Credit rating advice..
Discussion
Hi all,
Some of you may recall my thread on personal debt a few months ago, I took a bit of a kicking from Soovy et al for asking silly questions about credit availability
However I have now cleared the vast majority of my debt, and am left with a rapidly shrinking loan which is great!
Fast forward a few months, I am now left with two credit cards with about 4k of available funds between them (fully paid off). I want to improve my rating, so I have registered on the electoral roll, but I was wondering whether people think its better to leave the accounts open or close them down?
The only thing I thought, was that if I need access to a large amount of funds for anything then they will be there..
What are your views on this?
Some of you may recall my thread on personal debt a few months ago, I took a bit of a kicking from Soovy et al for asking silly questions about credit availability
However I have now cleared the vast majority of my debt, and am left with a rapidly shrinking loan which is great!Fast forward a few months, I am now left with two credit cards with about 4k of available funds between them (fully paid off). I want to improve my rating, so I have registered on the electoral roll, but I was wondering whether people think its better to leave the accounts open or close them down?
The only thing I thought, was that if I need access to a large amount of funds for anything then they will be there..
What are your views on this?
IMO large amounts on a credit card with no quick way to pay them off is mad.
Electoral roll is good for your credit file, as is having a good up to date payment history. Register with Experian/Equifax for a credit report, I have mine setup rolling quarterly, just to let me know if anyone's tried to apply for credit in my name or there's been any searches I wasnt aware of
ETA - what you'll find with the credit card companies is they'll either increase your limit if it's not being used, or decrease it because you're not using it. Varies from difference card companies. Some will stick you on 0% if you're not using it to tempt you into doing something with it, others will just stick you down to a £1k limit and leave it at that
Electoral roll is good for your credit file, as is having a good up to date payment history. Register with Experian/Equifax for a credit report, I have mine setup rolling quarterly, just to let me know if anyone's tried to apply for credit in my name or there's been any searches I wasnt aware of
ETA - what you'll find with the credit card companies is they'll either increase your limit if it's not being used, or decrease it because you're not using it. Varies from difference card companies. Some will stick you on 0% if you're not using it to tempt you into doing something with it, others will just stick you down to a £1k limit and leave it at that
Edited by andy-xr on Tuesday 10th February 12:02
AIUI the accepted logic is that having a credit card (even if you don't use it) is better for credit rating, but using it and missing payments is a bad thing.
One thing to bear in mind from my experience, I used to have a card that I rarely used; one weekend I decided to spend some money on it (it was planned spend, not emergency spend - putting stuff on that card meant it could remain a surprise for my wife, instead of her asking what I had spent £x on when the statement came in). Anyway, I planned to buy three things on the card - worked fine for the first 2, refused on the third. As it hadn't been used for ages, 3 purchases in quick succession fired up the "stolen card" logic. It only took a call to resolve it, but I found the refusal embarrassing.
Maybe the best advice would be to close one account, and keep one open. That gives you a reasonable emergency fund to use if required, keeps a credit account open in your name, but stops you running up a £4k bill if self control waivers?
Andy
One thing to bear in mind from my experience, I used to have a card that I rarely used; one weekend I decided to spend some money on it (it was planned spend, not emergency spend - putting stuff on that card meant it could remain a surprise for my wife, instead of her asking what I had spent £x on when the statement came in). Anyway, I planned to buy three things on the card - worked fine for the first 2, refused on the third. As it hadn't been used for ages, 3 purchases in quick succession fired up the "stolen card" logic. It only took a call to resolve it, but I found the refusal embarrassing.
Maybe the best advice would be to close one account, and keep one open. That gives you a reasonable emergency fund to use if required, keeps a credit account open in your name, but stops you running up a £4k bill if self control waivers?
Andy
1. Keep the credit cards, spend on them (but clear them off each month more importantly). Having no debt (or credit cards) is worst (in their eyes) than credit cards showing a neg balance.
2. Pay for as much as you can by direct debits, if that you don't want to pay utilites by DD, then set up multiple direct debits to charities, RNLI, RSPSCA what ever floats your boat. couple of quid a month, shows you are a consistant payer, will also imporves your rating.
3. Get on the electoral roll, however it may take a while to show.
4. Don't make mulitple credit card applications at the same time. If you get turned down then wait a good few months.
5. Check out your credit history once a year (Callcredit / Expeiran / etc)
2. Pay for as much as you can by direct debits, if that you don't want to pay utilites by DD, then set up multiple direct debits to charities, RNLI, RSPSCA what ever floats your boat. couple of quid a month, shows you are a consistant payer, will also imporves your rating.
3. Get on the electoral roll, however it may take a while to show.
4. Don't make mulitple credit card applications at the same time. If you get turned down then wait a good few months.
5. Check out your credit history once a year (Callcredit / Expeiran / etc)
its perverse, but a credit card is one of the quicker ways to boost your rating. use it as a debit card throughout the month then clear the balance totally using your wage from the prev. mth that you have not touched. you will be spending and clearing over a grand a mth, your spending limit will increase and your rating will improve.
however if you have history of maxing out cards then this isn't for you.
however if you have history of maxing out cards then this isn't for you.
I think I fall down at the address part, I have lived in 4 places in the last 3 years and have been on the roll in one..
So hopefully with a decent stretch at my current place, and registering I can revive it. I think part of the reason I was having problems getting the 0% balance transfer deals was because I am only 21 as well. I am sure this doesn't help matters..
So hopefully with a decent stretch at my current place, and registering I can revive it. I think part of the reason I was having problems getting the 0% balance transfer deals was because I am only 21 as well. I am sure this doesn't help matters..
i don't think the address thing is a problem if your stay there was 'clean' and there are no bad debts associated with them. i lived at 13 different addresses in 5 years but one of those was owned by a landlady with more debts than UKPLC and court orders coming out of her ears.
and be honest when applying for loans etc. and always do it face to face. someone in a bank can't access your credit file [though head office can] but if you show them it they can help rather than 'computer says no'.
and be honest when applying for loans etc. and always do it face to face. someone in a bank can't access your credit file [though head office can] but if you show them it they can help rather than 'computer says no'.
ahdguy said:
2. Pay for as much as you can by direct debits, if that you don't want to pay utilites by DD, then set up multiple direct debits to charities, RNLI, RSPSCA what ever floats your boat. couple of quid a month, shows you are a consistant payer, will also imporves your rating.
If thats true that £2 a month to charity or charities improves your rating then thats the best piece of advice ive heard all year. A tenner a month spread over 5 charities could improve it a lot and your doing some good. After all whats a tenner.
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