property blacklisted

sjh101

I have just got a credit card (for my personal use) not our joint accounts house use. Its to pay off a camera I bought and a lads weekend away.

As far as im aware we only have one (possibly 2) credit card (s) thats our joint responsibility not with massive amounts to pay. Say about £3000. However, we have about 5 or 6 deals on finance where direct debits go out. As well as mobile phone deals.plus a mortgage. These are all easily taken care of and we have never missed a payment or anything like that.

So my wife got quite annoyed to find out I'd gone and got this new credit card ( which I'm going to pay off with my own money, not the joint) as she says it will go against our house rather than just my name?

Surely it won't make any difference if its paid off every month (minimum)

Does the address get black listed if you have too many credit cards and finance deals?

So to briefly sum up, with the 1 or 2 credit cards (totalling £3000 approx) we have and 5 or 6 finance deals, 3 mobile phone contracts and a mortgage........( which as mentioned above all have never missed payment on, and some end soon) would my applying and getting a credit card make a huge difference to our credit rating?

Am I right in saying it doesnt matter how many credit cards and finance deals you have (within reason) so long as there all paid when they should be?
Basically she doesn't want our property to get blacklisted with so many credit cards and finance deals being used!!

As a matter of interest also, can an address get black listed if you are using your arranged overdraft in a bank?

skylight

Credit is personal so it won't be listed against the house.

However, if your finances are joint then your credit is linked, so it could affect her.

nicp60

Hi there,
People have credit histories, not properties. So your new credit card will show up on your own personal credit report, although if you have any credit in joint names with your wife, then they probably did a search on her too.
Although even if you were to default on it, then it wouldn't show up on her record.
You are probably linked to each other through whatever joint financial products you have together, but the property wouldn't even come into it.

Every time you apply for credit (whether successful or not), it shows up on your report. Several applications in a short space of time will often look like you're in financial difficulty and would put some lenders off. Also your total available credit shouldn't be excessive - 50% of your annual salary is about the max before you might start getting turned down for credit because of affordability.
Hope this helps.

nicp60

Oh, forgot to add - there's no such thing as a blacklist.

izools

Seem pretty much everything has been covered except your comment about "Paying it off every month (minimum)".

Paying only the minimum isn't paying it off, it's paying next to nothing towards the debt. It will take an incredibly long time to clear and will also show on your credit file that you're only paying the minimum, which can be interpreted by some lenders as a negative factor - a sign that you can't really afford to pay the debt.

It should be paid in full each month, especially considering all the other lines of credit you have already, save debt spiraling out of control.

So long as you keep the balance on the card low compared to the limit (e.g. 60-70% of the credit limit still left to use at all times) the card might have a positive effect on your credit rating, except for the fact that until the account is six months old creditors will be weary of lending you more - accumulating new accounts over a short space of time looks like desperation too.

Good luck! :beer: