We've been living in Canada almost 2 years now, and both my partner and I are self employed. I recently opened an account with CIBC for a fledgling business I started 4 months ago, and have had a steady (but small) income trickling in.

This afternoon I got an email from CIBC, saying I was pre-approved for a credit card with $10000 credit. I nearly fell off my chair, I never had that much credit on one card in the UK and that was with a full time job!

Anyway, we are currently still building our credit rating (I'm assuming mine can't be too bad with that offer lol). I have 2 other credit cards, with much lower limits. I don't need any more credit, but could having this card also help my credit rating, or could it hinder it? We're looking into building a house in the next year or two and I'm thinking that amount of credit could come in handy then (I gather construction mortgages can be tricky).

Any thoughts? I'm no expert on credit ratings and I don't know what causes them to go up or down....

check annual costs on the new one Vs the old one and interest rate too, also if you transfer a balance to the new one is there a period of interest free which could save you money ????

Having high credit limits with a low balance is a great way to boost your credit rating. So I would take the deal, use it a little bit each month and pay off the balance, and you should see big jumps in your credit score in a few months.

Also, as this came through by email, I would check it isnt a scam.

There is a fairly high annual fee, but they waive it for the first year.
If having a high credit limit and low balance improves your score then it sounds like a good idea to get it! I'm not the sort of person to go daft and buy loads of things on credit either, so I'll just use it a little and pay off the balance.

I'm usually very sensitive to scam emails and this one looks pretty legit; they also have a number to call (which I'll confirm on their website!) to accept the offer, I don't have to do it online which might be a safer way to make sure.

Thanks

Credit ratings can be adversely affected if you have too many credit cards, so you need to be aware.

Could use it for the year, put small purchases on it, pay it off regularly and then cancel it when the fees kick in. Chances are you'll be able to find another more beneficial card fairly easily then.

Is there any way to know how many is too many?

No, not really..

This is a bit like plant watering instructions that say don't water too much or too little

From what I've read having had a google just now, it seems like there isn't really a number for too many, it's more about what you do with the ones you have. If you're not sung much of your credit then it's a good thing to have several, if you're using a lot then it's bad. So I think I'll apply and use it wisely

Read the fine print, often these offers are subject to approval and qualification, so it may not be a cut and dried approval.

Our cards cost us quite a bit each year, the benefits outweigh the costs. Interest rate only matters if you carry a balance.

Be careful about e-mailed offers. Banks usually only e-mail through secure messages on your account or send card offers in the mail.

Check the message header and IP address to see where it came from.

Credit rating is not so much affected by how many cards you have, more so how many bureau checks are done over a given period, how much credit you have available to you proportional to your income, your bill payment history and any black marks on your bureau file.

So true. I stopped trying to figure out credit scores. Mine goes up or down every month anywhere from 10-20 point difference. I have 1 card with a tiny limit, no balance, and a couple of paid off things, no inquiries, so no clue how they decide each month what number to use.

If the benefits of the card are worth it, then it's worth getting the card and cancelling it right around the one-year mark. This is what we regularly do with credit cards - you can get some great into offers on free-for-first-year cards (loyalty points, travel credit, whatever). As others have said, use it and pay it off in full. It looks good on your credit report to see that you have a lot of credit available but only use what is required - generally you want to stay under 50% of available credit used to maximize your score. (I don't have a source for this, just what my husband has always said, he's my money guy!)

I will also echo what others have said about being skeptical about the email, though. If you are going to pursue it, it might be worth doing it in the actual branch. If it's a legit offer then they should have a record of it.

What if you keep changing credit cards from one bank to another. Does it still effect your credit rating? I pay my balances in full but when a better points offer comes up I take and ditch the previous credit card.

Every credit inquiry will affect your credit rating.