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

RG2015

Candyapple wrote: »

Next time go into a branch and ask them what pre-approved credit cards they can offer you instead of wasting a hard search. They'll be able to tell you what your limit will be, APR and any 0% deals/length.

Thanks.

I applied for a 0% fee BT card for which I had a 95% approval rating and was offered a 3% fee BT card. I did save the screen which had the following information.

Based on your details and results of our credit check we can offer you the Halifax Balance Transfer card. Remember, the checks we have made to this point have not impacted your credit rating.

They also showed the card I had applied for and the one I was offered and both were called the Halifax Balance Transfer Credit Card.

I have subsequently checked my credit files and there are only soft searches on MSE Experian and Noddle. There were no searches on Clearscore.

PS: I have just checked on MSE and I am still showing as 95% approved for the Halifax zero fee BT card.

brizzie_2

I'm pretty annoyed with Experian and their free account. They showed me some rather attractive credit card deals. I am not in the market for a credit card (ever again in my life) but was curious and clicked to see these wondrous offers. I was underwhelmed as I had expected. No harm done. Until the next update of my credit rating when it had tumbled by 37 points - that click had been the only possible change. Noddle has gone the other way, score improved, so I assume no hard searches were done. I can't help thinking Experian are engaging in some nefarious marketing exercise designed to scare / trigger me into a paid account just to find out what happened. Undermines the credibility of the Experian score somewhat.

[Deleted User]

brizzie wrote: »

Undermines the credibility of the Experian score somewhat.

I don't think it could be any further undermined without causing a major land slippage.

princesspennies

Hi All, I am trying to improve my credit rating in the hope of getting a mortgage (eventually) I have 3 x credit cards, all very poor interest rates. I don't think my credit is in a posiiton to be accepted on any 0% at the moment but it's what im working towards. I have one at 2K, and 2 @ £200, I'm going to shortly be in the position to make some large dints in the balances and planned to pay £1k off the higher amount, and clear one of the smaller cards off.

I have had it suggested to a) Pay £100 off eachof the smaller cards, and 1K off the highest as this will show I am using under 50% on all three cards and then snowball going forward.
b) pay one of the smaller cards in full off, 1K to the higher card and snowball the 2 remaining cards.
c) same as B but then to close the smaller card.

I hadnt planned to do c) as I thought having the 3 cards but not using all the available balances would improve my score, but i have also been advised just to close one of the smaller cards completely.

If i could have a few people's opinions please I would really appreciate it, as I want to make sure I am doing all I can to improve things going forward. Thanks x

[Deleted User]

Throw as much as you can at the highest rate debt, pay minimum plus £1 on the others, keep all accounts open and ignore the score.

Willing2Learn

princesspennies wrote: »

Hi All, I am trying to improve my credit rating in the hope of getting a mortgage (eventually) I have 3 x credit cards, all very poor interest rates. I don't think my credit is in a posiiton to be accepted on any 0% at the moment but it's what im working towards. I have one at 2K, and 2 @ £200, I'm going to shortly be in the position to make some large dints in the balances and planned to pay £1k off the higher amount, and clear one of the smaller cards off.

I have had it suggested to a) Pay £100 off eachof the smaller cards, and 1K off the highest as this will show I am using under 50% on all three cards and then snowball going forward.
b) pay one of the smaller cards in full off, 1K to the higher card and snowball the 2 remaining cards.
c) same as B but then to close the smaller card.

The most MSE way to snowball, as it saves the most money, is to always focus on the debt with highest APR first, while continuing minimum payments on the other two cards. Once the highest APR card is paid off, then you move the snowball along to the card with the next highest APR.

princesspennies

Willing2Learn wrote: »

The most MSE way to snowball, as it saves the most money, is to always focus on the debt with highest APR first, while continuing minimum payments on the other two cards. Once the highest APR card is paid off, then you move the snowball along to the card with the next highest APR.

Thankyou, that's what I plan to do re the snowballing. Would you recommend to close the smaller cards as they are cleared or keep them open though?

Willing2Learn

As far as looking toward the future and a mortgage, you ideally want to keep all three accounts open. As far as a prospective mortgage provider is concerned, the more evidence of you successfully managing credit accounts that you have on your credit file, the more likely they are to lend to you...

Mobeer

On the other hand if you have previously got into debt on credit cards then closing the accounts could remove an easy temptation to overspend again.

DCFC79

princesspennies wrote: »

Thankyou, that's what I plan to do re the snowballing. Would you recommend to close the smaller cards as they are cleared or keep them open though?

Keep the cards open that are the oldest/open for longest.