credit card use info on file???

louiser123

hi,

this is just a query not sure if its posted in the right section so appologies if its not.

i was wondering why the information on our credit files regarding credit cards and running accounts now has more info in them, like what the spending has been in that month, how much has been paid ect,

surly this has no effect on your score and is just marketing info getting info on ppls spending habits i personnaly feel its going a bit too far and feel too much info is given out. surley that info is noone elses business but the lender in question and us??

i thought it was enough info on a file saying paid ok, paid late or in arrears for prospective lenders to make a decision, it appears now if we dont fit thier idea of how and when to spend we could be declined on that info alone regardless of history of payment.

it makes me slightly angry to say the least, just wondered if anyone with knowledge had any idea why they do this and what impact it does have on credit score ect.


louise

clio

I suspect they do it to be able to look at either reducing the credit limit of your credit card or increasing the apr because they have a broader picture of your finances and as it,s in black and white then they have got you by the jingle bells.

Richard019

To ease with determining affordability for new credit?

Someone with a balance of £2,200 on a £2,500 limit could fall anwhere between two extremes:

1) Someone who spends £2,000+ a month on their card but pays it off every month. In this case the credit card companies are making around 3% a month with very little risk. These customers can probably easily afford to pay back extra credit allowance.

2) Someone who has maxed their card out and is only paying back the minimum each month because that is all they can afford. Whilst unless they're on a promotional period (and I suspect card companies will be able to work that out in the case of new customer offers) the card companies are making an absolute fortune in interest on them, it's probably fair to say that they can't afford new credit. Whilst they might be suitable for a BT card the lenders probably wouldn't want to give them a purchases card. (Perhaps it's just me but a BT suggests efforts to sort out the debt, where as a purchases card would suggest a way for the applicant to get themselves into more trouble)

louiser123

on just one more note if they give you a card, give you 5000 limit, you use it, pay back on time regardless of wether its minimum or full balance then thats up to me surley, might have thousands in the bank but dont fancy paying full balance, if you have the limit in my mind its up to you how you use it so long as its payed right either way.
sorry but i just feel lately that some of the information held on all of us isnt needed, but we just simply take it for granted that its right. banks and financial institutions as well as other gov bodies hold information they dont always need then when fraud occurs and identity theft they actually have the balls to blame us!!

ok moan over i got that off my chest!!:D

Richard019

louiser123 wrote: »

on just one more note if they give you a card, give you 5000 limit, you use it, pay back on time regardless of wether its minimum or full balance then thats up to me surley, might have thousands in the bank but dont fancy paying full balance, if you have the limit in my mind its up to you how you use it so long as its payed right either way.
sorry but i just feel lately that some of the information held on all of us isnt needed, but we just simply take it for granted that its right. banks and financial institutions as well as other gov bodies hold information they dont always need then when fraud occurs and identity theft they actually have the balls to blame us!!

ok moan over i got that off my chest!!:D

Can I put it another way, the information probably isn't for the benefit of your current lenders, it'll be for new applications:

If I were a lender and I saw a credit file that said someone had a huge debt and only a small payment I would look for an indication it was a promotional rate on the card, and if there was no indication of it I'd then ask myself this question:

Why would anybody not pay off the card charging double figure interest in full? And I've got 3 options:

1) They don't have the money - in which case I don't paticularly want to give them a shiny new card lend them money.

2) They have the money, but they intend to spend it on something else - for all intents and purposes this is the same as 1), they may as well not have the money so I don't want to lend to them.

3) They have the money but they're an idiot that would rather incur massive interest charges every month to have a few pound in the bank for a rainy day than save the interest charges by paying it off and then using the card in the event of a rainy day - again, in this case I don't want to lend them money.

louiser123

id say lend it quick we can make a fortune!!! lol :eek:

Richard019

louiser123 wrote: »

id say lend it quick we can make a fortune!!! lol :eek:

Up until about a year ago so would most lenders.

If I'm right about what it's for then I think it's nothing but a positive thing. Whilst I do believe the responsibility lies with us as card holders I am actually appalled at how much additional credit (on top of my mortgage) I've been able to get in the last year. I can certainly see how people on similar and lower incomes get themselves into trouble. Anything that can be done to limit the amount of unaffordable debt people can get can only be a good thing. I certainly don't agree with a blanket ban level based on income and committed expenses as I generally live on far less than other people with the same figures so my ability to repay any debts (or stoozed money) is greater than theirs.

jonnyb

where have you seen the data that says how much was spent, or how much has been repaid ?
I work for Experian, and subscribe to Credit Expert, and on my file it shows limit and balance for each credit account - there is no other data.

PAULUK08

jonnyb wrote: »

where have you seen the data that says how much was spent, or how much has been repaid ?
I work for Experian, and subscribe to Credit Expert, and on my file it shows limit and balance for each credit account - there is no other data.

This all shown on Equifax.

exel1966

louiser123 wrote: »

like what the spending has been in that month, how much has been paid ect,

i thought it was enough info on a file saying paid ok, paid late or in arrears for prospective lenders to make a decision, it appears now if we dont fit thier idea of how and when to spend we could be declined on that info alone regardless of history of payment.

it makes me slightly angry to say the least, just wondered if anyone with knowledge had any idea why they do this and what impact it does have on credit score ect.


louise

CRA's do NOT directly report your monthly spending, nor how much you've paid each month. They do however display your available credit (limit) and any debt against that credit ie. your current balance. They can also display the terms of a finance agreement/loan etc. This is nothing new and has been like that for years.

Not really sure what/why you think what you do ? Maybe you could elaborate ?

Your credit score will indirectly be affected by the amount you pay each month because the less you pay, the higher your outstanding balance which will be looked at when assessing future applications.

exel1966

PAULUK08 wrote: »

This all shown on Equifax.

Certainley NOT on my Equifax report. Maybe you could explain exactly where it is on yours ?