Credit Reference and scoring discussion area

in Loans
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MSE_MartinMSE_Martin MoneySaving Expert
8.3K Posts
This discussion relates to the following article (click here) which discusses how credit scoring works and how to credit your credit reference files.
Martin Lewis, Money Saving Expert.
Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
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Replies

  • PalPal Forumite
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    What is "scoting"? Your article doesn't mention it.

    I assume it is something to do with behaving like a Scottish person, possibly because of their worldwide reputation for thrift (expect when building parliament buildings obviously)?
  • SystemSystem Forumite, Community Admin
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    I have successfully applied for some 0% balance transfer credit cards in the past and have now built up a fair pile of them. I now have 2 questions for you.

    1) Should I return them to the card company and will it benefit my credit rating if I do so?

    2) Does applying for so many cards lower my credit rating? I have still had no refusals but they are bound to twig soon that I never use the card for purchases!

    Happy New Year to you and all your readers,

    Gerry
    PS Love the site and thanks for all the great advice
  • lisyloolisyloo Forumite
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    Having too many cards open will eventually cause you a problem (as others on this board have found out).

    The problem is not the number of cards but the total available credit you have (including cards you are not actively using).

    I am not sure exactly what the formula is, but there will come a point when your total available credit is too large and you'll start to be declined.

    Personally I worry if I have too many cards because it will be harder to get them all cancelled if I'm unlucky enough to get them stolen.
    I prefer to keep mine to the minimum I need (1 visa, 1 mastercard).
  • MSE_MartinMSE_Martin MoneySaving Expert
    8.3K Posts
    Just briefly

    1. Should I cancel them.
    Yes cancel most unused cards (providing the credit limit isn't needed for extreme emergencies, and there isnt a good 'existing customer balance transfer offer possible) - as you may be eligible for a new customer offer with that company again. (and also less available credit is good for your credit score)

    2. Will tarting impact my credit score - see the Regular Q&A section of the main site.

    Martin
    Martin Lewis, Money Saving Expert.
    Please note, answers don't constitute financial advice, it is based on generalised journalistic research. Always ensure any decision is made with regards to your own individual circumstance.
    Don't miss out on urgent MoneySaving, get my weekly e-mail at www.moneysavingexpert.com/tips.
    Debt-Free Wannabee Official Nerd Club: (Honorary) Members number 000
  • SystemSystem Forumite, Community Admin
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    Thanks for the advice - I will cancel all the un-necessary cards...this could take a while as I need to track down the CC companies address details - still it has been well worth it!
  • SystemSystem Forumite, Community Admin
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    I've just started a new account at the nationwide bank because of their policy of not chrging for withdrawals overseas (im going travelling in a few months) but despite having had a regular wage for about three years since graduating, not going over drawn and generally being a good egg (most of the time) I was turne down for their visa card, menaing the amount of ATMs Ill be able to use abroad is cut drastically. Could the fact I'm not on the electoral roll be a factor for this? Also, as I've been at my present address for less than a year I have to give my mums address, which I'm sure doesn't have a great credit history. Can you help??
  • lisyloolisyloo Forumite
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    Firstly Nationwide do now charge for cash withdrawals abroad from their visa credit card as well as interest (although they are still good value).

    The factor that you are not on the electoral tole could definitely be a factor - get yourself on it.

    Also if there is a bad credit history at your mums address then this could also have an affect.
    Anyone living at the same address with the same surname is assumed to be financially associated.
    You can put a notice on your credit file (which I think is called a notice of disassocaition) to say that you are not financially assocaited with you mum (assuming you aren't).
  • SystemSystem Forumite, Community Admin
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    Going to seem like a stupid question but how do I get on the electoral roll? Or how do I find out if Im on it already? ???

    I seem to have made the mistake for applying to many times for to many different cards in a short space of time and so therefore can't get any low rate schemes at all. Smile wont even give me a current account!!! My bank gave me a ridiculous amount of credit straight away though - only problem is they definetly arent the best - (Natwest).

    Any advice?
  • SystemSystem Forumite, Community Admin
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    A quick question?

    I owed around £1500; I moved away temporarily and fell behind. "Gone away" has been recorded on my credit record, and the account fell in to default. I resumed payment but have a mark on my record. If I pay today would it be likely i could apply for credit and move my mortgage.
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