Applying for new credit cards

acw80

Could anyone help with a few general questions about applying for new credit cards please?

My partner and I both have credit card balances of around £15k. Our credit ratings should be good (aside from the level of debt) although from previous applications and offers we think my rating is better.

We've both had a 0% card (coming to an end) and a higher rate card and want to get as much debt as possible on 0% or low % deals. My questions are...

1. The website suggests that we shouldn't make multiple applications and should space applications out:

- Does 'multiple applications' literally mean more than one application? So we shouldn't apply for, say, two 0% cards at the same time?

- How long should we leave between applications to space them out?

- Will applications made by one of us (we live at the same address) affect applications made by the other (i.e. does the advice re. multiple applications and spacing applications out apply to us jointly or only as individuals)?

2. If my credit rating does prove to be better and I can get better deals or higher credit limits, can I transfer balances from my partner's cards to mine, or can I only do balance transfers from a card in my own name? If the card has to be in my name, could we get round this by making me a named cardholder?

Thanks in advance for any help you can give!

Moggles_2

acw80 wrote: »

The website suggests that we shouldn't make multiple applications and should space applications out. Does 'multiple applications' literally mean more than one application, so we shouldn't apply for, say, two 0% cards at the same time? How long should we leave between applications to space them out?

Well, it depends.

Think about the number of applications for credit you've made in the past 3 months. Include new bank accounts, catalogues, store cards, mobile phones etc. not just credit cards and loans. Anything with credit facilities will leave footprints on your file. Then consider your plans over the next 3 months.

Credit checks appear on your credit file more or less in realtime. In itself the effect of a couple of credit card applications in a month may be insignificant but, in the context of your credit history as a whole, could certainly have an impact on your credit rating.

Remember credit checks appear on your credit file more or less in realtime. Any card provider that searches your file subsequently will see each credit check until it drops off your file 12 months later. An increasing number of online and telephone credit card applications (those which give instant decisions and credit limits) are now realtime applications too

Moggles_2

While Martin recommends spacing out credit applications, there is an argument in favour of applying for two cards at once.

If, for instance, you make two applications the same day, each lender sees only their competitor's credit checks. If you submit those same applications at intervals, providers not only see the credit checks, but also your available credit increasing with each successful application. So your credit rating could look temporarily worse after the second application, than if you had applied for them together.

The drawbacks with this strategy are that, assuming you're successful, you'll have to fork out two BT fees in the same month. Also your 0% promotions are likely to expire together, so I would keep this in mind when making your selection, unless you're prepared for another blitz in X months time to pay off any remaining balances.

Moggles_2

acw80 wrote: »

Will applications made by one of us (we live at the same address) affect applications made by the other (i.e. does the advice re. multiple applications and spacing applications out apply to us jointly or only as individuals)?

Each applicant is scored individually, so your credit application neither helps nor hinders your partner's chances.

Btw, if you share a financial product with someone else, eg. joint bank account, then you are financially linked and the management of your own affairs could have a knock-on effect on their credit rating, but simply occupying the same house as someone else has no effect whatsoever.

Moggles_2

acw80 wrote: »

If my credit rating does prove to be better and I can get better deals or higher credit limits, can I transfer balances from my partner's cards to mine, or can I only do balance transfers from a card in my own name?

You can switch credit card balances from family, friends or Dave down the pub.
Please bear in mind though, the person whose card the balance is shifted to, becomes soley liable for the debt. If you were to fall out, you couldn't ask the card company to charge your partner for any remaining balance.

From the lender's perspective, it's not a problem. If you request the transfer by phone, Customer Services may ask you for the name on the card, but this is purely an additional verification check. At the end of the day, the card company is after your business. They're not really interested in knowing who ran up the debt, as long as you, their customer, pays up on time each month!