Credit ratings

AceCobra1

I was just wondering. I just applied for a Virgin CC on Sunday to do balance transfers and phoned them up today to ask if i was accepted. The lady put me on hold checked a few things and gave me a limit of £5k. My income will be salaried (i.e. fixed) @ £32k this year. From that, can you tell if I have an average or good CR ? Because I assume this limit of £5k can't be given to anyone with poor CR which I don't think I will have. But I think my CR might be average as I was 2 days late on paying my Natwest CC a few months back.

Also, I currently hold 5 different CC with different limits totaling about £2.5k. Once I have my balance transfer sorted, I am planning to close down 3 of these accounts - only going to keep the Egg Money account (for obvious reasons) and my Natwest CC since I am with them anyway. Will closing these accounts improve my credit rating, reduce it or will it remain unchanged?

And if I decide to open an account which I closed before, will that be possible ?

YorkshireBoy

AceCobra1 wrote: »

My income will be salaried (i.e. fixed) @ £32k this year.

You've done well to get a £5K limit based on what your salary *will* be when you start work (seem to remember you haven't started yet from one of your other posts? Even if you have, you haven't been employed long have you?).

From that, can you tell if I have an average or good CR ?

They clearly think you have a good rating...especially since you have a few other cards and a loan?

Because I assume this limit of £5k can't be given to anyone with poor CR which I don't think I will have.

Have you viewed your credit files recently? That should give you an idea...but don't pay for a credit 'score'.

But I think my CR might be average as I was 2 days late on paying my Natwest CC a few months back.

Some of the major banks don't report all accounts...maybe you're lucky?

Also, I currently hold 5 different CC with different limits totaling about £2.5k. Once I have my balance transfer sorted, I am planning to close down 3 of these accounts - only going to keep the Egg Money account (for obvious reasons) and my Natwest CC since I am with them anyway. Will closing these accounts improve my credit rating, reduce it or will it remain unchanged?

Lenders look at the number of 'active' accounts, as well as total debt and total available credit. In that respect, and even though the limits are small, your credit rating should improve.

And if I decide to open an account which I closed before, will that be possible ?

In the main, yes, although you will have to wait the required time period...ranges from almost instantly with Capital One to 30 days with Halifax, and on to 8 months for some of the RBSG cards. Nationwide is one possible exception, as although you can return to them they won't give you a second bite of the 0% cherry.

AceCobra1

Thanks for the reply YB. Awnsered all my questions nicely :money::money:

Yeah, just started work 1st month - actually thats what the girl was asking, she said you put 1 month in your employment. I said yes thats coz i just graduated!

I actually asked about that CR because I read a few posts that Virgin gives out very high limits anyway so I wasn't sure if that might be your average card...

I thought to check my credit file, I need to pay? Or is it one of them free trials from Experia? Because I have done that already ages ago.

Yeah, I did have a professional loan from natwest of £19k... thats why I'm supprised I got so much limit. I think I can afford to repay about £500/ month this year so the balance transfer saved me loads of cash. Next year, I should be averaging about £50k so should hopefully be able to pay back the natwest loan quickly.
With such a high credit limit I might even try to shift some 0% to my loan after i finished paying the CCs which shouldn't take too long :T:T Might even save me a few pennies