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  • FIRST POST
    • rbrebner
    • By rbrebner 12th Oct 17, 10:10 AM
    • 1Posts
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    rbrebner
    Does the 'brand' of the credit card matter
    • #1
    • 12th Oct 17, 10:10 AM
    Does the 'brand' of the credit card matter 12th Oct 17 at 10:10 AM
    Hi,

    Does anyone know if having certain credit cards puts off other lenders even if you manage them well ?

    For example, would a student credit card or other low limit cards (like credit builder cards) make other bigger lenders less likely to give you a card as they may think your in the lower end of the credit market since you have these types of cards. Or is it purely the mathematics that matters and lenders don't care about the 'brand' all their interested in is your income, your credit utilization %, your payment history/reliability and current situation etc etc.

    I'm unsure if I should cancel some of the lesser cards in the hope to get better ones later, or keep them and apply for whats available now.

    Anyone able to advise ?
Page 1
    • eskbanker
    • By eskbanker 12th Oct 17, 10:18 AM
    • 5,585 Posts
    • 5,424 Thanks
    eskbanker
    • #2
    • 12th Oct 17, 10:18 AM
    • #2
    • 12th Oct 17, 10:18 AM
    is it purely the mathematics that matters and lenders don't care about the 'brand' all their interested in is your income, your credit utilization %, your payment history/reliability and current situation etc etc.
    Originally posted by rbrebner
    In a word, yes.
    • shiny76
    • By shiny76 12th Oct 17, 10:20 AM
    • 411 Posts
    • 441 Thanks
    shiny76
    • #3
    • 12th Oct 17, 10:20 AM
    • #3
    • 12th Oct 17, 10:20 AM
    Potential lenders do not see who you currently have accoutns with. Just the general information such as amount of credit, payment history etc.

    http://www.experian.co.uk/consumer/questions/askjames248.html
    • StopIt
    • By StopIt 12th Oct 17, 10:20 AM
    • 1,085 Posts
    • 958 Thanks
    StopIt
    • #4
    • 12th Oct 17, 10:20 AM
    • #4
    • 12th Oct 17, 10:20 AM
    No.


    Credit usage, especially using it often and paying it off in full every month is the key.


    When a credit search is conducted, they look at your likelihood to pay them back, which is why a history of good payment is so valued. They don't care if your credit card is from Aqua, or Amex. The only reason why there's a market for bad/no credit cards is the criteria for getting them is lower. Once you get a history, or sort out a bad one, your chances of different ones increases.


    The only thing lenders hate is Short Term Lenders. They're a red flag that the person is vulnerable to cash crises and thus a credit risk.
    • zx81
    • By zx81 12th Oct 17, 10:20 AM
    • 13,668 Posts
    • 14,123 Thanks
    zx81
    • #5
    • 12th Oct 17, 10:20 AM
    • #5
    • 12th Oct 17, 10:20 AM
    Hi,

    Does anyone know if having certain credit cards puts off other lenders even if you manage them well ?
    Originally posted by rbrebner
    As they don't see the brand, no.
    • Anthorn
    • By Anthorn 12th Oct 17, 1:09 PM
    • 3,144 Posts
    • 811 Thanks
    Anthorn
    • #6
    • 12th Oct 17, 1:09 PM
    • #6
    • 12th Oct 17, 1:09 PM
    Agree with ZX81.

    In a word, no. You see which cards you have but other lenders don't. They see the information fields only such as minimum payment, late payment, cash advance, etc. from which they build your financial profile.
    • A4445
    • By A4445 12th Oct 17, 6:04 PM
    • 602 Posts
    • 279 Thanks
    A4445
    • #7
    • 12th Oct 17, 6:04 PM
    • #7
    • 12th Oct 17, 6:04 PM


    The only thing lenders hate is Short Term Lenders. They're a red flag that the person is vulnerable to cash crises and thus a credit risk.
    Originally posted by StopIt
    What is short term lenders? im guessing pay day loans?
    • Fingerbobs
    • By Fingerbobs 12th Oct 17, 11:58 PM
    • 340 Posts
    • 77 Thanks
    Fingerbobs
    • #8
    • 12th Oct 17, 11:58 PM
    • #8
    • 12th Oct 17, 11:58 PM
    The only thing lenders hate is Short Term Lenders. They're a red flag that the person is vulnerable to cash crises and thus a credit risk.
    Originally posted by StopIt
    Cash Advances on credit cards also have a negative impact, presumably for similar reasons. This is a phenomenon I have recent personal experience of, sadly.
    • bigadaj
    • By bigadaj 13th Oct 17, 12:45 AM
    • 10,318 Posts
    • 6,614 Thanks
    bigadaj
    • #9
    • 13th Oct 17, 12:45 AM
    • #9
    • 13th Oct 17, 12:45 AM
    Cash Advances on credit cards also have a negative impact, presumably for similar reasons. This is a phenomenon I have recent personal experience of, sadly.
    Originally posted by Fingerbobs
    Sometimes but not always, it depends on the wider financial situation. Many people may use cash withdrawals for overseas transactions on the right low fee credit cards for example, and most of them won't be impacted by using the cash withdrawal facility.
    • guesswho2000
    • By guesswho2000 13th Oct 17, 3:12 PM
    • 1,550 Posts
    • 731 Thanks
    guesswho2000
    Cash Advances on credit cards also have a negative impact, presumably for similar reasons. This is a phenomenon I have recent personal experience of, sadly.
    Originally posted by Fingerbobs
    Not necessarily, as Bigadaj says, many people use these for cash advances abroad in particular (it's the best way to obtain cash abroad, in fact), and if the entire balance is being cleared each month then it's unlikely to be an issue.

    If, on the other hand, cash advances are being regularly taken, with only minimum payments being made, it could appear as though cash is being withdrawn from the card to make the minimum payment - a big red flag and sign of financial distress.
    • pcman1985
    • By pcman1985 13th Oct 17, 6:51 PM
    • 128 Posts
    • 68 Thanks
    pcman1985
    What is short term lenders? im guessing pay day loans?
    Originally posted by A4445
    Correct. Even if they are all paid back on time and in full, it is still a warning flag to many lenders.
    It shows potential lenders that the person could be poor with managing their money.
    • Hoogle
    • By Hoogle 14th Oct 17, 4:15 PM
    • 19 Posts
    • 9 Thanks
    Hoogle
    To be fair their are hundreds of credit cards even banks but they are pretty much all owned by only a handful of major banks. so a lot of information is shared internally that may not be available on credit reports. Like many of said it is money management that really counts not making yourself look like a risky borrower. SLow and steady for building credit score.
    • Fingerbobs
    • By Fingerbobs 16th Oct 17, 12:34 AM
    • 340 Posts
    • 77 Thanks
    Fingerbobs
    Not necessarily, as Bigadaj says, many people use these for cash advances abroad in particular (it's the best way to obtain cash abroad, in fact), and if the entire balance is being cleared each month then it's unlikely to be an issue.

    If, on the other hand, cash advances are being regularly taken, with only minimum payments being made, it could appear as though cash is being withdrawn from the card to make the minimum payment - a big red flag and sign of financial distress.
    Originally posted by guesswho2000
    Not my experience. One isolated £3000 cash advance on my Halifax Clarity card, which was repaid the same day and accrued no interest, has caused me trouble with subsequent applications for credit.
    • moatmeister
    • By moatmeister 16th Oct 17, 10:14 AM
    • 269 Posts
    • 47 Thanks
    moatmeister
    Surely a credit card cash advance out of the hole in the wall is better than missing a payment??
    • StopIt
    • By StopIt 16th Oct 17, 10:52 AM
    • 1,085 Posts
    • 958 Thanks
    StopIt
    Surely a credit card cash advance out of the hole in the wall is better than missing a payment??
    Originally posted by moatmeister

    No, because the providers aren't stupid. They'll know you're paying them with their own money and it'll be recorded in your credit file as such.


    Otherwise everyone would just pay the minimum with their credit card withdrawals, which would be incredibly damaging.
    • moatmeister
    • By moatmeister 16th Oct 17, 11:41 AM
    • 269 Posts
    • 47 Thanks
    moatmeister
    I didnt specifically mean credit cards payments. I meant anything, mortgages gas bill etc etc.

    I accept its not best practice but surely getting a credit card advance to cover outgoing payments if your up against the wall has got to be better than missing them or paying them late in the overall scheme of things? Is that not just common sense? Your not doing anything wrong, just incurring higher charges
    • Don80
    • By Don80 16th Oct 17, 12:19 PM
    • 185 Posts
    • 70 Thanks
    Don80
    I didnt specifically mean credit cards payments. I meant anything, mortgages gas bill etc etc.

    I accept its not best practice but surely getting a credit card advance to cover outgoing payments if your up against the wall has got to be better than missing them or paying them late in the overall scheme of things? Is that not just common sense? Your not doing anything wrong, just incurring higher charges
    Originally posted by moatmeister
    No, remember they're looking at how you you manage your money. If you need to take credit to pay credit (or bills) then they look on that negatively. It's not "wrong", it's just bad financial management, which is what they are interested in.
    • Anthorn
    • By Anthorn 16th Oct 17, 2:38 PM
    • 3,144 Posts
    • 811 Thanks
    Anthorn
    Not my experience. One isolated £3000 cash advance on my Halifax Clarity card, which was repaid the same day and accrued no interest, has caused me trouble with subsequent applications for credit.
    Originally posted by Fingerbobs
    Unlikely: What it comes down to is your financial profile which I mentioned in an earlier post in this thread. If you take a cash advance regularly then you are building a financial profile which says you take regular cash advances and that spells financial difficulty. But one or two isolated cash advances are not sufficient to build that.

    If isolated cash advances affect a credit history then not many people would be using Clarity but there are plenty of posts on MSE singing its praises.
    • moatmeister
    • By moatmeister 16th Oct 17, 2:52 PM
    • 269 Posts
    • 47 Thanks
    moatmeister
    Thats the way I would look at it. Ok its the least worst option but proactively managing the situation as a "one off" to keep your credit file up to date using the tools at your disposal given to you by the bank rather than burying your head in the sand and hoping that the direct debit looming on the horizon will miraculously get overlooked or paid by a supernatural force has just got to be the best way forward.
    • moatmeister
    • By moatmeister 16th Oct 17, 10:21 PM
    • 269 Posts
    • 47 Thanks
    moatmeister
    Good move!!
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