Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • MatthewAinsworth
    • By MatthewAinsworth 26th Apr 17, 3:52 PM
    • 2,840Posts
    • 1,136Thanks
    MatthewAinsworth
    Will credit rating suffer stoozing?
    • #1
    • 26th Apr 17, 3:52 PM
    Will credit rating suffer stoozing? 26th Apr 17 at 3:52 PM
    I'm tempted to have a regular saver and hold out on paying of 0% card till the end, but is it worth any credit rating penalty for keeping a high utilisation, and being slow to repay the balance and unprofitable? Or are banks generally cool as long as i haven't been late with the minimum payment?
    I intend to take out a new 0% purchases card as soon as i close the old one

    Thank you for advice ☺
Page 1
    • nb0825
    • By nb0825 26th Apr 17, 3:57 PM
    • 114 Posts
    • 33 Thanks
    nb0825
    • #2
    • 26th Apr 17, 3:57 PM
    • #2
    • 26th Apr 17, 3:57 PM
    don't max out your credit utilisation is the general advice. If you have £10k limit on all your accounts, don't go above 70% as a finger in the air rule (in this case £7k). Same goes for overdrafts
    • YorkshireBoy
    • By YorkshireBoy 26th Apr 17, 7:53 PM
    • 29,447 Posts
    • 17,230 Thanks
    YorkshireBoy
    • #3
    • 26th Apr 17, 7:53 PM
    • #3
    • 26th Apr 17, 7:53 PM
    don't max out your credit utilisation is the general advice.
    Originally posted by nb0825
    Did you forget this was the stoozing board? I'd have thought the objective was to maximise the earning potential of any free cash...isn't it? That's certainly been my objective over the last 12 years or so.
    don't go above 70% as a finger in the air rule
    I recently got a £12K BT card and immediately BTd £11.4K of debt to it. Are you saying I should have foregone around £3K of interest earning potential and transferred only £8.4K?
    • MallyGirl
    • By MallyGirl 27th Apr 17, 10:31 AM
    • 1,971 Posts
    • 6,681 Thanks
    MallyGirl
    • #4
    • 27th Apr 17, 10:31 AM
    • #4
    • 27th Apr 17, 10:31 AM
    It is all about your credit history - not a random number generated. As long as you clear down stooze pots before trying to take out a mortgage or something equally significant then it doesn't matter what the score has been doing along the way
    • nb0825
    • By nb0825 27th Apr 17, 2:12 PM
    • 114 Posts
    • 33 Thanks
    nb0825
    • #5
    • 27th Apr 17, 2:12 PM
    • #5
    • 27th Apr 17, 2:12 PM
    Did you forget this was the stoozing board? I'd have thought the objective was to maximise the earning potential of any free cash...isn't it? That's certainly been my objective over the last 12 years or so.I recently got a £12K BT card and immediately BTd £11.4K of debt to it. Are you saying I should have foregone around £3K of interest earning potential and transferred only £8.4K?
    Originally posted by YorkshireBoy
    just because you have available credit, doesn't mean you should stooze every last penny of it and potentially scupper your credit rating. Some people my remortgage every 2-5 years and having a history of maxed out credit doesn't help, regardless if its paid off at the end of the promotion
    • YorkshireBoy
    • By YorkshireBoy 27th Apr 17, 11:23 PM
    • 29,447 Posts
    • 17,230 Thanks
    YorkshireBoy
    • #6
    • 27th Apr 17, 11:23 PM
    • #6
    • 27th Apr 17, 11:23 PM
    Some people my remortgage every 2-5 years and having a history of maxed out credit doesn't help, regardless if its paid off at the end of the promotion
    Originally posted by nb0825
    Is that your opinion or based on factual data/insider knowledge? Because it hasn't been my experience over the last 12 years.

    If it is based on 'fact' could you provide a source please?

    But it's not "maxed out" all the time is it? It starts at 95% of the limit and ends, say, 2 years later at 56% of the limit (using 2.25% minimums)...followed by clearance just before the (re)mortgage application. That shows good credit management doesn't it? It certainly has done for me over the years.
    • MatthewAinsworth
    • By MatthewAinsworth 28th Apr 17, 6:15 AM
    • 2,840 Posts
    • 1,136 Thanks
    MatthewAinsworth
    • #7
    • 28th Apr 17, 6:15 AM
    • #7
    • 28th Apr 17, 6:15 AM
    Ending on 56% isn't maximising though, and i would clear it all before mortgage application, but I'm wondering CC applications

    At the moment i have an interest bearing rewards card that i clear each month keeping my utilisation lower, but if i got more cards it could exceed 70%
    • vacheron
    • By vacheron 28th Apr 17, 7:06 AM
    • 717 Posts
    • 624 Thanks
    vacheron
    • #8
    • 28th Apr 17, 7:06 AM
    • #8
    • 28th Apr 17, 7:06 AM
    Is that your opinion or based on factual data/insider knowledge? Because it hasn't been my experience over the last 12 years.

    If it is based on 'fact' could you provide a source please?

    But it's not "maxed out" all the time is it? It starts at 95% of the limit and ends, say, 2 years later at 56% of the limit (using 2.25% minimums)...followed by clearance just before the (re)mortgage application. That shows good credit management doesn't it? It certainly has done for me over the years.
    Originally posted by YorkshireBoy
    That has been my experience as well.

    Whenever my main 0% purchase card begins to reach its limit I apply for a 0% fee / 0% balance transfer card and fill that with as much of the purchase card balance as it will accept.

    The result of my increasing number of maxed out cards appears to be an increase in the credit limits I am getting on new ones!

    This may just be for some, and it certainly appears to defy logic, but I can only speak from my personal experience.
    • The rich buy assets.
    • The poor only have expenses.
    • The middle class buy liabilities they think are assets.
    Robert T. Kiyosaki
    • nb0825
    • By nb0825 28th Apr 17, 9:20 AM
    • 114 Posts
    • 33 Thanks
    nb0825
    • #9
    • 28th Apr 17, 9:20 AM
    • #9
    • 28th Apr 17, 9:20 AM
    Is that your opinion or based on factual data/insider knowledge? Because it hasn't been my experience over the last 12 years.

    If it is based on 'fact' could you provide a source please?

    But it's not "maxed out" all the time is it? It starts at 95% of the limit and ends, say, 2 years later at 56% of the limit (using 2.25% minimums)...followed by clearance just before the (re)mortgage application. That shows good credit management doesn't it? It certainly has done for me over the years.
    Originally posted by YorkshireBoy
    Here you go link

    See section "How much of your credit limit you’re using"
    • YorkshireBoy
    • By YorkshireBoy 28th Apr 17, 10:04 AM
    • 29,447 Posts
    • 17,230 Thanks
    YorkshireBoy
    Here you go link

    See section "How much of your credit limit you’re using"
    Originally posted by nb0825
    The OP is considering stoozing. They asked will this impact their credit rating.

    Observations from that section of the link:

    I've counted just one use of the word "will", and that's saying your credit score will be affected. As we all know, CRA credit scores are next to useless being as they don't lend money. So the fact (because they used the word "will") that this number will change doesn't bother me...or surprise me.

    I've counted many uses of the words 'may', might, could, shouldn't, etc, which aren't the same as "will".

    Like vacheron above, my limits have increased over the years because I've proven I can manage very high levels of both available and used credit. So much so I've currently £113K of available credit and am stoozing nearly £50K of it. I don't really do 0% on purchase cards, so all mine is the result of 95% BTs (as in the example I gave above). BTW, my salary is nowhere near £113K...and nor do I earn £50K. The last card I got...that took me to £113K?...that was a £12K limit Halifax card (and I already had a BoS card and 2 Lloyds cards).

    In my case (and in vacheron's above) it wouldn't be true to say maxing credit facilities "doesn't help"
    • nb0825
    • By nb0825 28th Apr 17, 11:02 AM
    • 114 Posts
    • 33 Thanks
    nb0825
    The OP is considering stoozing. They asked will this impact their credit rating.

    Observations from that section of the link:

    I've counted just one use of the word "will", and that's saying your credit score will be affected. As we all know, CRA credit scores are next to useless being as they don't lend money. So the fact (because they used the word "will") that this number will change doesn't bother me...or surprise me.

    I've counted many uses of the words 'may', might, could, shouldn't, etc, which aren't the same as "will".

    Like vacheron above, my limits have increased over the years because I've proven I can manage very high levels of both available and used credit. So much so I've currently £113K of available credit and am stoozing nearly £50K of it. I don't really do 0% on purchase cards, so all mine is the result of 95% BTs (as in the example I gave above). BTW, my salary is nowhere near £113K...and nor do I earn £50K. The last card I got...that took me to £113K?...that was a £12K limit Halifax card (and I already had a BoS card and 2 Lloyds cards).

    In my case (and in vacheron's above) it wouldn't be true to say maxing credit facilities "doesn't help"
    Originally posted by YorkshireBoy
    Like you said, the OP's original query was their credit rating. All I'm arguing is, if you're concerned about your credit rating, don't max your available credit, that is all. From your view, yes you're foregoing a little bit of extra stoozing by not doing so, but if a potential mortgage application is on the horizon stick to the 75% limit Clearscore recommends.
    • Chapuys
    • By Chapuys 29th Apr 17, 7:16 AM
    • 131 Posts
    • 105 Thanks
    Chapuys
    Like you said, the OP's original query was their credit rating. All I'm arguing is, if you're concerned about your credit rating, don't max your available credit, that is all. From your view, yes you're foregoing a little bit of extra stoozing by not doing so, but if a potential mortgage application is on the horizon stick to the 75% limit Clearscore recommends.
    Originally posted by nb0825
    Yes, on the MSE Credit Club, it states this is having a positive effect on my ability to gain more credit.
    You're using quite a low proportion of the credit available to you. This is usually good, as lenders are likely to be reasonably confident you'd be able to pay them back if they lent to you.
    I am only using £500 out of a maximum of £10,000 of credit.
    • redux
    • By redux 9th May 17, 11:24 AM
    • 17,253 Posts
    • 21,871 Thanks
    redux
    But it's not "maxed out" all the time is it? It starts at 95% of the limit and ends, say, 2 years later at 56% of the limit (using 2.25% minimums)...followed by clearance just before the (re)mortgage application.
    Originally posted by YorkshireBoy
    But surely it's possible to stay at a higher balance longer?

    Simple example

    Tesco credit card, £2500 balance, £25 minimum monthly payment

    Not long before the statement date, spend about £25, and just after the statement date pay back about £25.20. Increase repayment if spending a bit higher.

    This maximises the time benefit of the 0%, especially if there is also a balance transfer fee.

    Or would that be a bad idea for demonstrating ability to repay, from the point of view of either potential for new offers later, or for people with a mortgage?
    • Chrysalis
    • By Chrysalis 15th May 17, 10:42 AM
    • 1,983 Posts
    • 916 Thanks
    Chrysalis
    in my experience the score offered by the likes of experian goes down if I take out new credit, but its only temporary, it will always rise as long as you are honouring existing credit and not over utilised.

    My score went below 800 last September, but was 939 last night.
    • Aldo12
    • By Aldo12 15th May 17, 7:43 PM
    • 7 Posts
    • 1 Thanks
    Aldo12
    Yorkshireboy - impressive numbers, well done - do you store the cash in various accounts earning 2-3%?

    Thanks

    A
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

133Posts Today

2,323Users online

Martin's Twitter
  • RT @LordsEconCom: On Tuesday Martin Lewis, Hannah Morrish & Shakira Martin gave evidence to the Cttee. Read the full transcript here: https?

  • Ta ta for now. Half term's starting, so I'm exchanging my MoneySavingExpert hat for one that says Daddy in big letters. See you in a week.

  • RT @thismorning: Can @MartinSLewis' deals save YOU cash? ???? https://t.co/igbHCwzeiN

  • Follow Martin