Applying for a credit card after getting a mortgage

freeman3030

Hi all,
My partner and I have just bought our very first home together which is really exciting, our first mortgage payment is due out in 3 days which will be our first brick paid for! We've already completely redecorated from top to bottom, plastered ceilings, replaced flooring etc. but the bathroom really wants replacing. We had already started saving for the bathroom before we moved in and we've worked out it should cost about £2,000 for the bathroom suite we would like including tiles and flooring. My dads a builder and he's really helping us out by fitting it all for free (thats what dads are for, right?!)

Between us we've got £1,200 but thats all our savings and I really don't want to have nothing left just incase we need some cash. So I thought about applying for a Tesco credit card as it has 0% on purchases for 16 months, which works out at £125 a month. We plan to pay £150 a month off of the credit card to finish paying before the end of the 16 month period.

I'm just dubious about applying for credit having only taken out a mortgage 4/5 weeks ago as I understand our credit score would be at a all time low?
Also, if our credit card application is successful I'd imagine that our credit limit will probably be lower than £2,000... should we do a joint credit card application (if thats possible) or take out two separate credit cards? Or one under one of our names. It's so confusing, if it is going to completely ruin our credit scores we wont bother and just save up for a few more months.

Sorry for the ramble - Advise please!!

grumbler

freeman3030 wrote: »

Between us we've got £1,200 but thats all our savings and I really don't want to have nothing left just incase we need some cash. So I thought about applying for a Tesco credit card as it has 0% on purchases for 16 months, which works out at £125 a month. We plan to pay £150 a month off of the credit card to finish paying before the end of the 16 month period.

What's the point in paying much more than the minimum payment if the balance is at 0%? Put your money into a regular saving account instead.

Also, if our credit card application is successful I'd imagine that our credit limit will probably be lower than £2,000... should we do a joint credit card application (if thats possible) or take out two separate credit cards?

Joint cards don't exist. It's always a main cardholder that is responsible for everything.

The_Boss

You don't have a credit score just for your information.

But you are right that lenders would likely not score you so positively immediately after the move as your circumstances have just changed massively, you've not lived there long and are not likely registered as on the electoral roll there yet. Probably best to wait at least 6 months before applying for credit.

tutington_2

The_Boss wrote: »

You don't have a credit score just for your information.

But you are right that lenders would likely not score you so positively immediately after the move as your circumstances have just changed massively, you've not lived there long and are not likely registered as on the electoral roll there yet. Probably best to wait at least 6 months before applying for credit.

Actually that's not always the case. I asked for a credit card a couple of weeks after completion and was accepted. The 'home owner' status improves your credit rating, as it puts you in a lower risk category in the eyes of any lender.