Is this a daft Q ???

1010

We (the wife and I) have been using a barclaycard credit card for all our normal spending and purchasing approx £1500 per month instead of a normal current account (pay it off at the end of each month). We have been getting a range of offers that have been mainly cashback but recently they have said they don't have offers. So I am just looking at getting another credit card (AMEX or capital one) to get some cashback again. The credit card is in my name with my wife named on it.

Here is my question by using a credit card this way does it impact my credit rating in anyway or have any negative impact at all ?

thanks

chattychappy

Not a daft Q!

No there is no effect on using a cashback/reward type card rather than a standard one.

There maybe some indirect effects, eg as a result of the search in getting the new card or if you end up with a different limit and/or you don't close the first card.

Really I wouldn't worry. If you shop at Tesco, consider the Tesco clubcard credit card.

RichyRich

All lenders have different criteria for how they score credit applications. The fact that you spend on your card each month and pay it off in full will be recorded. In a similar way, if you spent on your card each month and paid off the minimum, that would be recorded too.

Whether a lender sees this as a positive behaviour is up to the lender. On the one hand, they can see that you are capable of handling credit. On the other, they can see that you're not profitable. On the whole, though, I agree with chattychappy - I wouldn't worry. It's far better to be seen to be using credit (responsibly) than have no credit history at all.

I use the AmEx Platinum cashback credit card and have a Halifax cashback MasterCard as a backup for places AmEx isn't accepted.

The customer service at AmEx is exceptional and I would recommend them without hesitation, with two important caveats. The first is that I have an old AmEx account with no annual fee - I believe this may have changed and if there is an annual fee involved now you will need to consider this in whether you will be any better off or not. The second is the usual one - it's not as widely accepted as VISA or MasterCard- you'll be fine at Tesco or the Shell garage, but probably not at your corner shop. That's why I have a backup MasterCard - each month about 2/3 goes on my AmEx and the balance on the Halifax. You'd struggle to manage on the AmEx alone.

Hope this helps!
Rich

1010

brilliant responses. thanks

CLAPTON

RichyRich wrote: »

On the one hand, they can see that you are capable of handling credit. On the other, they can see that you're not profitable.

this is not so
the credit card company make commission from every purchase from the retailer.

over 50% of UK CC users pay in full each and every month

CLAPTON

1010 wrote: »

We (the wife and I) have been using a barclaycard credit card for all our normal spending and purchasing approx £1500 per month instead of a normal current account (pay it off at the end of each month). We have been getting a range of offers that have been mainly cashback but recently they have said they don't have offers. So I am just looking at getting another credit card (AMEX or capital one) to get some cashback again. The credit card is in my name with my wife named on it.

Here is my question by using a credit card this way does it impact my credit rating in anyway or have any negative impact at all ?

thanks

your wife would be advised to get her own CC and build up her credit rating .. being a second user on your card doesn't affect her credit rating

susan47

1010 wrote: »

We (the wife and I) have been using a barclaycard credit card for all our normal spending and purchasing approx £1500 per month instead of a normal current account (pay it off at the end of each month). We have been getting a range of offers that have been mainly cashback but recently they have said they don't have offers. So I am just looking at getting another credit card (AMEX or capital one) to get some cashback again. The credit card is in my name with my wife named on it.

Here is my question by using a credit card this way does it impact my credit rating in anyway or have any negative impact at all ?

thanks

I think it's a good idea to have second or third credit cards (you never know when one will go wrong or if you're like my husband, you lose it), and also different cards give you different rewards. I also think that what someone else here says is vital - that your wife has her own card, because when something goes wrong and you're not there to sort it out, they won't talk to her about it (experience). We started with Goldfish which became Barclaycard, but the rewards are now rubbish. Then we got an Amex, but it's not accepted everywhere and we don't find the rewards great either. So we also have a Capital One that gives good basic cashback across the board. Then last week I also took out a Santander 123 because even with a £24 annual fee, we'll get that back just with our spending on trains and petrol. So we currently use the Santander and the Capital One mostly, and the cards are half in my name and half in my husband's. He got cancer earlier this year and was in hospital for some time and I had to do everything - that's when you realise you'd be stuffed if you had no cards in your own name. You think you'll live for ever till something like this happens, so you should be prepared for everything.