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  • FIRST POST
    • maverickeastman
    • By maverickeastman 4th Jan 19, 5:00 PM
    • 5Posts
    • 1Thanks
    maverickeastman
    How many is too many?
    • #1
    • 4th Jan 19, 5:00 PM
    How many is too many? 4th Jan 19 at 5:00 PM
    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
Page 2
    • Anthorn
    • By Anthorn 6th Jan 19, 3:36 PM
    • 4,269 Posts
    • 1,180 Thanks
    Anthorn
    I wasn't challenging your statement about longevity, which, as you say, is common knowledge, but I still haven't seen or heard anything that endorses your view about how lenders "judge low credit limits on existing credit accounts as suspicious" and can't see anything to that effect on Clearscore. You might be right that OP would be looked on more favourably if they keep their highest limit CC and close the rest on the basis that they have low limits, but it would surprise me if it was that simple, hence asking if there was anything that endorsed your suggestion.
    Originally posted by eskbanker
    Oh dear, can you hear me sighing from there?

    On my clearscore report the first page I see after clicking on "Report" states:
    Things you're doing well

    You don't have any court judgements, bankruptcies or Individual Voluntary Arrangements
    You have no accounts in default or repossession
    You have held at least one of your accounts for several years
    Very few/none of your accounts have overdue payments
    Your largest credit card limit is relatively high
    You have stayed within your credit card limit in the past year
    You're using a small amount of your total credit card limit (below 50%)
    Your current Telecoms balance is relatively low
    Sounds like a strawman argument to me, I don't see anyone claiming that re/building a credit history is dependent on credit cards, although some posters have rightly taken issue with one poster's dismissal of credit card use as 'nonsense'
    Originally posted by eskbanker
    i.e. in this thread? Also you can see it in numerous other posts: People tend to equate "Credit History" with "Credit cards" as if that is the only form of credit which will build a credit history. As I said, that is a fallacy.

    Are you criticising my post just for the sake of criticism or do you have a point to make? If so what is your point?

    If you wish to disagree with what I have posted then you will need to post qualifying links.
    Last edited by Anthorn; 06-01-2019 at 3:38 PM.
    • eskbanker
    • By eskbanker 6th Jan 19, 5:03 PM
    • 9,078 Posts
    • 10,505 Thanks
    eskbanker
    On my clearscore report the first page I see after clicking on "Report" states:
    Things you're doing well

    You don't have any court judgements, bankruptcies or Individual Voluntary Arrangements
    You have no accounts in default or repossession
    You have held at least one of your accounts for several years
    Very few/none of your accounts have overdue payments
    Your largest credit card limit is relatively high
    You have stayed within your credit card limit in the past year
    You're using a small amount of your total credit card limit (below 50%)
    Your current Telecoms balance is relatively low
    Originally posted by Anthorn
    You obviously feel that this supports your view on low limits in some way, but, again in the context of you recommending to OP that they shut down lower limit cards, the Clearscore quote refers to size of 'largest credit card limit', as well as the benefit of a low total utilisation percentage (which obviously increases if closing cards). Worth bearing in mind too that this is just Clearscore's perspective, which obviously isn't necessarily indicative of how lenders see things.

    i.e. in this thread? Also you can see it in numerous other posts: People tend to equate "Credit History" with "Credit cards" as if that is the only form of credit which will build a credit history. As I said, that is a fallacy.
    Originally posted by Anthorn
    I don't disagree that it's a fallacy, but still don't see anyone in this thread claiming that credit cards are the only way to build credit history! I can't say I've gone looking for such claims elsewhere but if you disagree with what 'people' are posting on other threads then why not take it up with them over on those?

    Are you criticising my post just for the sake of criticism or do you have a point to make? If so what is your point?
    Originally posted by Anthorn
    My point is that, not for the first time, your opinions on credit management are at odds with many others' and so, in the context of an OP looking for guidance, I was wondering if you actually had anything meaningful to back them up. I now have my answer, thanks, and hopefully so does OP and anyone else still reading....

    If you wish to disagree with what I have posted then you will need to post qualifying links.
    Originally posted by Anthorn
    Kind of you to invent some new posting rules, I look forward to you following them!
    • Anthorn
    • By Anthorn 6th Jan 19, 5:22 PM
    • 4,269 Posts
    • 1,180 Thanks
    Anthorn
    You obviously feel that this supports your view on low limits in some way, but, again in the context of you recommending to OP that they shut down lower limit cards, the Clearscore quote refers to size of 'largest credit card limit', as well as the benefit of a low total utilisation percentage (which obviously increases if closing cards). Worth bearing in mind too that this is just Clearscore's perspective, which obviously isn't necessarily indicative of how lenders see things.

    I don't disagree that it's a fallacy, but still don't see anyone in this thread claiming that credit cards are the only way to build credit history! I can't say I've gone looking for such claims elsewhere but if you disagree with what 'people' are posting on other threads then why not take it up with them over on those?

    My point is that, not for the first time, your opinions on credit management are at odds with many others' and so, in the context of an OP looking for guidance, I was wondering if you actually had anything meaningful to back them up. I now have my answer, thanks, and hopefully so does OP and anyone else still reading....

    Kind of you to invent some new posting rules, I look forward to you following them!
    Originally posted by eskbanker
    The whole of your post is just banter. It doesn't say very much at all and certainly is not qualified and equally doesn't contribute anything but banter to the discussion. If you disagree there must be an alternative so what is that alternative and where is the qualification? If you don't disagree what is the point of your post?

    On my own account I have qualified my post with a quote from Clearscore. If what I say is a figment of my imagination and at odds with others where did Clearscore get it from?
    Last edited by Anthorn; 06-01-2019 at 5:26 PM.
    • Gary_Dexter
    • By Gary_Dexter 6th Jan 19, 7:14 PM
    • 3,113 Posts
    • 1,799 Thanks
    Gary_Dexter
    Because all CRA’s say things to get you to improve an imaginary score and rating.

    Clearscores purpose is to promote cards and loans etc and to make money from referrals.

    The CRA “advice” is to be taken with a pinch of salt
    • johnbhoy10
    • By johnbhoy10 13th Jan 19, 12:14 PM
    • 424 Posts
    • 101 Thanks
    johnbhoy10
    If played correctly credit cards can save you 1000's in the right circumstances. I have a Flybe credit card that, for me anyway, has done just this in the last few years. Used to get 4 of us flown up to my mums for approx quarter of the normal cost (maybe less) but sadly they've stopped the route now!! Still need to try and get rid of 6 UK and 3 EU vouchers (pay taxes only) in the next 6 months or so.....but hey, they cost me nothing!!

    Only got back into Amex again in the summer because of this and since then i've saved 100's . Their opening account and ongoing offers are a goldmine and December past was brilliant!! Off the top of my head highlights were linking MR points to Amazon for very decent reductions, 10% off Morrisons for whole month and 10 off 30 for fuel at BP. That last one was used 6 times between me and my wife. Even put a couple of small donations towards charities That's not even bringing Avios into it which i haven't used yet but hope to do in future!!

    Here's a quick example...time it right, which admittedly i didn't this year, and you easily end up with 200 worth of Sainsburys vouchers from Nectar Amex when Sainsburys ran their double points offer. Have a partner????....then double it!!!

    Until a week ago i was running 6 Amex cards alone.....cut that back to 3 now!! If their offers are still running in 6 months from now i'll rinse and repeat!!

    Don't know of any debit cards or bank accounts that offer you this kind of stuff for nothing!!

    2 rules only-

    DON'T change normal spend

    and set up D-D to clear every month!!

    ps- i'm not even a big player and haven't got into Avios yet!!
    Last edited by johnbhoy10; 13-01-2019 at 12:17 PM. Reason: .
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jan 19, 4:52 PM
    • 7,675 Posts
    • 17,077 Thanks
    enthusiasticsaver
    If played correctly credit cards can save you 1000's in the right circumstances. I have a Flybe credit card that, for me anyway, has done just this in the last few years. Used to get 4 of us flown up to my mums for approx quarter of the normal cost (maybe less) but sadly they've stopped the route now!! Still need to try and get rid of 6 UK and 3 EU vouchers (pay taxes only) in the next 6 months or so.....but hey, they cost me nothing!!

    Only got back into Amex again in the summer because of this and since then i've saved 100's . Their opening account and ongoing offers are a goldmine and December past was brilliant!! Off the top of my head highlights were linking MR points to Amazon for very decent reductions, 10% off Morrisons for whole month and 10 off 30 for fuel at BP. That last one was used 6 times between me and my wife. Even put a couple of small donations towards charities That's not even bringing Avios into it which i haven't used yet but hope to do in future!!

    Here's a quick example...time it right, which admittedly i didn't this year, and you easily end up with 200 worth of Sainsburys vouchers from Nectar Amex when Sainsburys ran their double points offer. Have a partner????....then double it!!!

    Until a week ago i was running 6 Amex cards alone.....cut that back to 3 now!! If their offers are still running in 6 months from now i'll rinse and repeat!!

    Don't know of any debit cards or bank accounts that offer you this kind of stuff for nothing!!

    2 rules only-

    DON'T change normal spend

    and set up D-D to clear every month!!

    ps- i'm not even a big player and haven't got into Avios yet!!
    Originally posted by johnbhoy10
    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.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • enthusiasticsaver
    • By enthusiasticsaver 13th Jan 19, 4:57 PM
    • 7,675 Posts
    • 17,077 Thanks
    enthusiasticsaver
    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
    Originally posted by maverickeastman
    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.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • johnbhoy10
    • By johnbhoy10 13th Jan 19, 5:29 PM
    • 424 Posts
    • 101 Thanks
    johnbhoy10
    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.
    Originally posted by enthusiasticsaver
    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??
    Last edited by johnbhoy10; 13-01-2019 at 5:31 PM. Reason: .
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