enough for this purpose. Use them monthly for purchases and pay balance in full. Or if you have 0% introductory period and some balance, make minimum payments. It is very important not to miss payments - I'd recommend DD.
You can apply for other cards, but only if you do need something special: cashback, rewards, 0% offer, ... Every application, even successful, impaires you credit history for at least 6 months.

Stevenj214

Thanks, i'll just stick with the 2 at the mo then so as not to complicate things.

Another question about credit cards... my Egg is 0% till december, but interest is payable on the RBoS card, so how does it work in this situation:

Statement comes through for £100 payable by the 10th next month, before the payable date I make another purchase of £100 then also before the payable date I make a payment of £100.

Does this count as 'paying off the balance in full' or not?

grumbler

Stevenj214 wrote:

Statement comes through for £100 payable by the 10th next month, before the payable date I make another purchase of £100 then also before the payable date I make a payment of £100.
Does this count as 'paying off the balance in full' or not?

YES. However, in your case it is worth moving most of your spending to 0% Egg card, make minimum payments and put 'saved' money into saving account. In December (1st Dec, not the payment date!) use this money to pay Egg balance in full and keep a small interest earned.

'Make Free Cash from Credit Cards' article - 'an alternative method'.