Building a Good Credit Rating

NickX

Christopher, I have replied to your pm

Let me know if you are still have problems with the 56 days.

The key thing is to get the full 56 days, you need to make your purchases the day after your statement date. If you make your purchases after this, then you will not get 56 days interest free, and if you make your purchases the day before the next statement you are only going to get around 26 days interest free.

Hope this makes sense.

Gazza1964

Thanks to both of you for having the time and patience to answer these questions so thoroughly. I have found it very helpful.

Christopherj_2

Would it affect my credit rating if I didn't pay off my whole balance on a 0% interest card until the end of the interest free period?

NickX

Christopherj wrote: »

Would it affect my credit rating if I didn't pay off my whole balance on a 0% interest card until the end of the interest free period?

No it shouldn't be a problem as long as you make at least the minimum payment each month before the due date.

I would advise making sure that you so clear the entire balance before the 0% promotion expires otherwise you will end up paying interest at the variable rate which can increase to some quite extortionate levels.

Christopherj_2

Each time an interest free period runs out on a credit card, is it easy to apply for a new 0% interest card, or would these companies see you as a credit card tart and decline your application?

Also, I made a balance transfer (was done by mistake), would I need to pay off the full balance on this balance transfer, or would I incur fees every month? I was charged a 3% fee (£9.00).

NickX

Christopherj wrote: »

Each time an interest free period runs out on a credit card, is it easy to apply for a new 0% interest card, or would these companies see you as a credit card tart and decline your application?

They are not really concerned that you are a card tart or a stoozer because for every customer who repays the debt in full before the 0% promotion expires, there are several others who don't pay in full and end up paying the extortionate variable rate.

However, to do this successfully you need to keep a good rating. The card companies assess each application on the basis of your past credit history. Really the key things to remember :

(a) Always pay at least the minimum amount before the Due Date

(b) You will need to be able demonstrate an ability to repay the debt and to this the higher income figure you can quote on the application the better.

It takes time, but provided you manage your card accounts efficiently your credit rating will increase and you will also see your credit limits increasing.

NickX

Christopherj wrote: »

Also, I made a balance transfer (was done by mistake), would I need to pay off the full balance on this balance transfer, or would I incur fees every month? I was charged a 3% fee (£9.00).

The 3% fee is a one off so you won't incur fees every month.

I read on another thread that you basically paid a card off twice. You need to speak to the card issuer concerned and explain the mistake, they should just refund any positive balance to your Bank Account.

If you have moved the debt to a new 0% card, then I would just start repaying that as normal and there should be no other fees incurred as long as you make at least the minimum payments before the due date.

Christopherj_2

NickX wrote: »

you will also see your credit limits increasing.

Will they automatically increase my credit limit?

I should receive my Natwest credit card tomorrow but I have no idea what my credit limit is.

Moggles_2

Christopherj wrote: »

Will they automatically increase my credit limit?

Lenders vary in this respect, as with everything else. Some (eg. Barclaycard, MBNA) increase credit limits automatically, provided that the customer keeps within the Ts & Cs. Others do so only on request.

Christopherj_2

Someone told me, if I change credit cards every 6 months, it would ruin my credit rating. Is this true?