Will credit rating suffer stoozing?

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  • Chapuys
    Chapuys Posts: 156 Forumite
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    nb0825 wrote: »
    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.

    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.
    Anything I say in no way constitutes financial advice and anything you do is your own decision.
  • redux
    redux Posts: 22,976 Forumite
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    YorkshireBoy wrote: »
    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.

    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
    Chrysalis Posts: 4,154 Forumite
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    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
    Aldo12 Posts: 7 Forumite
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    Yorkshireboy - impressive numbers, well done - do you store the cash in various accounts earning 2-3%?

    Thanks

    A
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