Lots of credit cards - does this affect my credit rating?

NicNocs

I'm tempted, very tempted, by the amount of money I can make through cashback websites (such as Top Cash Back, Greasy Palm, R Points etc) by applying for new credit cards. I have no intention of using the credit cards, just want to get the cash back and then close them again, but would this amount of "applying for new credit cards" affect my credit rating? I have a higher than average income and always pay off the credit cards that I do have in full every month. Many thanks for any answers/replies that come this way!

ShelfStacker_3

Lots of applications make you look desperate for a source of cash and will pooch your credit rating. 10 spaced out over a year, fine; more than that is a no no.

jonesMUFCforever

I agree plus a new card issuer can see your potential spending 'spree' ie the total amount of credit available to you so the more you have the greater the reason for declining you or giving you small limits.

It is a good idea to formally close obsolete accounts.

clio

How many cards is a person who,s income is in the £15.000 bracket able to have with in reason. is 4 to many ??

Volcane

I have applied for 10 in last 6 weeks (and had 1 Capital One prior).

6 accepted (Goldfish, Barclaycard, Egg Money, A&L, Post Office & Virgin)
3 declined (Natwest, Amex Nectar, Tesco)
1 awaiting decision still (Amex)

It DOES affect your credit rating as correctly stated but that will improve over the months that you no longer apply. The question you gotta ask yourself is can you live with the hit to your credit rating over next 12 months or so (eg. remortgage, buying new furniture on interest free credit etc)

If yes then no harm done.

If you will need possible credit, or like to be cautious in case of any unforseen events then don't take the risk.

Snooze

clio wrote: »

How many cards is a person who,s income is in the £15.000 bracket able to have with in reason. is 4 to many ??

There are no rules on it. If each card only has a small limit then you could probably have 20 or more if you wanted. As long as you pay them all back by the due date then there's no limit to the physical amount of cards you could have. What will limit you is your total available credit vs. your income (the ratio of which I can't recall at the moment).

Rob

gowgowuk

Snooze wrote: »

What will limit you is your total available credit vs. your income (the ratio of which I can't recall at the moment).

Rob

I remember seeing that somewhere: an attempt to list Credit cards credit limits as a % of the salary (for people with an excellent credit record) and I've trying to find it again without success. If someone has this kind of info, I would be very interested too!
Philippe

woozywendy

We are in the 15000 income and had 4 credit cards and a total limit of £28000 on them and a £2950 o/d agreement. Thankfully owe nothing to any of them and all cards cut up and cancelled. Bt are doing a card at the moment where you can have the limit (i think) transferred to your current account for a year for 0%. You must have the will power to not spend the money though and leave it in a high interest account.

gowgowuk

Salary ~ £31000 and 4 CC with total credit limit of £11300 + £750 overdraft, actual credit: £6300 on a 0% 15 month deal (stoozing).
I guess I can try a few more then? I applied to Halifax 0% on BT for 15 months but still waiting for the decision.