Gold AMEX card for rewards (Impact credit rating?)

DanSpooner · 14 March 2018 at 11:00PM

Hi All,

I've currently got a Natwest Clear Rate credit card which has low APR. My bank recently commented that it may be the wrong card for me as I pay off my card in full by direct debit (I got it initially to improve my credit rating).

I've been looking at the 'The Preferred Rewards Gold Card' that American Express offer, as I'm looking to book a group holiday and the rewards would be great (especially if I can get it before I book to gain the bonus points). I would like to also keep my natwest card for emergencies.

The Gold card would be purely for rewards and would be paid off in full every month. If I ever did need to go into a card it would be the natwest one.

Would this impact my credit rating? Me and the girlfriend have been saving for a house together and we're hoping to get one this time next year (if all saving goes well!) so my credit rating is important at the moment. I've seen reports that because its a 'charge card' it won't but I have seen conflicting views on this.

Can anyone help please?

PeacefulWaters · 14 March 2018 at 11:30PM

A single search now will make no difference to your credit record next year.

DanSpooner · 14 March 2018 at 11:46PM

PeacefulWaters wrote: »

A single search now will make no difference to your credit record next year.

Ah sorry, what I meant was will it effect the credit rating going forward in general? As in more credit under my name so negatively effecting me due to the amount I could go into credit? Iv heard before that having multiple cards can be bad as you could go into huge debt by maxing out all of them, but I wasnt sure if a charge card showed as 'credit' or even showed on your credit rating going foward.

I'm a bit of a novice when it comes to credit ratings and cards in general, i just use experian to follow my credit rating which is how I know its improving but unsure on whether this would negatively effect.

[Deleted User] · 15 March 2018 at 12:13AM

You don't have a credit rating to be affected.

Just credit history.

Don't pay anything to experian

Emily_Joy · 15 March 2018 at 12:33PM

DanSpooner wrote: »

My bank recently commented that it may be the wrong card for me as I pay off my card in full by direct debit (I got it initially to improve my credit rating).

Whoever said that is incompetent.

AMEX Gold is a charge card, you must pay it off every month in full. Please also take into account £140 fee.

Ben8282 · 16 March 2018 at 6:39AM

DanSpooner wrote: »

Hi All,

I've currently got a Natwest Clear Rate credit card which has low APR. My bank recently commented that it may be the wrong card for me as I pay off my card in full by direct debit (I got it initially to improve my credit rating).

The only reason they would have said this to you would be to encourage you to a different Natwest product.
I don't see anything wrong as such with the card that you have except that you are paying a £24 annual fee and not getting any benefit for that fee. If you want rewards why not try to swap this card for a Natwest rewards credit card?
Obtaining an Amex charge card is unlikely to adversely effect your credit files unless of course you fail to make full payment each month and will probably be beneficial to your overall credit rating in the long term.
Being a charge card you can't build up a balance. If you are worried about your mortgage then just don't use it for a couple of months before your mortgage application to ensure the latest reported balance is 0.

toph · 27 March 2018 at 9:43PM

I had a drop in credit rating when i had a cull of cards.

i had something like ~£70k of availble credit on about 8 cards. My Virgin card had £25k alone.
i binned all but an amex and a nationwide select card with total credit dropped to ~£20k and my rating on Equifax dropped 100 odd points despite me paying my cards off each month and my only debt is my mortgage.

Many people will tell you the ratings are nonsense and they are correct to a degree, but obviously they are a judgment on your ability to consume and repay debt. My Experian rating is 999/999, Equifax = 548/700, call credit = 657/710

I took out a gold rewards card late last year, since upped to pt pm me if you want a Gold rewards referral which earns you an extra 2000 points so 22k points instead of 20k.

Amex Referal Page

[Deleted User] · 28 March 2018 at 12:21AM

The score and rating is a judgement on nothing

toph · 28 March 2018 at 11:07AM

If that!!!8217;s so Gary then why do people with low scores get rejected for credit or get deals with high interest?

Typically the credit companies prefer those with a low risk which is something the scores can portray. The devil is in the detail though and the score does not show detail, so you could have low risk but no history which could lower the overall score. Some/most providers will concentrate on key elements of the report as they decide on you, which may not be reflected in the score. As you have no idea what that will be, the best you can do is aim for the highest score possible.

[Deleted User] · 28 March 2018 at 11:11AM

toph wrote: »

If that!!!8217;s so Gary then why do people with low scores get rejected for credit or get deals with high interest?

Typically the credit companies prefer those with a low risk which is something the scores can portray. The devil is in the detail though and the score does not show detail, so you could have low risk but no history which could lower the overall score. Some/most providers will concentrate on key elements of the report as they decide on you, which may not be reflected in the score. As you have no idea what that will be, the best you can do is aim for the highest score possible.

Lenders and Creditors do not see your scores or ratings - they look at your credit history and generate their own view on you.

People who declare themselves bankrupt will have a "score" of 999 - explain that?

toph · 28 March 2018 at 3:02PM

I can!!!8217;t but have never been bankrupt and don!!!8217;t know anyone who has.

I!!!8217;d be interested to see their profile and compare to mine though and see what attributes make a difference to the ratings agencies.

There should be transparency from the ratings agencies so we know in exact detail what they hold on us and how they calculate the scores. Regardless of their usefulness, I feel uneasy having some entity generate a number based on my financial history and I can!!!8217;t see what they have done to arrive at their figure, especially when I can!!!8217;t correct them as they won!!!8217;t tell me what they have.

The credit report does not show all the info they have on you or what they use to arrive at their number. As an example, Equifax claimed my most recent previous address was an address from 5 moves ago that I never told them about. That address is not listed on any other agencies info and only appeared as the previous address on Equifax.

Gold AMEX card for rewards (Impact credit rating?)

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