Use 2 credit cards or 1?

Stuart_Kirk

I'm a student, so obviously debt is a big issue.

In order to help myself out a bit, i tend to put as much of my expenditure as possible onto a credit card, leaving the cash to cover it in savings until it's time to pay the balance in full.

Until recently I have used my Egg card to spend on, despite having a Barclaycard as well, for the following reasons:

- Egg paid cashback so i earnt a tiny bit more with them.

- Opened barclaycard for 15 month balance transfer offer, which ended in Aug, so couldn't spend on it.

But now, things have changed. The barc offer ended so I cleared the debt with the money to cover it from my savings A/c. Also, I understand Egg pay absolutely no cashback on regular purchases, so that incentive no longer exists. Also, Egg statements have to be paid in 14 days whereas Barc is a month, meaning money is in savings for a little longer.

So given current circumstances, it seems I should use the Barclaycard, which I am doing. But I am keen to improve my credit score, if at all possible, ready for other more important debts to follow my graduation. The advice I need is whether this is done more effectively the bigger each payment is, in which case all my spending would go on the Barclaycard, or whether it is the number of successful repayments, so I should use both to double the number of payments I make.

I don't really want to close either card, in order to take advantage of Egg's anniversary BT offers...

Any help or advice gratefully appreciated.

grumbler

Have a look at 'Your Credit Report Explained' booklet
(http://www.experian.co.uk/ => => Downloads ).
You will see that the only information reported to CRAs is:
- Credit limit;
- 'Status Codes' that show only status of account on monthly basis.

Monthly spending and amount of payment are not reported. I don't see any difference between using only one card and using both cards.

Rafter

Stuart,

Suggest you see if egg will offer you a 'money' card.

That way you can have your cake and eat it by earning cashback on purchases and taking advantage of your anniverssary offer on your green card.

R.