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Thread: How many credit cards is a 'bad thing'?

  1. #1

    How many credit cards is a 'bad thing'?

    I don't expect there to be a definitive answer but I'm just wondering as far as your credit rating goes - can too many (if that is such a thing) harm you? Used properly (paid off on time) of course.

    This will be old news to probably most of you but it was only yesterday I learned about Tesco savings removing their direct debit feature.

    So at the moment come April I'll either be losing a number of accounts or I'll have to do something about it and the interest over the course of the year is a bit to pass up so easily.

    I worked out we'd need 14 direct debits just for my wife and I (I also help out with my mothers, sisters & brothers but that's something else).
    I can move some direct debits where the amount is consistent away from my wages account and on to other accounts but it'd still be a good few credit cards in use just to create a new direct debit.

  2. #2
    Too many us when any given lender considers you have too much available credit. The varies hugely by lender. A rough guide sometime quoted is to keep available credit below your annual salary. However, if well managed, that needn't apply.

    There is no universal' credit rating'.

  3. #3
    Thanks for the response.

    I think what i'll have to do is see which accounts are worth the most to me and then whittle them down and then let go of those not offering much.

  4. #4
    I have fourteen credit cards. Am I bad?

    Available credit is probably more important to potential lenders than the number of credit accounts you have.

    It's still possible to use PayPal for free DDs. It's no longer possible to use them to fund your account, however you can use them to send money as gifts to 'friends' and 'family'. PayPal might get a bit squiffy about punters pinging money back for forth.

    Savings accounts offered by Chip and Plum offer two other DD options. But you do have to give them access to your bank account and there is a small risk they may go bust and take your savings with them.

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