Credit Rating: How it works and How to improve it discussion area

Eddiec

Hello all,

My wife is looking at a new car and is considering how to pay for it. :eek:

OK, here's the deal....

She is self employed and earns roughly 10k per year. Has 3 credit cards which all have a small balance outstanding (she keeps on top of them, and pays off large amounts every month). And a ruck of catalogue accounts opened and used throughout the year.

The largest credit card limit is £10750, which will cover the purchase, (8-9000) but the question is when she applies to transfer the balance at a later date.
I'm a credit card !!!!! and transfer balances for fun to keep within the 0% deals, but my wife is concerned that she will get refused credit for a transfer, because of being self employed and only earning 10k.

A few years back, she was applying for a loan, and inadvertantly checked with half a dozen loan companies, not realising each time her check was listed, which she thinks affected her credit score. Suddenly the knock backs were coming through thick and fast, and has taken 4 or 5 years to settle back down again.

Her repayments would be roughly £250 per month so the balance would plummit each year, but she would like to transfer the balance after the first year, and maybe the second too.

Is there any way of finding out what a credit card company will offer as a credit limit without actually applying? (She doesn't want to buy a 9k car, only to find out when it's transfer time, the best new card limit she can find is only 6k!!)

The card with the10k limit is offering use of credit card cheques at 6.95% for the life of the balance, is this about the best available given the circumstances?

Her bank has offered 10.95% pre-approved on line, but does that also go against her credit rating, because she never actually applied for it? (The bank have obviously done a background search and added it to her online account....or have they?)

It all looks very confusing, but is actually quite simple.....being self employed and earning 10k, will my wife realistically be able to transfer the balance to a card, and be offered a big enough limit each time?

Thanks for any advice guys. :beer:

arnoldma

Hi,

just a quick question, my electoral roll is registered on different address than my bank accounts, when i apply for a credit card which address should i use?

or is it better if i change it so its all on the same address?

thanks!

Moggles_2

arnoldma wrote: »

My electoral roll [entry] is registered with a different address from my bank accounts. When I apply for a credit card, which address should I use?

That depends, to some extent, on where your most recent credit history 'lives' May I ask which other credit facilities, besides your current account(s), are held in your name? (Include catalogues, store cards, mobile phones etc. not just credit cards and your overdraft.) Anything with credit facilities will leave footprints on credit files.

... or is it better if I change it, so it's all on the same address?

Yes, where financial affairs are concerned, it's essential to be consistent. Other things being equal, the address that's shown on public records, such as the electoral register, is the one you should be using to correspond with your bank(s).

Kez1983

Hi all, have had a quick search but cant find the info on this, I have just checked my credit rating with 2 of the 3 companies, neither of them list my HSBC credit card. Is this normal?

It lists my store card mastercard but this only has a low limit so it is showing I am using 78% of my available credit, but I am not! I am looking to apply for a mortgage soon, but will be through HSBC (they have quoted me best deal) so will this affect things?

Help!!

Thanks!

arnoldma

Moggles wrote: »

That depends, to some extent, on where your most recent credit history 'lives' May I ask which other credit facilities, besides your current account(s), are held in your name? (Include catalogues, store cards, mobile phones etc. not just credit cards and your overdraft.) Anything with credit facilities will leave footprints on credit files.

Yes, where financial affairs are concerned, it's essential to be consistent. Other things being equal, the address that's shown on public records, such as the electoral register, is the one you should be using to correspond with your bank(s).

Thanks for the reply! i have one credit card, and a mobile phone contract, they are both on my address with the bank accounts.

As far as i know only electoral roll entry is on the different address. so i'm thinking just change my electoral roll entry to the address where my other credit facilities are on? if i change it will it effect my credit score?

thanks!

Moggles_2

arnoldma wrote: »

Thanks for the reply! i have one credit card, and a mobile phone contract, they are both on my address with the bank accounts. As far as i know only electoral roll entry is on the different address, so i'm thinking just change my electoral roll entry to the address where my other credit facilities are on? If i change, it will it effect my credit score?

How did this arise? Are you contemplating another move in the near future?

Note: there's nothing to prevent you from being on the electoral roll at two separate addresses. A large body of voters (students) register at Uni, but stay on the ER at their parents' home.

Caution: if your family home is occupied by one person who qualifies for a single person's discount, I wouldn't advise it.

Piotrf

Hi,

I've recently applied for a Halifax All in One credit card in branch and I got declined due to low credit rating.
I've been living in the UK for the past 3 years but I have no credit history as I never got any credit card and never applied for any loan or other sorts of credit (appart from having bank account for almost this time and a mobile contract).
So, what exactly do they check to assess that I'm not suitable client for getting a credit card from them? I bank with another provider but that shouldn't affect my score, or should it? Would it be easier to get a credit card from my provider (Barclays)? I'm looking for CC that can give me 0% for a promotional period so that I could stooz and emergencies, but with a low rating would it be hard to get credit from any of the 0% offers?

Thanks in advance.
P

Ladyhelena_2

Will my credit file show ALL my bank accounts even if I have never had credit from them? ( I only make payments in and take payments out).:rolleyes:

Moggles_2

Piotrf wrote: »

If this would be your first credit card, you have a limited credit history, so from the lender's perspective you're something of an unknown quantity. They are likely to see your lack of a payment history as too great a risk. You probably need to be more concerned about actually getting a starter credit card, rather than looking for the best 0% card.

The bank that holds your main current account is certainly the best place to start, but you may not be issued with the market-leading deal you've seen advertised. That said, many of us here have used credit cards for years free of charge. If you only ever spend what you can afford to pay back on time each month, you'll never pay interest and you'll be building a credit history in the process

For tips to improve your chances of credit card acceptance, have a look at the *Credit Rating: how it works and how to improve it guide*, especially Martin's *Manage and Improve your credit score* article

http://www.moneysavingexpert.com/ban...-score#improve

Moggles_2

Ladyhelena wrote: »

Will my credit file show ALL my bank accounts, even if I have never had credit from them?

Not necessarily.

Banks vary in the data they report to the credit reference agencies, but why speculate? Your best move would be to order a credit report from Experian. (For help, see page 1 of the *How to obtain credit reports* sticky.)

Once you know what lenders will see, you are in a better position to improve their opinion