Too many credit cards? aka "The Credit Card thread"

0% is a sort of different game to the above though. I should use a 0% card but this way I don't have to juggle anything and I still get some cashback etc.

I think 0% makes more sense if you're planning some larger spends.
 
bloodiedathame said:
I only take 0% cards, and pay off the minimum rather than full, then at the end of the term balance transfer to another 0% card (this sometimes incurs a fee).

Currently on a 0% Capital One card, had a Santander with £12k credit limit on... £7k now.

We tend not to use it for day to day stuff, but do put unexpected stuff on it or big purchases that might benefit from additional cover.
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I have started doing pretty much the same thing a couple of years ago, but I'm on like my third 0% card now, with all the others still open but sitting in a drawer.

I'm a bit confused if I should start closing them or not. All advice I see seems to be you shouldn't close credit cards ever,, but there are only so many lenders providing 0% cards before you come across the ones with weird requirements or unheard-of companies I'd rather not deal with (I remember M&S wanting written references from 2 people, or something to that effect?!).

Once I've done the rounds with all the major banks, surely I can't open up a second CC with one provider if I've still got an old, previously 0% card still open with them? Or can I?

If you just end up endlessly doing this, do you end up with a drawer full of old credit cards after a few decades?!
 
Chuk_Chuk said:
Why??? :confused:
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Not financial advice etc (and I'm not an expert in this field at all, so someone correct me if I'm talking nonsense), but it boils down to more cards = more available credit to your name, and also age of your accounts, both of which will reduce and might hit your credit score if you close an account. Probably a small one, but a hit nonetheless. "never close ever" was a bit hyperbole - there are exceptions, but general advice seems to be just leave them open
 
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Smeghead said:
Not financial advice etc (and I'm not an expert in this field at all, so someone correct me if I'm talking nonsense), but it boils down to more cards = more available credit to your name, and also age of your accounts, both of which will reduce and might hit your credit score if you close an account. Probably a small one, but a hit nonetheless. "never close ever" was a bit hyperbole - there are exceptions, but general advice seems to be just leave them open
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Okay. It seems like people are getting caught up in the numbers game and forgetting about the utility of said number. Unless you plan on getting a mortgage or some sort of large loan within the next few years The dip in credit score is irrelevant. It should also recover at somepoint. Not that big of deal.

Has anyone actually done an investigation on the actual monetary benefit of a high credit score or is it all mostly speculation?
 
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I tend to balance having same credit as my salary.
It seems to be a sweet spot for me.

I'm not sure how much of this is true but having empty credit cards shows you can use credit responsibly.
Using under 25pc per card is positive as above.
Opening loads of cards or closing loads isn't good.

Its not really any more complex than that.
 
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Smeghead said:
I have started doing pretty much the same thing a couple of years ago, but I'm on like my third 0% card now, with all the others still open but sitting in a drawer.

I'm a bit confused if I should start closing them or not. All advice I see seems to be you shouldn't close credit cards ever,, but there are only so many lenders providing 0% cards before you come across the ones with weird requirements or unheard-of companies I'd rather not deal with (I remember M&S wanting written references from 2 people, or something to that effect?!).

Once I've done the rounds with all the major banks, surely I can't open up a second CC with one provider if I've still got an old, previously 0% card still open with them? Or can I?

If you just end up endlessly doing this, do you end up with a drawer full of old credit cards after a few decades?!
Click to expand...

More cards = better utilisation (as long as they don't get used) = better credit score.
 
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Chuk_Chuk said:
Has anyone actually done an investigation on the actual monetary benefit of a high credit score or is it all mostly speculation?
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If my understanding is correct, in the UK your score means nothing (banks use their own judgment, etc.) but in other countries (I’m thinking mostly of the US) your score means everything and is the basis upon which money is loaned out.

A crude example for the UK might be someone with a credit score of 999 taking out 3 cards over 2-3 months and dropping the score to 940, they’re declined a loan or mortgage whereas someone with a score of say 890 who hasn’t taken out anything in the past 2 years gets approved for the same loan or mortgage.
 
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