Credit Card Faq

Feb 06, 2006 2 Replies

I have three credit cards, one has a 12000 limit with zero balance. The second has a 6500 limit also with a zero balance. The third has a 9000 limit with a 2500 balance as I have been rate tarting recently which explains the three cards.



I have no intention of using either of the cards for purchases and will probably look for another card once my interest-free period is over. Should I definitely cancel all the cards or only the zero balance cards and how will this look to lenders i.e. is it better to have three cards or only one with a balance?



Many thanks


"Ralph Malph" wrote

Depends on the lender in question....

Having a couple of different cards can sometimes be seen as good - a scoring process might look kindly on the fact that more than one institution has welcomed you.

A scoring process I have seen, and which is used in the high street, gives a slightly better rating for someone having both a Visa and a Mastercard instead of two of one. However, this same scoring process frowned on someone having too many cards. If someone had more than 5, they were always flatly refused.

Check out

formatting link
to download a free Windows application that will give you an idea of what your rating might be.

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