Is it time to apply...???

LollyLou_2

Hi lovely peeps on MSE - loving all your work!!!

I wonder whether you can help me. I have just been looking at my credit file and have realised that I haven't got any recent searches on my file. The last time I applied for credit was in December 2004 - and I'm wondering whether this is having an adverse effect?

To be honest, I don't want any more credit cards or loans as I already have 2 credit cards and a loan which I am paying off each month. I am paying more than the minimum payments on both CC's and have no late payment history so that all looks pretty good on my file. With regards to the loan, unfortunately I defaulted on this about 2 years ago (due to a period of unemployment) and have a default logged, so even if I do apply for more credit, this may prevent me from actually getting any anyway!!

I’m wondering whether I should either just leave things as they are and concentrate on getting the defaulted loan and cc’s paid off or whether I should risk applying for another credit card and then making small purchases each month and paying off in full.

Any advice would be greatly received!

Thanks!!

Clariman

The lack of recent credit searches will not have a negative effect on your credit rating. If you don't need any more credit, then don't apply for any.

Clariman

sicker

Why don't you apply for a new card with a long period of 0% balance transfer rate on it and transfer the balance due from your other cards to it. That way you would be saving the interest you are paying on the other 2 cards and you could reduce your debit balance that much quicker.

John

LollyLou_2

eeek! Conflicting advice. I'd feel more comfortable not taking out any further credit and I think I am demonstrating that I am able to manage my debts well, i.e. paying off more than the minimum amount every month.

Any other views???

sicker

LoolyLou, I'm not suggesting you take out more credit, I'm suggesting you try to replace credit card debt which you are paying interest on with 0% cards on which you will not be paying interest on thus you can pay more to the balance and pay them off quicker.
Whatever you decide to do, good luck

John

The_Boss

LollyLou wrote:

eeek! Conflicting advice. I'd feel more comfortable not taking out any further credit and I think I am demonstrating that I am able to manage my debts well, i.e. paying off more than the minimum amount every month.

Any other views???

Whether you have paid off in full or just the minimum is not reflected on your credit report - just whether you paid on time. I have paid my full amount on Morgan Stanley since I took the card out 5 years ago and dont get extra credit for it.

LollyLou_2

Agreed, its not reflected.

A balance transfer may be the way forward then, but my guess is that the default will prevent me from being accepted from such offers??