What will stoozing do to my credit report/rating?

alexanderalexander

This sounds like a very obvious issue, but I have done a couple of searches on here and on stoozing.com and I can't find any threads which specifically cover it.

I am just starting to stooze. I previously had two credit cards, neither of which offered any interest-free periods or other benefits, so I paid off both accounts in full and closed them. Now I have a new Tesco credit card which I am currently using for almost all my spending. My intention is to carry on using it for a few months, and then move on a new interest-free credit card. When the Tesco interest-free period runs out, I will do a balance transfer to another card and close the Tesco account. And so on and so on.

It seems clear, therefore, that if all goes to plan in a few years' time my credit report will show around ten to fifteen current or recently-closed credit card accounts, and probably somewhere in the region of £30k of credit card debt (albeit, of course, that this won't be a real debt – but viewers of my credit report won't necessarily know that!). I have two worries: firstly, will credit card providers realise that I am playing the system and start to turn me down for credit cards? And secondly, perhaps more importantly, what will it do to my credit rating more generally? It might be worth noting that I am intending on applying for my first mortgage within the next few years – would this be affected by all the credit card records on my credit report?

smartiedriver_2

In 'a few years time' the cards closed in 2011/12 won't be 'recently closed' they will be several years old.

You can swap cards and 0%s for a while, but eventually being a rate tart will catch up with you! There is no set amount or number of cards, but just be wary - it will make you look like a rate tart, and it will be considered in your mortgage application.

PParka

alexanderalexander wrote: »

I have two worries: firstly, will credit card providers realise that I am playing the system and start to turn me down for credit cards? And secondly, perhaps more importantly, what will it do to my credit rating more generally?

Hi,

I've been stoozing for a number of years and haven't noticed any problems. I've even opened, stoozed then closed Halifax credit cards four times in a row and they have never questioned it.

I had a great conversation with the "retentions" department at Barclaycard. The customer services advisor asked if I was stoozing. I said yes, then she asked me how it worked!

If you are willing to put the effort in, it is definately a good idea. But always remember to clear the balance beofre the 0% ends.

Best of luck
Parka

p.s. Almost forgot. It didn't seem to have any affect on my mortgage application either.

turbojohnny

Hi All

I have been both fast and slow Stoozing for a number of years, and when the interest free period ends either paying the card back or balance transferring.

However, I do think you need to be a but careful. Whenever I have closed a card I have received the standard "we're sorry to loose you, come back any time" letter. I am now in the position where I have had cards from most of the main lenders.

I applied for a new Barclaycard 0% offer for my next stooze but got rejected. I checked my credit file and everything is in order. I am a homeowner with about 65% mortgage, all my old cards are shown as closed down, I have a good income, am on the electoral register etc. However, what it also shows is that I have had a stream of cards with £5/£6k limits, have never missed a payment, and have never been charged interest. Essentially apart from balance transfer fees the card companies have never made any money out of me.

Barclaycard sent a letter saying they are a responsible lender and think I have too much credit taken, and on that basis I was declined. I think really that thay have twigged that I had one of their cards before, maxxed it, paid it off, and they didn't make any money.

I have subsequently been accepted for another Halifax card like PParka but don't know what credit lilmit I will get yet....

So I think it is possible that lenders will become wise to what you are up to and eventually the stream could run dry.

Again, my £12k odd on credit cards didn't seem to affect my mortgage app.

Hope that helps a bit.

John

j8yba

Well why is it the credit card companies penalise us for being good payers?? I understand they dont make much money from us, albeit the intial fee they get, but surely we should hold some credibility over the bad payers?

Also, why close the cards? I have 5 cards, and every so often the CC company will send me a letter offering me a new 0% interest transfer deal...

should i be thinking of closing the cards??

co123456

My two pence...

I remortgaged with Northern Rock and remember explaining about my Stoozing activities at the time of negotiation. The lender knew where I was comming from and happy that my (false) debts were offset with cash in savings accounts.

Having paid the mortgage off, I'm now looking at purchasing a new place and will need a mortgage of roughly 3x salary. I don't know how my history will look to the new mortgage company however I'm not taking any risks. Since January this year I've closed all of my credit cards bar one. That expires next month. I've not made any applications for new credit.

The plan is that if I get knocked for the mortgage, I'll have some history of being able to manage large limits, plus evidence that I'm not dependant on lines of credit.

It's finger in the air stuff as I'm sure each lender has their own risk level, and hopefully staff who can appreciate that a stoozer is savvy with credit products and arguably a better bet to loan to.

jamesd

I didn't have any issues getting a mortgage with something like 2/3 of the mortgage amount in unsecured credit stoozed on cards. Helped that affordability for the amount was trivially easy and that I had three different repayment vehicles already in place for the interest only mortgage, all well funded and demonstrating that I could clear the borrowing at any time. 75% LTV for the mortgage, income multiple only a little over one.

With my mortgage application I included a graph showing change in my savings/investments over time and borrowing over time. Also how and when I was planning to clear each card balance, something I subsequently did exactly as I said I would. I pointed to the what is stoozing link at stoozing.com and gave my estimate of how much profit I thought I'd made from the borrowed money, a number that was supported by the chart showing my assets increasing over time.