A relatively simple question that is often asked about credit cards - how many credit cards can you have before the number begins affecting your ability to get new credit cards or other financial products?
The answer is not quite as clear cut as you might think and in the UK, it is less clear than in the United States where these things are a little easier to find information about.
To answer the question fully, I discuss the number of credit cards you should have from a philosophical, practical and technical perspective.
I'l take you through the inner workings of how credit cards affect your credit, what you should consider if you think you might be getting too many credit cards and how much of an impact they really do have on your credit profile.
Video I referenced about the advantages of using credit cards over debit cards: https://youtu.be/iHYqBBcSbk8
The answer is not quite as clear cut as you might think and in the UK, it is less clear than in the United States where these things are a little easier to find information about.
To answer the question fully, I discuss the number of credit cards you should have from a philosophical, practical and technical perspective.
I'l take you through the inner workings of how credit cards affect your credit, what you should consider if you think you might be getting too many credit cards and how much of an impact they really do have on your credit profile.
Video I referenced about the advantages of using credit cards over debit cards: https://youtu.be/iHYqBBcSbk8
About closing older unused CC – will that not affect your credit as your overall credit history will appear shorter, making your credit rating drop.
My first credit card has a rate of 49.9%. It’s got over two years history. I’ve read closing your first card can be a bad idea. My second card was opened roughly 6 months later tho so there wasn’t much gap in history.
7 here
Lloyds 2
American express 2
Tsb 1
Capital one 1
Tesco bank 1
Trick is pay off on statement date not on payment date.
If you're going to buy a Canada goose jacket for £1000 don't bother with a credit card or purchasing any random s#/t you don't need.
will closing a credit card affect my score negatively?
Hey Sasha,
With all due respect I don’t agree with some points you are raising here.
Having multiple credit cards doesn’t hurt your credit score, how you use your credit cards can either hurt or boost your score.
The more credit cards you have the higher available credit you have, if you maintain your balances and pay them off, then you have a higher utilisation, that in itself accounts for 30% of your overall credit score.
Also if you add a new credit card to your wallet, then don’t use it much, that would also increase your utilisation from it’s previous level and ultimately help your score.
Simply put, the number of credit cards don’t matter, it’s the number of credit cards you leave an outstanding balance on, or when you push your credit card utilisation too high that negatively impacts a credit score.
Recently got 4 credit builder cards:
Amazon Classic- £500,
Aqua Classic- £300,
Argos – £250
Ocean Finance- £200
with the aim of building up credit faster so I can be eligible to apply for Cashback credit cards like Amex. Also aim to control my credit utilisation at below 30%. Is that too many cards for my situation? My Experian score is 717 (poor brand)
A lot of the US finance guys suggest that you should never close your first credit card or bank account as they help with the history on the credit score…
Does that apply in UK as well or it has no influence on the credit history here?
No many is too many. It will depend on whether you could still take benefit of it vs downside for you (e.g Count toward the credit limit).If you are offfered zero fee zero interest BT or MT card, take it.
I have 4 cards. 3 with around £4000 and an Ocesn one with £200. I've been thinking about cancelling it for a while, as it's useless to me. I'm worried it'll hurt my credit score while looking to get a mortgage
Amex Everyday Cash-back and a HSBC rewards card so that I’m getting money back even when I can’t use the Amex.
Hi I have just used your link to reg with freetrade, I was unable to complete the application, I confirmed on the email link but it said they need to identify me and this will take 48hrs, is this the norm
Dave
Hello buddy!
I have 2 questions for you :
1. I have actually two credit cards. Gold amex and hsbc credit card.
I never use the hsbc one. Does that affect my credit score ?
2. I tried to apply for another credit card they they refused my application although I have an excellent credit score
Thanks 😊
Hi Sasha,
I’m 19, I used the Amex everyday platinum and the Amex British airways. Mainly because I want cash back and flight points. I am never actually in debt I run most of business expenses through them and they get paid off instantly. Honestly I’m thinking of upgrading to the gold due to how much I spend.
Do you think it’ll worth me applying for more to gain more benefits, I’ve not really shopped around for cards. I just like watching the YouTube videos tbh
Hi Sasha, Whats your view on cancelling credit cards and the impact this has on credit report/score? Amex Gold is free for the first year as you are probably aware. Is it smart to get this card and cancel after the year?
Amex, for collecting points and everyday use. Nationwide for the interest free introduction perk and overseas transactions and also use where I cannot use Amex. I have a Barclaycard that I used previously to build my credit history but do not use it much any more.
is a minimum payement worse for credit score than a full payment (after statement).
Thanks for making this video
I have 2 credit cards Halifax clarity card 19% APR for withdrawing currency abroad 6 – 8 times per year (always pay off the card balance that night) also have Royal bank of scotland/ Natwest world credit card for everyday buying in the uk and abroad No fees and 9.9% APR and have a Caxton pre pay credit card incase i lose my cards abroad and i can load it via the app in order not to destroy my trip. Used to have halifax flexi card but the RBS one was better so cancelled it.
Great video thank you
I'm 19 and got my first credit card after watching your video of the best beginners credit cards
Great video! I have 4 at the moment – Amex Platinum Cashback Everyday which I use most often, Tesco Credit card for where Amex isn't accepted, Nationwide Select for use abroad and HSBC Student Credit card which I use occasionally for cashback offers with specific retailers
How many credit cards have you got and what do you use them for? Leave a comment and tell me if you think you might have too many!
Great content, as usual!