Existing cards and effect on credit rating/limits

no_debts_no_more

I have four credit cards. I have just done a balance transfer on MBNA for stoozing purposes. I have Amex Platinum for the cashback, Natwest for when Amex isn't accepted (Airmiles) and Nationwide Visa comes out when I go on holiday.

All of the latter three get paid off in full each month. Will they affect my getting another 0% card, and the limit on it? As I've eaten the BT fee for the cash transfer, I may as well go for further CCs to get vfm to extend the process.

Their credit limits average around £7500. I know I have a good credit history from checking my Experien report this time last year. I've had half a dozen 0% cards in the past five years - firstly to pay off debt, and then to buy stuff on 0%.

Reaper

Both your existing level of debts and your total credit limits will be taken into account when deciding whether to give you another card.

So yes, even an unused card can have a negative effect. I too have cards I keep for spending at home/abroad. With these I have asked them to reduce the credit limits to minimise the effect on my stoozing. I recommend you do the same as I doubt you will ever need to spend £7500 on a credit card in a single month.

johnsmith_4

no_debts_no_more wrote:

I have four credit cards. I have just done a balance transfer on MBNA for stoozing purposes. I have Amex Platinum for the cashback, Natwest for when Amex isn't accepted (Airmiles) and Nationwide Visa comes out when I go on holiday.

All of the latter three get paid off in full each month. Will they affect my getting another 0% card, and the limit on it? As I've eaten the BT fee for the cash transfer, I may as well go for further CCs to get vfm to extend the process.

Their credit limits average around £7500. I know I have a good credit history from checking my Experien report this time last year. I've had half a dozen 0% cards in the past five years - firstly to pay off debt, and then to buy stuff on 0%.

I have never closed a credit card account, I always like to keep them incase of existing customer offers, I have no problems applying for new ones every year. I have 20 current credit cards. Having so many does not seem to lower my credit score infact it may increase it because it shows a good repayment history.

grumbler

johnsmith wrote:

..I have no problems applying for new ones every year. I have 20 current credit cards.

:rolleyes: You will have soon. Mark my words ...

johnsmith_4

grumbler wrote:

:rolleyes: You will have soon. Mark my words ...

Why? what is going to happen soon

YorkshireBoy

johnsmith wrote:

I have 20 current credit cards. Having so many does not seem to lower my credit score infact it may increase it because it shows a good repayment history.

John, I'd be very interested to know what your total available credit is, as a percentage of your salary. Also, how much of this are you actually "using"?

The reason being that you appear to be operating outside the "norm" for a stoozer.

Clariman

YorkshireBoy wrote:

John, I'd be very interested to know what your total available credit is, as a percentage of your salary. Also, how much of this are you actually "using"?

The reason being that you appear to be operating outside the "norm" for a stoozer.

Indeed he is outside the norm, but we do know of one other stoozer on the stoozing website who does not close his stoozing cards. It would be interesting to know a bit more how this works for John.

Clariman

No_6

Re; Close unused Credit Cards ???

Have been a rate tart for years now, only discovering Stoozing in 2003
thanks to Stooz @ The Fool.

I never used to close old cards, just applied for new ones and was never rejected
or got lower limits, always got between £6000 to £9500.
Apart from MBNA, who let me have £23000 on 2 cards.

Reading this site and the Fool made me wary, so decided to close
unused accounts in 2004 and 2005.
But !
Take my recent £2 Experian credit report ; end Oct 05

It shows;
5 cards closed in 2004
5 cards closed in 2005
giving
13 settled cards in total, with old credit limits of............... £57500

I didn't think that settled cards would still show the old available
credit but the report does. Only 2 not shown.
Do other CC's see this ?

It also shows No late payments, thanxs to Direct Debit !
and records go back to year 2000.
Really pleased with that !!
TAKE NOTE NEW TARTS & STOOZERS !!!

2 new cards this year, July & Sept 05, total credit £17300
Nov 05; just applied for 2 new cards, both approved,
LTSB awaiting limit ( TOC sent back) Co-op gave £ 6400

My current cards on Experian are 5 with a credit limit of £39700
largest is Egg Green with £14500, waiting for anniversary bt.
LTSB,Co-Op & Egg Money not showing yet.

Would be even more but my old Virgin card that
used to have a limit of £18000 (stoozed) was reduced
to £2000 when they wouldn't extend the 9 month 0%
Will cancel this one soon, as mbna are my favourites.

Current amount of credit in savings at the moment £17300
not including £6400 from C.op or LTSB ? £ ??

So my old 13 settled cards show ......................£57500
and my current 5 cards ..................................£39700
total............................................................£97200

my salary £28500
current borrowings 61% of salary
current credit ; 5 cards 139% of salary

Is it just good payment records that are the answer
rather than total credit available ?

Regards
No6

Toby_3

No 6 this is a terrifying amount of debt.
And you are carrying this all on 0% ??

I owe #3500 on a 0% Sainsburys card which I transfered from Halifax 0% in October, but having problems with Sainsburys at the moment as they are charging me 0.482% per month with a strange letter from Customer Services saying they do not offer 0% balance transfers.

YorkshireBoy

No_6 wrote:

I didn't think that settled cards would still show the old available credit but the report does. Only 2 not shown.
Do other CC's see this ?

Yes, and they'll see it for 6 years from the settled date.

No_6 wrote:

So my old 13 settled cards show ......................£57500
and my current 5 cards ..................................£39700
total............................................................£97200

I'm not sure the £97.2K is "relevant". However, the £39.7K certainly is.

No_6 wrote:

Is it just good payment records that are the answer
rather than total credit available ?

In the current climate, I'm of the opinion that lenders may accept a couple of late payments. However, once you exceed their threshold for available/used credit (in relation to your salary) you will fail their internal scoring systems and be declined.

YorkshireBoy

Toby wrote:

No 6 this is a terrifying amount of debt.

It's not "real" debt Toby - this is the stoozing board.