How long before applying for another credit card?

Complicated_Bear

Hi,

I currently have the Lloyds Airmiles duo credit card (Amex and Mastercard but on the same account) as I am trying to collect extra airmiles. Having read Martin's article on how to boost airmile points I would also like the Tesco credit card, as it pays out better than Mastercard when Amex is not accepted (and is better than Amex when spending in Tesco from what I can work out).

However, he warns in the article to be careful of credit ratings if applying for several credit cards, but I cannot seem to find advice on how long to wait etc.

I applied for and received the LLoyds account in March of this year, and it automatically gets paid off in full every month. I have a good credit rating (I think although I need to check). Am I ok to apply for the Tesco credit card as well or should I wait longer to avoid damaging my credit rating?

Moggles_2

It depends.

Think about the number of applications for credit you've made in the past 3 months. Include current accounts, loans, catalogues, store cards, mobile phones etc. not just credit cards. 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 real time. In itself the effect of one credit card application in 3 months may be insignificant but, in the context of your credit history as a whole, could certainly have an impact on your credit rating.

Remember any firm that searches your file subsequently will see each credit check until it drops off your file 12 months later. Btw, an increasing number of online and telephone credit card applications (those which give instant decisions and credit limits) are now real time applications too.

Hope this helps

Complicated_Bear

Hmm, thanks. I don't think i've applied for anything much really (although liek I say I need to check my report). My car repayments began over a year ago, I took out my mobile phone contract a year ago...The only things I think I have applied for this year are Lloyds credit card in March, and I also switched banks around the same time which included my current account and a joint currect account (my personal one had an overdraft of 400 pounds as well, although I have hardly used it, but my partner got rid of his overdraft the other day and they did a credit check to REMOVE his overdraft-crazy!). I have transferred my ISA to my new bank as well this month, I don't know if that is a problem....

Moggles_2

I have transferred my ISA to my new bank as well this month, I don't know if that is a problem.

No, because your ISA doesn't provide you with credit facilities.
The applications for new current accounts would have triggered a search or two though.

Complicated_Bear

Cool, thank you for your help. I think I'll wait a while :-)

PNPSUKNET

Tesco declined my other half as her last credit card was taken less than 6 months ago

Moggles_2

PNPSUKNET wrote: »

Tesco declined my other half as her last credit card was taken less than 6 months ago

Interesting, very interesting.
(AFAIK, yours is the first report along these lines.)

PNPSUKNET

this happened this week, I never thought it also. But we querried it as she has only £3500 b/card, £1000 citicard with zero bals, never on any agreement late payments or anything. but the above cars were taken out in april

jack290292

Not sure how they reach these decisions. I opened Post Office CC in Feb, Virgin CC in May and Tesco still accepted me in June...not a huge credit limit though 2.5K

Moggles_2

jack290292 wrote: »

Not sure how they reach these decisions. I opened Post Office CC in Feb, Virgin CC in May and Tesco still accepted me in June...not a huge credit limit though 2.5K

Indeed, there are any number of possible reasons.
For instance, your respective annual incomes in relation to your used and available credit could be one factor.

That said, Tesco may simply have moved the goalposts over the last two months. Who knows?

Complicated_Bear

It's all so confusing!