What can lenders see?

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RG2015
RG2015 Posts: 5,904 Forumite
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Can a lender see from your credit report if you are only making the minimum monthly payments on several credit cards? i.e. stoozing.

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  • Carrot007
    Carrot007 Posts: 4,534 Forumite
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    Yes, there is a minimum payment marker (not sure if all credit reports). And it will go against you. Even with no marker they can work out balance to legal minimum repayment. Best to pay a little bit more if you want to be seen as a good bet.
  • RG2015
    RG2015 Posts: 5,904 Forumite
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    Carrot007 wrote: »
    Yes, there is a minimum payment marker (not sure if all credit reports). And it will go against you. Even with no marker they can work out balance to legal minimum repayment. Best to pay a little bit more if you want to be seen as a good bet.
    Thanks.

    Does this mean they see each individual credit card agreement? I thought they just saw the total credit card debt and the percentage utilisation.

    Also, not all credit cards have the same minimum payment even if with most it is 1%. In which case it would not be that easy to work out for lenders.
  • Nebulous2
    Nebulous2 Posts: 5,116 Forumite
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    My understanding is they see a minimum payment marker, and individual debts, but not the lender. They also see if it is on a promotional rate, in which case a minimum payment isn't really an issue.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    Nebulous2 wrote: »
    My understanding is they see a minimum payment marker, and individual debts, but not the lender. They also see if it is on a promotional rate, in which case a minimum payment isn't really an issue.

    This. .
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Lenders don't see anything. They have access to datasets that their own algorithms then analyse. This is compared to their own internal lending criteria.
  • RG2015
    RG2015 Posts: 5,904 Forumite
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    Thrugelmir wrote: »
    Lenders don't see anything. They have access to datasets that their own algorithms then analyse. This is compared to their own internal lending criteria.
    Thanks, but they must see something.

    All that interests me is whether they can differentiate between someone with high debts possibly verging on the unmanageable and a loaded stoozer.
  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    RG2015 wrote: »

    All that interests me is whether they can differentiate between someone with high debts possibly verging on the unmanageable and a loaded stoozer.

    The promotional markers provide one piece of the puzzle. The rest is via your application details , such as your income and customer profiling.

    It's not an exact science, but a lot of effort is poured into making the right judgements.
  • Nebulous2
    Nebulous2 Posts: 5,116 Forumite
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    RG2015 wrote: »
    Thanks, but they must see something.

    All that interests me is whether they can differentiate between someone with high debts possibly verging on the unmanageable and a loaded stoozer.

    My experience (which is a very limited sample) has been that high debts on promotional rates for stoozing with minimum payments are not an issue when you demonstrate a history of paying them. They are much twitchier if you have just taken them out. I've recently paid down a chunk, partly because a couple of regular savers have matured, and partly because it no longer entertains me as much as it did. MBNA have responded by raising my limit from £11k to £16.5k.

    Even with £30k of debt Virgin gave me a £7k limit on a second card when I already had over £10k on my first one.

    Then again I an boring and stable. I've been in the same house for over 20 years and been on the ER for all of that time.
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