Credit Rating ruined???

jamesd

It is less likely to affect a personal loan or mortgage advance than another credit card application. In the relatively unlikely event that an application is declined with this card given as the reason, explaining the situation should resolve it.

Assuming no statement has been received yet, all that would show on a credit report is an application for credit for a revolving credit card of unknown type (could be store or standard card), without much chance of the credit limit even being visible. If she does want to do more, she can ask the card issuer to set the credit limit to say a couple of thousand Pounds before reporting to the credit reference agencies. That way the credit limit history may never even show the higher limit. A couple of thousand because a few hundred from a mainstream card might prompt someone to wonder why the limit is so low.

Mostly, though, this is not something that should be causing much worry unless she has a lot of recent applications. The odd one or two a year isn't a big deal.

WaveyDavey13

Thanks for putting our minds at rest.




Cheers

Dave.

The_Boss

WaveyDavey13 wrote: »

Thanks for the replies.

The issues we were worried about were any possible detriment in credit rating having been issued this card with such a high credit rating which wasn't what was expected. As I said originally my wife was under the impression it would be a card that could ONLY be used in Debenhams stores rather than a normal mastercard. She asked this at the time and was told that it was just a store card and not a credit card.

She has been back in store today and staff asked straight away if she had been shown the relevant info leaflet for the card which clearly shows it to be a credit card. The sales assistant who originally served my wife never showed or gave my wife this leaflet and this issue has been raised to the store manager and Debenhams themselves have asked us to put all the details of this case in writing to them so they can investigate our case further.

The reason we were asking about credit rating etc... is that we are possibly in the near future looking at borrowing some money to extend our home and were worried this may affect any such application etc....


I hope that makes sense.





Cheers

Dave.

Your wife doesn't have a 'credit rating' though so I don't get how you can keep talking about it or describe it as high.

Cycrow

as far as the credit file goes, theres no real difference between a store card and a credit card.

so the only difference here would be the limit. However, store cards can have high limits as well.

The only negative here would be the amount of available credit, which could limit you getting more, but this is easily fixed by reducing the credit limit of the card

jimjames

janiebquick wrote: »

I am at a complete loss to understand why you think that being given a credit card with a large credit limit would badly affect anyone's credit score

If anything it would have the opposite effect. High amounts of credit available not being used seems to be a positive factor for credit scoring.

gb12345

jimjames wrote: »

If anything it would have the opposite effect. High amounts of credit available not being used seems to be a positive factor for credit scoring.

That depends on the individual lender doing the scoring - some may see the availability of a lot of credit as a risk (what if that available credit is suddenly all used).

There is a fine line between having too much available credit and the ratio between available and used credit.

Maestro.

gb12345 wrote: »

That depends on the individual lender doing the scoring - some may see the availability of a lot of credit as a risk (what if that available credit is suddenly all used).

There is a fine line between having too much available credit and the ratio between available and used credit.

... and not to forget everyone on here is an expert in credit scoring...