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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Just picking up on the "don't close credit cards ever" thing, surely there's a limit to this? Won't a prospective new 0% cc provider see I already have 20k of credit available and then give me a lower limit in order to not give me too much overall available credit? I closed the largest of mine recently (15k) but am purposefully keeping my oldest card of 5k open, the idea being it's a much longer standing credit account, which I presume is viewed as positive.
 
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Zefan said:
Just picking up on the "don't close credit cards ever" thing, surely there's a limit to this? Won't a prospective new 0% cc provider see I already have 20k of credit available and then give me a lower limit in order to not give me too much overall available credit? I closed the largest of mine recently (15k) but am purposefully keeping my oldest card of 5k open, the idea being it's a much longer standing credit account, which I presume is viewed as positive.
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I've never even bothered to think of it like that; I just close them because if I don't, I'll get stung by the "you can't have been a new customers in the last 12 months" clause.
 
Zefan said:
Just picking up on the "don't close credit cards ever" thing, surely there's a limit to this? Won't a prospective new 0% cc provider see I already have 20k of credit available and then give me a lower limit in order to not give me too much overall available credit? I closed the largest of mine recently (15k) but am purposefully keeping my oldest card of 5k open, the idea being it's a much longer standing credit account, which I presume is viewed as positive.
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I keep some open. Every time I open one, after it's open I close an old one.

Allows me to keep a good chunk of empty credit to keep the utilisation low
 
What are we talking in terms of overall available credit that's acceptable then on a given salary? I presumed it was linked to salary... If not, why do they ask :confused:

For example I had
1st card: 3k limit on my first (upped it to 5k during 0% period)
2nd card: ended up being 15k limit

I presumed that this second card would be based on my overall available credit (which, at 5k with a tactically low amount utilised, was seemingly ideal at the time of opening the second). Are you guys telling me you're opening multiple 15k+ CCs back to back (after 0% period ends) ad infinitum on 50k declared salary?
 
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413x said:
I keep some open. Every time I open one, after it's open I close an old one.

Allows me to keep a good chunk of empty credit to keep the utilisation low
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What are you all doing that needs opening and closing credit cards all the time?

I have one CC I've had for 15+ years with a decent limit on it. It gets auto paid off every month, it's just an alternative payment method, the credit side is pretty irrelevant to me.
 
mid_gen said:
What are you all doing that needs opening and closing credit cards all the time?

I have one CC I've had for 15+ years with a decent limit on it. It gets auto paid off every month, it's just an alternative payment method, the credit side is pretty irrelevant to me.
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Personally, I open them for sign up bonuses, because old products have been closed / devalued, and for balance transfer offers.

That usually leaves me opening at least a couple each year.
 
I don't have any credit cards i don't see the need for one
I just use my Debit card for buying & Paying everything

What do you guys need or use a credit card for ???
 
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mid_gen said:
What are you all doing that needs opening and closing credit cards all the time?

I have one CC I've had for 15+ years with a decent limit on it. It gets auto paid off every month, it's just an alternative payment method, the credit side is pretty irrelevant to me.
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Some as above are rewards chasers, which is one way to benefit, but the other main one is to load it up during the 0% period and put the money that you have offset in to something that grows. You then pay the credit card off before the 0% interest period expires and you essentially pocket lots more interest/growth on your savings/investments than you would have otherwise been. Most people do it with cash savings accounts as doing it to stocks and shares could leave you *big expose*.
 
Zefan said:
What are we talking in terms of overall available credit that's acceptable then on a given salary? I presumed it was linked to salary... If not, why do they ask :confused:

For example I had
1st card: 3k limit on my first (upped it to 5k during 0% period)
2nd card: ended up being 15k limit

I presumed that this second card would be based on my overall available credit (which, at 5k with a tactically low amount utilised, was seemingly ideal at the time of opening the second). Are you guys telling me you're opening multiple 15k+ CCs back to back (after 0% period ends) ad infinitum on 50k declared salary?
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My total available credit is 50% more than my current earnings according to my self assessment!
 
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