Stoozing bad for credit rating?

FUNKYDADDIO

Hi Guys,

I have been loyal to Tesco credit card for years and have finally decided to start stoozing. My only question is that I have just put my house up for sale and will be looking to borrow more money when it sells (hopefully). If I have a CC debt from stoozing will this affect my borrowing?

Thanks
Paul

sujman

Yes it will, unless you say that you will consolidate all your debt with the new borrowing.

FUNKYDADDIO

Thanks, If I pay in full before seeking new mortgage will it not have an impact? Cheers..

lee1985

FUNKYDADDIO wrote: »

Thanks, If I pay in full before seeking new mortgage will it not have an impact? Cheers..

If you pay in full it may or may not have an impact.

Generally, it will have less of an impact but then you will have lots of available credit so if you have other credit cards with high limits it could go against you, to some lenders.

You will have to wait at least a month though for the balance change to be reflected with CRAs, check your credit report (with all 3 CRAs) after a month and make sure all is in order, and that your Tesco credit card shows a zero balance before you apply for further credit.

jamesd

Stoozing does have an effect but it's not necessarily a bad one because if done properly it also shows that you're able to manage credit. Accompany any application you make with a description of what you've been doing and that it's a profitable activity, not an indication of debt trouble.

I had unsecured borrowing, mostly stoozing, amounting to more than 50% of my mortgage when I got it. I wasn't asked to repay any of it and the lender indicated that they would be happy for me to take out another mortgage of the same amount if I wanted to. I accompanied my application with an estimated profit (more than £12,000 in one year) with details of amounts, end dates of deals and how I planned to handle each one as that date was reached. Let them know that if they have concerns you're happy to consider reducing balances to keep within their guidelines. My LTV and income multiple were both good - 75% and less than 1.5 - so it was probably an easy decision for them.

No need to actually repay. Wait until they ask, because they might not. The closer you are to their affordability check failing, the greater the chance that they will require you to repay some.

Make sure that you also accompany the application with details of where the deposit money is coming from so they can see that it's not funded by the stoozing.

atsoc15

A credit card with a high balance, especially one close to the limit will have a negative affect when a lender views your credit file.

However this can be the same negative affect that fully paying your card every month can have as when the credit card company updates the reference agencies you may have a balance at that time, even though you pay it off every month