How many is too many?

enthusiasticsaver · 13 January 2019 at 5:57PM

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

Credit providers do not look unfavourably on closed credit cards and having lots of cards does not necessarily improve your chances of being offered favourable rates on applications or new credit cards. The score does not matter and is much overrated. Just manage the cards you do have well by paying them off in full each month and don't keep applying for new credit.

johnbhoy10 · 13 January 2019 at 6:29PM

enthusiasticsaver wrote: »

Lots of bank accounts, debit cards offer rewards. I have a 123 Santander account and usually accept the cash rewards which come up every month on various retailers. Halifax and Nat West also offer rewards as does Lloyds Club accounts.

I don't have an issue with people choosing to use credit cards for cashback/rewards etc and do it myself with the JL partnership card and Santander 123. When it does become an issue is when people think the credit limit means they can spend up to that and then get into difficulties with repaying it. If you have financial discipline then it is not an issue but sadly there are lots who use it as the easy option to buy things when they really cannot afford them.

Don't disagree with a word you're saying there and i obviously know about a Santander 123 as i think my dad has one however i think they charge a small fee per month whereas Amex (for mine anyway) are free when you clear balance every month. I also refuse to do any business in future with Santander who in my opinion are a hideous outfit!!

Fair point too about credit limits too but to honest with you i would question someone having a bank account never mind cards if they're running limits to the max!! Surely overdrafts on some accounts can cause similar problems??

How many is too many?

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