credit rating

rich_5

Hi. I'm new, forgive me. What I've done for about couple of years is transfer my o/s credit card balance to another card with 0% (nothing new there). The old card has always been left with 0 balance then I'll use the new card for the BT and possibly the odd purchase before repeating the process - apply for new card etc. My problem is I'm concerned the old, not used cards lying dormant will adversely affect my credit rating if it comes to the point that I apply for a card and the company may think 'hang on, he's got 10 cards already to his name'.

How do I or do I need to clear these old cards, which had no defaults, and for that matter old loans, insurance quotes etc. in order I can really spring clean my credit status - which so far has been good?

Also, can I transfer an existing balance from Virgin CC to another card with O% BT, as at moment I'm liable for interest on a few purchases, then if needs be transfer it back to Virgin to continue the benefit of 0% which is still valid till August this year.

Many thanks

PS rich is my name and is not me being flash!! far from it. rich/flash that is.

Reaper

Yes, you should cancel cards you do not intend using again because:
1) They will look at your total available credit. If it is too high in relation to your income it may put them off offering you more cards.
2) Some people have reported hitting a wall when they have 9-10 cards.

I suggest you phone up to cancel in case they feel like giving you any last minute offers to get you to stay.

Yes, I don't see why you can't transfer your balance off the Virgin card and move it back again as long as you are still inside your 0% period.

rich_5

Thanks very much for your time and help in replying to my question.

margaret_3

rich wrote:

Hi. I'm new, forgive me. What I've done for about couple of years is transfer my o/s credit card balance to another card with 0% (nothing new there). The old card has always been left with 0 balance then I'll use the new card for the BT and possibly the odd purchase before repeating the process - apply for new card etc. My problem is I'm concerned the old, not used cards lying dormant will adversely affect my credit rating if it comes to the point that I apply for a card and the company may think 'hang on, he's got 10 cards already to his name'.

How do I or do I need to clear these old cards, which had no defaults, and for that matter old loans, insurance quotes etc. in order I can really spring clean my credit status - which so far has been good?

Also, can I transfer an existing balance from Virgin CC to another card with O% BT, as at moment I'm liable for interest on a few purchases, then if needs be transfer it back to Virgin to continue the benefit of 0% which is still valid till August this year.

Many thanks

PS rich is my name and is not me being flash!! far from it. rich/flash that is.

Rich!
Unless you are getting 0% on purchases also, you should use a diiferent card for that and try to pay off each month. You could also get a card that gives you the 0% on purchases.
Margaret

DazzaMc

sainbury's do a 0% balance transfers AND purchases for 12 months! i havent seen anyone else mention this card on the forums bizarrely so thought Id mention it

Reaper

No they don't. It's 0% for 12 months on purchases only. It's 5.94% (for life) on transfers made in the first 6 months. Details here

EDIT: Or perhaps you were looking at the Advantage card, in which case it is free on both, but only for 5 months.

rich_5

Many thanks to you both

Rich

rich_5

Just so people are aware if not already...I got my equifax credit report online the other day and saw that I still had loads of outstanding credit cards - the majority were settled and 0 balances and I don't even have the cards. However, as per my first query above I wanted to spring clean my record and have them removed from my record. A reply from equifax stated that they can't do this and these old records stay on for 6 years from when settled/closed.

Anyone any thoughts?

Martinslovechild

Rich,

The cards have to remain on your credit file for 6 years, but if they are currently showing as active, then you'll need to phone the respective companies and ask to close the account. Once they've each done this, the cards will show up as 'settled'.

The main difference is that an active card is essentially credit which is available to you whereas a settled card isn't. One of the things that lenders look at when deciding to give you a new card/loan/mortgage is the amount of available credit - it doesn't matter whether it's currently being used or not - it's the fact that it could be used, so you probably need to close these cards off.

Equifax, Experian and CallCredit are simply companies who log the details. They can't change your credit file for you directly. You need to speak with each of the credit card companies to do this.

kenshaz

When the Credit card companies look at the your Experian report, does it state the actual amount of credit available or are they just looking at how many cards, loans ,can they see figures.Because I have just increased my limit and used a convenience cheque,just to stooze ,will this effect my ability to get further CCs or again will they just see the card active.It was to good to refuse,I had £10000 and I now have £20000,because my stooze money with this and other cards is I feel high,in relation to my salary,but if they can only see numbers of cards and not amounts,I am being hopeful.

Reaper

kenshaz wrote:

When the Credit card companies look at the your Experian report, does it state the actual amount of credit available

Oooh yes. With an Experian credit card entry they can see:
* Date of birth you gave them
* Start date
* Current balance
* Credit card limit
* Date settled (if you closed it)
* History of payments. If late how many months late.