Credit Card Newbie MoneySavers Guide Discussion Area

Cinders2001

Can anyone help me with the answer to post #11 ?

I think you seasoned Savers will know the answer for me.

THE_DEMOCRAT

:j As a completely new user (I joined this morning) I just wanted to say a big THANK YOU! I stumbled on the Money Saving Expert site by accident and have found an answer to something I have been trying to find out for years!

I have experienced (like possibly many people) a varied financial roller coaster over the years and have found it hard to adapt to the new financial regime that seems to have crept in over the last decade or two. When I first started banking my money, you had an old fashioned thing called a Bank Manager who had DPs (discretionary powers) and they assessed you as an individual and ensured that you didn't bite off more than you could chew. These days, the reverse is true. For all the consumer protection, it is now much easier to get into a financial bind with the banks now not employing managers but salesman trying to sell you critical illness and all sorts of other cover you may not need etc etc.

The Money Saving Expert table of lenders and their preferred Credit Reference Agency is just the information I have been looking for. My experience with a number of lenders is that trying to get information out of them over a refused proposal is like trying to extract teeth. I was terrified to make further applications, although I thought I knew my credit files were OK.
As most financially astute users of this site will know, every application leaves a 'footprint', that in itself makes applications for credit harder to obtain.

The table, whilst not fool proof, will certainly affect my financial behaviour from now on.

Some of you might say - 'If your credit is OK then why worry?' WRONG!!

I have been monitoring my credit files for some time now with Experian and Equifax and it took nearly a year to ensure that they were holding the right information on me. This is very important as every piece of information can materially affect your credit rating!

The trick, however is to not only monitor your file, but to also check your score.

Both major credit file companies work a scam here by charging an annual fee for the file referencing but then on another fee basis for score by score.

My advice is pay up - it's worth it.

Just recently I paid for my credit score with both Experian and Equifax. Both are holding the correct and same information on me.

Guess what? - the ratings are markedly different.

Experian said ' Your credit score category is fair. this score suggests you are a moderate risk borrower - some applicants with this score may have repayment problems if they take out more credit'.

Equifax said ' Your score is highly predictive that you would be a strong candidate for credit. You are well above the average for UK borrowers. most credit granters would consider this score excellent'.

So why the difference? The only thing is that Experian refuse to acknowledge my length of residence. I moved to my current address exactly 4 years ago, but a couple of days after the local authority deadline for registration of electors. Although I informed the Local Authority straight away, Equifax has me on the roll for a year later. Length of time on the electoral roll might seem as insignificant. Be aware it isn't!

Anyway, armed with the Money Saving Expert table, I now know who to use and I expect it will materially affect my future financial dealings and well being. WELL DONE.

PS. If others have had similar experiences, I would welcome feedback.

grumbler

THE_DEMOCRAT wrote:

...I ... have found an answer to something I have been trying to find out for years! ...
The Money Saving Expert table of lenders and their preferred Credit Reference Agency is just the information I have been looking for. ...The table, whilst not fool proof, will certainly affect my financial behaviour from now on.but then on another fee basis for score by score...
Just recently I paid for my credit score with both Experian and Equifax. Both are holding the correct and same information on me.

Guess what? - the ratings are markedly different...

Experian said ' Your credit score category is fair. this score suggests you are a moderate risk borrower - some applicants with this score may have repayment problems if they take out more credit'.

Equifax said ' Your score is highly predictive that you would be a strong candidate for credit. You are well above the average for UK borrowers. most credit granters would consider this score excellent'.
...armed with the Money Saving Expert table, I now know who to use and I expect it will materially affect my future financial dealings and well being. WELL DONE.

My feeling is that you misunderstood something. Yes, different lenders use credit files from either Experian or Equifax. However, AFAIK, majority of them use their own scoring systems, but not the ready-made score provided by the CRAs. When making your future financial decisions you can rely absolutely only on the information contained in your credit files. The credit score supplied by CRAs is just a rough estimation and is not very trustworthy.
See also http://www.stoozing.com/credscore.htm ...

THE_DEMOCRAT

:beer: Many Thanks grumbler.

Whilst you may well be right, the conclusions the CRAs reach on ones' credit score with the same data show how fickle this whole business of making money is!

I can only conclude that I WILL use the Money Saving Experts' CRA table on the basis that what the CRAs see the lenders will also see, or am I being naive?

M_Thomson

THE_DEMOCRAT wrote:

:beer: Many Thanks grumbler.

Whilst you may well be right, the conclusions the CRAs reach on ones' credit score with the same data show how fickle this whole business of making money is!

I can only conclude that I WILL use the Money Saving Experts' CRA table on the basis that what the CRAs see the lenders will also see, or am I being naive?

As grumbler says, the credit card issuers each score differently. They will never reveal the way they score customers as this could lead to application fraud. The score that the credit reference agencies use on their websites have no bearing whatsoever on wether a lender will grant credit. They are simply a quick way to lose £5!

Cinders2001

Ok, I posted a message asking the difference between a credit card and a store card in Asda, as it always took me to the same page when I clicked on either links.

In Martins latest email, I now have my answer!

Thank you for clearing that up!!

CLIVELESTER

Anybody had any issues with GM card. They wrote to myself asking me to transfer any balances from other credit cards to their 0% offer. I did this with a balance of £1500, well within my £5400 limit. The folllowing week they wrote to advise my limit had been reduced to £500 (no reason given). Now want me to pay back £1000,charge me £12 for being over limit as well £30 transfer fee (2%). Appears a little unfair to me, understatement !

chaffey

Ok, this is probably a very stupid question but as I am new to credit cards I will ask it anyway!

Am I right in thinking that if I pay the full balance on my card every month, I only pay for the goods I have purchased and no interest is charged?

I currently have a Classic card from Nationwide that I opened last year along with a Flexaccount to use whilst traveling (no charges). Now I am back and the 9 months 0% offer has expired on the credit card, so I am considering if it is worth keeping it to use abroad in the future or if I should cancel it and get a new one. I only use a creditcard to but online so I will always be able to make the full payments each month. Any advise?

Many thanks

YorkshireBoy

chaffey wrote:

Am I right in thinking that if I pay the full balance on my card every month, I only pay for the goods I have purchased and no interest is charged?

Yes. As long as your payment clears onto your account by the due date, you’ll enjoy up to 56 days interest free on purchases only.

I currently have a Classic card from Nationwide that I opened last year along with a Flexaccount to use whilst traveling (no charges). Now I am back and the 9 months 0% offer has expired on the credit card, so I am considering if it is worth keeping it to use abroad in the future or if I should cancel it and get a new one. I only use a creditcard to but online so I will always be able to make the full payments each month. Any advise?

If you mean re-apply for another Nationwide Classic card, then I believe you can’t have the same offer twice with Nationwide. So, keep your existing Nationwide card for all your foreign travel and if you want another 0% on purchases card, apply elsewhere for it.

weeMe_3

YorkshireBoy wrote:

Yes. As long as your payment clears onto your account by the due date, you’ll enjoy up to 56 days interest free on purchases only.

Hi, I am a credit card newbie too. I have just received my A&L credit card which gives 0.5% cash back as a reward if I use my card. I want to make sure my understanding of what you are saying is right. Lets say:

I have £0.00 on my account right now. Say, I spend £1.99 online. I have 56 days to put £1.99 into my account WITHOUT any being charged? And I can transfer the money in from another account online? So, basically, I could wait till the statment to arrive and then put money in?

What if I put in £5 after this £1.99 purchase. Does it mean I don't get any interest on my £3.01. And I am free to spend the £3.01 next month....????

Thanks for your help!