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

liam1

Hi everyone,

I'm new to this site, I've found lots of information and helpful advice, thanks.

I have a question on credit card cash advances I was hoping somebody might be able to answer.

Does anybody know what affect withdrawing cash from credit cards has on a person's credit worthiness in general? The past year I have had cash advances nearly every month on at least 2 out of 3 credit cards (pretty stupid, I know) which has shown on my credit report each month. I'm sure I read somewhere that lenders see this as a sign of 'desperation for cash' therefore they will be reluctant to lend.

On the other hand, I have never missed a payment (ever) and have a long string of '0's on all 3 of my cards.

So will I be seen as 'desperate for cash' and a risk to lenders or will I be seen as a lender's 'ideal' customer because I withdraw cash, making them money in charges and interest and yet never miss a payment?

The reason I ask is because the 3 cards I have are all sub-prime (I previously had no credit history) and I want to move into the mainstream but am not sure whether to start applying for mainstream cards now or wait until the cash advances disappear from my report in 12(?) months time.

Any advice would be appreciated!


Liam

liam1

Also, a different question.

Does anybody know if credit searches for one type of particular product influence your chances of being accepted for another?

To take an extreme example:

If you had previously applied for and been rejected for 10 credit cards and you have 10 credit card searches showing on your file, you would have absolutely no chance of being accepted for a credit card anytime soon. However, would this affect your chances or being accepted for a mobile phone contract or a catalogue account for example?

Much appreciated.

Moggles_2

ntswi wrote: »

I am looking to get a mortgage and wanted to do a credit check to make sure all is ok before I apply.

You cannot perform a credit check on yourself. Only lenders can do this. The credit check leaves a footprint on credit files, which is seen by you and other lenders that subsequently search your file.

I can see a search for when I was getting quotes. I was not informed that it would show on my credit report and so wanted to check if anyone knows if it will affect my score.

You can look at your credit reports as often as you like. This activity is not seen by lenders and has no effect on your credit rating.

never-in-doubt

liam1 wrote: »

Also, a different question.

Does anybody know if credit searches for one type of particular product influence your chances of being accepted for another?

To take an extreme example:

If you had previously applied for and been rejected for 10 credit cards and you have 10 credit card searches showing on your file, you would have absolutely no chance of being accepted for a credit card anytime soon. However, would this affect your chances or being accepted for a mobile phone contract or a catalogue account for example?

Much appreciated.

The only way is to avoid the same companies, for instance some only search Experian (Alliance & Leicester) whilst others only search Equifax (Barclays) and others search Call Credit (Monument)..... So to 'con it' you'd say apply for a load that search Equifax see how you get on, then do same for Experian.

The thread by Underground will help. http://forums.moneysavingexpert.com/showthread.html?t=1033817

Moggles_2

rusty-london wrote: »

My Girlfriend and I are looking to buy our own place, hopefully some time this year, but my credit rating isn't brilliant.
I changed my current account provider a couple of months ago but haven't yet closed my previous current account. Would it be worth going back to my old current account which I've had for the past 6 years to help improve my credit rating?

Yes, provided that there's no negative data associated with this account, a six year history is a positive asset.

Lenders like stability, so best practice is to apply for credit facilities, where possible, before you move/change jobs/change banks. Being with the same employer, bank and current address for a while, all help when applying for credit

naijapower

Is monument still current and active? I mean are they still accepting application?

never-in-doubt

naijapower wrote: »

Is monument still current and active? I mean are they still accepting application?

No mate - mentioned this on other thread..... http://forums.moneysavingexpert.com/showthread.html?t=1571879

santsharan81

I see advice on this site that one must reduce any unrequired credit card limits to have a better credit score. whereas another website says having a low usage ratio(used credit/total available credit) is good which essentially means that its better to have high available credit limit.
Please clarify what works best.
thanks

The_Boss

neilwootton wrote: »

I have a question.

I have a credit card with Barclaycard and recently had to put £210.00 on it (at 27.9% APR) after something happened with another creditor.

I cannot pay £210.00 in one full swoop so if I pay back £100.00 a month plus the interest accrued will this help my poor credit history at all?

I know this isn't ideal given that I am paying exorbiant amounts of interest but I am curious as to whether or not paying back something a week is (un)helpful or not.

Many thanks!

Lenders can only see if you've repaid the monthly minimum repayment, not how much - so you don't get extra credit for paying more than this. The benefit comes from paying less interest.

gracie1

Hi all!

I'd love some help on this if you can.

My situation is this:

1. I had been going for an keyworker equity share loan to buy a house. At the time of applying for it I had to apply for the mortgage at the same time. I have since found out that funding has run out so I won't be using this scheme or the Nationwide mortgage I applied for.

2. In the last week I applied for a current account and a credit card to get some 0% credit deals.

3. I have since found a house I think I can buy without the keyworker scheme.

4. Having been turned down for the credit card I checked my credit score with Experian.

This is where the panic attack starts...

My credit score is in the "Poor" category. Experian/credit expert says that this is simply because of my three credit applications in the last three months. It says that everything else in my report is positive.

Given this score I'm realy worried that I won't get the mortgage on the new house I want to buy.

Would a letter to the mortgage company explaining that the three credit applications don't accurately reflect my risk hold any sway do you think?

Any advice would be incredibly welcome

Thank you!