Does having a American Express help my credit raiting?

[Nickbrapp]

No not a black charge card, just a standard everyday cash back one.

I'm in the process of closing a few unused credit card accounts to reduce my overall credit availability level, hopefully to appeal to mortgage lenders.

Will having a American Expess account on there be favourable over say a standard Halifax one? I think the answer will most likely be no but who knows with banks!

I just use the card for day to day stuff and work expenses and pay it off every month, but the cashback is a pitiful 0.5% so I'm not sure it's worth having now.

[Pheo]

Are you carrying balances on these cards? If not I’m not 100% sure closing them will help - I thought a lot of mortgage lenders would look at usage of available credit and the higher it is the less favourable.

I wouldn’t choose a credit card for the credit rating, unless you were trying to rebuild the rating so needed a specialist one. Choose using the service and / or features. Cashback Card you have is the best in market. I net £300 a year from mine... but maybe that’s because I spend too much!

[Nickbrapp]

Pheo said:

Are you carrying balances on these cards? If not I’m not 100% sure closing them will help - I thought a lot of mortgage lenders would look at usage of available credit and the higher it is the less favourable.

I wouldn’t choose a credit card for the credit rating, unless you were trying to rebuild the rating so needed a specialist one. Choose using the service and / or features. Cashback Card you have is the best in market. I net £300 a year from mine... but maybe that’s because I spend too much!

I have 7 credit card accounts, 3 have a balance on which I am paying off pretty rapidly.

I know they do look at the amount of credit you use VS the amount you have avaliable to you but then if you have too much then they don't like it, and if you have too much used vs avaliable that looks bad. Not sure you can win!

Mainly my credit raiting has taken a massive hit, I moved house 5 months ago and my credit raiting went from very good to poor on ClearScore, Experian and noddle, I think that may be due to also having a credit check for a new energy account. It's slowly going back up as it also went down 130 points in 1 month because of a balance transfer I did on a credit card.

[Pheo]

7! Yes that’s quite a few. Don’t forget to leave the best value one to spend on.

My credit rating takes a hit when I move. Have you made it onto the electoral register where you are now? That will have an impact.

[eliot]

why does anyone need more than 1 credit card?

[8.4L 154]

eliot said:

why does anyone need more than 1 credit card?

Because they have an amex

[Nickbrapp]

eliot said:

why does anyone need more than 1 credit card?

Well, I have a Amex which I use for my day to day spending to redeem cash back
I have a NatWest rewards cashback to collect cash back on anything I can't use Amex for

I have a barclaycard that has a balance transfer on it from some large purchases for house stuff as it was more convinent to use 0% and collect interest on my savings than pay it off upfront.

The others are older cards that have lost their interest free periods and carry no balance

Yes I am on the electoral role again now

[Halmyre]

8.4L 154 said:

eliot said:

why does anyone need more than 1 credit card?

Because they have an amex

I have one as a company credit card, although I rarely use it. On a few occasions when I have presented it I'm told "sorry sir, we don't take Amex". I don't know why we don't use Visa or Master Card.

[oyster]

Halmyre said:

8.4L 154 said:

eliot said:

why does anyone need more than 1 credit card?

Because they have an amex

I have one as a company credit card, although I rarely use it. On a few occasions when I have presented it I'm told "sorry sir, we don't take Amex". I don't know why we don't use Visa or Master Card.

Yet I very rarely get this.

I'm guessing each year on work spend, £99k goes on an Amex and about £1k on Mastercard.

[Integroo]

oyster said:

Halmyre said:

8.4L 154 said:

eliot said:

why does anyone need more than 1 credit card?

Because they have an amex

I have one as a company credit card, although I rarely use it. On a few occasions when I have presented it I'm told "sorry sir, we don't take Amex". I don't know why we don't use Visa or Master Card.

Yet I very rarely get this.

I'm guessing each year on work spend, £99k goes on an Amex and about £1k on Mastercard.

I get this quite often on my AmEx, though it's becoming less common for it to be rejected. Smaller places, fast food places, those are the sort of places that don't take it. The places I spend the most money - fuel and groceries - all take, and I get cashback on every purchase.

Interestingly, Evans Halshaw told me I could pay on credit card. I would be charged a 0.3% fee but I would get 1% cashback - so on a five grand car, I'd get 35 quid. Not great, but free money.

[Gareth79]

If closing a few cards, always keep the OLDEST cards active. A friend is a credit analyst for a very large bank and he said that after the electoral roll it's one of their main hints as to creditworthiness. Obviously a mortgage is a different risk (and you are tidying a different area), but if you are borderline "every little helps".