{"id":3980,"date":"2019-07-23T13:15:43","date_gmt":"2019-07-23T13:15:43","guid":{"rendered":"https:\/\/www.credit-score.com\/blog\/?p=3980"},"modified":"2022-08-23T09:04:33","modified_gmt":"2022-08-23T09:04:33","slug":"credit-cards-strike-balance","status":"publish","type":"post","link":"https:\/\/www.check.co.uk\/blog\/credit-cards\/credit-cards-strike-balance\/","title":{"rendered":"Credit cards: How do I strike a balance?"},"content":{"rendered":"\n<p>Credit cards and how you use them are significant factors in determining your eligibility for a loan. Simply owning a credit card will affect your credit file, as well as making purchases using it, and paying off the balance. They can be very telling about you as a borrower \u2013 do you pay your monthly installments on time? Are you responsible with money? Can we trust you not to default on payments?<\/p>\n\n\n\n<p>Forming good credit card habits is a great way to make sure you are as <a href=\"https:\/\/www.check.co.uk\/blog\/creditworthiness-lender-score\/\">creditworthy<\/a> as you can be. It\u2019s easier than it seems too; the notion of having a credit card can be intimidating as the threat of debt is a real concern for most. However, managing your credit card balance can be a breeze.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_79_2 counter-flat ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">What&#039;s Included?<\/p>\n<span class=\"ez-toc-title-toggle\"><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.check.co.uk\/blog\/credit-cards\/credit-cards-strike-balance\/#Getting_a_shiny_new_first_credit_card\" >Getting a shiny, new first credit card<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.check.co.uk\/blog\/credit-cards\/credit-cards-strike-balance\/#The_delicate_art_of_balance_juggling\" >The delicate art of balance juggling<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.check.co.uk\/blog\/credit-cards\/credit-cards-strike-balance\/#The_potential_pain_points\" >The potential pain points<\/a><\/li><li class='ez-toc-page-1'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.check.co.uk\/blog\/credit-cards\/credit-cards-strike-balance\/#Credit-Score_offers_two_fabulous_solutions\" >Credit-Score offers two fabulous solutions<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Getting_a_shiny_new_first_credit_card\"><\/span>Getting a shiny, new first credit card<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>First off, chances are if you don\u2019t have a credit card, you don\u2019t have a <a href=\"https:\/\/www.investopedia.com\/terms\/c\/credit-history.asp\" target=\"_blank\" rel=\"noreferrer noopener\">credit history<\/a>. Without a credit history, it is difficult for lenders to assess you. This means that lenders may reject you. Taking out a credit card is the quickest and most painless way of solving this problem. They are pretty easy to get approved for and are one of the most controllable ways to manage your credit. Applying for one as soon as possible will work in your favour.<\/p>\n\n\n\n<p>It is always better to have a longer credit history. This will give lenders a lot to evaluate when considering whether or not to approve you for loans and mortgages. Therefore, if you don\u2019t already have a credit card, you should probably consider getting one! Shop carefully: always try to find the credit card with the lowest interest rate (APR) to ensure you pay back less every month, and don\u2019t end up paying way more than your original balance.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_delicate_art_of_balance_juggling\"><\/span>The delicate art of balance juggling<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If you already have a credit card or two, the trick is to ensure the balance on the card is as low as possible \u2013 even better if it\u2019s zero! Credit cards are often seen as \u201cfree money\u201d to the irresponsible, which is how late and missed payments happen. Lenders like to see a borrower who does not miss payments and whose credit card balances are not nearing the limit. This shows you as being responsible and trustworthy. It can improve your chances of being approved for larger loans and mortgages significantly. Having a total credit limit usage (across all your credit cards) of under 30% is a good aim, but under 10% is favourable to lenders.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_potential_pain_points\"><\/span>The potential pain points<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This must be making credit cards sound fantastic, but some undesirable effects can happen when applying. When lenders offered you a new credit card, it can be difficult to say no. This is especially true when chances are, you\u2019ll be approved for it. Remember: every time you apply for a credit card, this shows as a hard search on your credit file. Any lender that looks at your file after this application can see it. What&#8217;s more, it will stay there for 12 months.<\/p>\n\n\n\n<p>A few are no issue. However, if there are too many hard searches present on your credit file, this could indicate to a lender that you are desperate for money. Worse, it could tell lenders that you cannot manage the credit you already have. Not the impression you want to give! It is hard to determine exactly how many credit cards are \u201ctoo many\u201d for a lender. However, it may be best to try and raise the limits of the credit cards you already have as opposed to applying for various new ones.<\/p>\n\n\n\n<p>Like most things in life, good things come in small doses. Getting a credit card that you\u2019re able to easily manage the balance on, with a high credit limit, can do wonders for boosting your creditworthiness. Always remember: Your whole history is available for the lenders to view. As long as you are responsible with your credit, having a few credit cards under your belt can only put you in a better position for your future financial endeavours.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Credit-Score_offers_two_fabulous_solutions\"><\/span>Credit-Score offers two fabulous solutions<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>If you\u2019re preparing to take a mortgage, never apply until you\u2019ve tried our unique and&nbsp;<a href=\"https:\/\/home.credit-score.com\/\" target=\"_blank\" rel=\"noreferrer noopener\">FREE Credit-Score Home app.<\/a>&nbsp;Our smart technology will tell you what you need to fix so you avoid rejection. The app predicts when you will be able to buy, for how much and tracks your month-by-month progress to mortgage success. We\u2019ve even added your own mortgage broker, so you get the best deals available.<\/p>\n\n\n\n<p>More focused on your credit rating? Well, get started for free with&nbsp;<a href=\"https:\/\/www.check.co.uk\/register\" target=\"_blank\" rel=\"noreferrer noopener\">Credit-Score\u2019s 24- Factor Credit Check<\/a>&nbsp;to truly help you improve your creditworthiness and how lenders view you. (Remember: lenders don\u2019t use your credit score! We\u2019ll show you what lenders look for and how to get your credit report in the best shape possible).<\/p>\n\n\n\n<p><strong><em>Last updated by Robert Edwards, April 2022<\/em><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Credit cards and how you use them are significant factors in determining your eligibility for a loan. Simply&hellip;\n","protected":false},"author":22,"featured_media":4075,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[255,254],"tags":[369,190,397],"class_list":{"0":"post-3980","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-credit-card-basics","8":"category-credit-cards","9":"tag-credit-cards","10":"tag-csc","11":"tag-creditworthiness"},"acf":[],"featured_image_src":"https:\/\/www.check.co.uk\/blog\/wp-content\/uploads\/2019\/07\/photo-1560472355-536de3962603.jpg","author_info":{"display_name":"admin","author_link":"https:\/\/www.check.co.uk\/blog\/author\/admin\/"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Credit cards: How do I strike a balance? | Credit-Score UK<\/title>\n<meta name=\"description\" content=\"Forming good habits on your credit cards is a great way to make sure you are as creditworthy as you can be. 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