Credit card tarting is bad!

saffypooh

Martin continually suggests that regularly changing from one credit card company to another to achieve a period of interest free credit or lower charges is the best way of reducing credit card debt. However, a very nice fellow at my bank told me in confidence that if you continually apply for and/or swap credit between companies, each time you do so you will incur a negative mark against your credit rating. Thereby reducing your credit rating which will result in higher interest charges and the possibility of refused credit.

I have no reason to disbelieve the bank bod as he was genuinely concerned about my debt problems. What do you think?

Karmacat

As far as I know (and I've credit-tarted for about 3 years) the trick is to close each card as you no longer need it - if you leave them on, there's problems.

Also, you have to only apply for one at once. Each application leaves a 'footprint' on your file, but those footprints expire after about 6 months.

For most of the time I've been tarting, I didn't close my accounts, and it didn't make any difference. I was recently accepted for the Cap One 15 month tart card (so to speak!) and Martin had that listed as being quite hard to get on to, with stiff criteria.

Bank staff may well be genuinely worried about you, but they probably won't be familiar with a system which is designed to manipulate the banks' manipulation of their customers, and they won't want you to do it, either. Don't know about the person you spoke to, but thats my two pennorth.

reecos

I believe that multiple applications for new cards within a short space of time can have a negative affect on your rating.

If you manage the accounts well, don't switch too often, reduce your credit limit as you reduce the card and close the account after you have switched from it there is no affect on your rating.

immoral_angeluk

I think companies are only looking for customers who they can make money out of TBH.... so if it's obvious from you're history that you regularly tart then you're more likely to be declined on the grounds that they're not going to make any money out of you..

reecos

Beat me to it Karmacat

hbl_2

I've had three BT cards for tarting, but in each case I've paid off the balances (which were all around £500) in the 0% period. In only one case have I cancelled the card, the other one I kept as the normal rate was better than my bank's credit card. I currently have one on the go, as you can see in my sig, but that will also be zero'd before the 0% runs out.

My understanding of the tart situation is that applying for cards impacts your rating, especially if you apply for a high number in a short time, but paying them off and not missing payments etc is all in your favour!

Also, when I was California last, I was reading all their personal finance books, and there was an explanation of credit which put emphasis on available credit vs used credit. eg, three credits cards and an overdraft of $1000 each, but only $250 on each one. So $4000 credit limit, but only $1000 used - 25%, which illustrates responsible credit and reliability. Does anyone know if that's the case here? I have about £10,000 available on credit, and I use £1500 (soon to be £1000) of it.

Sammz

I have been tarting for about 5 years and never had a problem. My credit record is good. Infact the "problem" that I have is not applying for credit often enough! It's the applying for many in a short space of time that causes a problem.