Application for 0% credit card & new current account

theclarkofben

Hi

I currently have the following:

- Credit score of 890 (just into the 'good' rating bracket).
- A current account with no overdraft facility that has more than £1300 deposited into it each month.
- A ISA with same bank (HSBC) with nothing in it.
- Another current account with same bank with nothing in it.
- A bank loan with same bank, originally obtained for £4000 in 2009, now down to £3500 left.
- A credit card with same bank that is used frequently and hasn't had any missed payments in last 18 months. Currently with a £0 balance (no debt).

I want to do the following:
- Open a Santander current account and transfer payments/direct debits to the new account. Doing this in order to get the £100 cash back offer.
- Apply for and obtain a 0% credit card so I can make a £400 purchase now that I can pay off over next 6-12 months.


Firstly...
Is this possible? Will I be expected to clear all debt if I wish to transfer my HSBC current account to Santander?

Secondly...
If I kept the HSBC account(s) open, idle with no cash in or out, will it effect my credit rating?

Thirdly...
Will my credit rating be effected by my applications? IE - if i apply for both simultaneously will I mess my rating up or hinder each application?

Any comments would be highly appreciated.

Many many thanks!

Ben Clark

Any

Firstly - your credit rating of 890 means absolutely bu**er all
Secondly - if the bank loan was separate account, ie you took out normal loan it has nothing to do with your current account - so you won't need to clear the loan in order to change currenct accounts
Thirdly - no, making 1 application for current account and 1 application for credit card will not affect your credit score. Just don't apply for anything else immediately.

theclarkofben

Thanks for that

Just to clarify - If I keep multiple current accounts open (i.e. I leave old accounts open when creating new current accounts) and they remain idle with no money going in or out, that doesn't have negative effects on my credit rating / future applications / assessments?

Tixy

As you have no overdraft then keeping that hsbc current account will have no impact at all on your credit rating (well that is assuming you don't have any forgotten about dds that will come out and take you into an unauthorised overdraft).

If you leave a credit card open and unused then that would count as availabe credit when you are being assessed for new credit products.

theclarkofben

Thank you

I applied for the 0% credit card and got refused. Maybe its because I already have a credit card with HSBC? I shall close down that credit card and re-apply. How long should I wait before I re-apply do you think?

Thanks for all your help

Tixy

Who did you apply to for the 0% card? to be honest these are getting harder to get.
I'm not sure closing your hsbc card will help - and could leave you in a position where you have no credit card.

theclarkofben

I tried for the Sainsburys credit card - 0% for 12 months. How long should I wait before applying for a different 0% card?

Any

When you say you have "credit rating" 896...
Makes me think that not everything is as it should be

How long ago was your last late payment/charge
How much do you earn
How long do you have your job for
How long do you live at your address for
Are you on electroral roll
How many credit accounts have you had so far in your life? that show on your report?

Do not apply for anything now.

BugsyBrowne

Any wrote: »

When you say you have "credit rating" 896...
Makes me think that not everything is as it should be

How long ago was your last late payment/charge
How much do you earn
How long do you have your job for
How long do you live at your address for
Are you on electroral roll
How many credit accounts have you had so far in your life? that show on your report?

Do not apply for anything now.

Completely agree he should of credit score off 999 like the rest of us and the majority of the uk who have payed for experian's credit score.

theclarkofben

Any wrote: »

When you say you have "credit rating" 896...
Makes me think that not everything is as it should be

How long ago was your last late payment/charge
How much do you earn
How long do you have your job for
How long do you live at your address for
Are you on electroral roll
How many credit accounts have you had so far in your life? that show on your report?

Do not apply for anything now.

Yes 890 is what Experian has told me I have. In answer to your questions:

- Haven't had a late payment in 18+ months. I believe around 6 months ago I accidentally went £30 or so overdrawn for a day or two.

- I earn £23,500 a year

- I have worked for this employer since June 2008

- I have lived at my current address for 1 year exactly. I live at my previous UK address for ~ 22 years

- I applied for the electoral role 3 weeks ago (I'm not sure if the council as action my request yet)

- So far in my life I have had 2 credit cards (1 still active with £2500 limit but no current debt on it), 1 bank loan (still active, see above), 3 current accounts (all 3 still active - only 1 being used).

I haven't applied for anything like a card or loan (apart from very recently as described above) for last 18+ months.

Ideas?

Thanks again for all your help and advice!

Any

It seems that the electroral roll might be the reason.
Most lenders want you to be on electroral roll to even consider your application. It is another part of identity verification process.

It is not easy to get hight street credit card offers nowadays and you need to do everything by the book.

I suggest you wait another 3-6 months, start using the card you have for everyday purchases and pay it off in full every month (so not incurre any interest) which will help you build up recent credit history and then apply again for the credit card.

I wouldn't worry about already having 1 card and applying for another one, I earn the same as you and I currently have 6.

It seems the main reason really was lack of recent credit history (which si what is important to lenders, not "credit rating", but credit history!!!) and also the electroral roll.

As for current account - I personally would apply for that one no matter if you want it. That doesn't require such a strict credit history criteria if you already have one running and you have nice stable job.