Credit Rateing To Many Applies?

chadm20

Each time I take out a credit card I let it run for its 0% interest free. After which I either pay off the card or transfer the balance and close the account down. Can someone tell me if this is going to effect my balance rating? And if so is it good or bad? I am looking forward to taking out a mortgage in a couple of years time and don't want anything to effect by credit score.

Would it be best to pay off the whole balance rather than transfer the balance?

bigadaj

I'd ensure I had two cards, one used for everyday spending, which is paid off in full very month, and the other for balance transfers. In fact a third might be useful as you always want a back up. Too many applications might hurt your credit file, so ensure you don't continually apply for credit card, maybe don't exceed an application every six months or so.

I'd be tempted to clear the balance transfer in full maybe a year before a mortgage application, nothing is certain and this may cause you no problems but I'd be happier being safe with such a major purchase and the benefits of snoozing being so low with current savings rates.

jonesMUFCforever

I too leave one card left open.
I have one for normal day to day spending with cashback - one for expenses where I think I might not be able to pay back in full each month and one for balance transfers.

fozmcfc

For me 4 cards.

1/ A card which I spend on that gives me money off vouchers and I pay it off in full each month (M&S)

2/ A card, that offers regular repeat balance and money transfer offers (MBNA)

3/ My own banks card, which is rarely used, but paid off when used in full each month, it's my longest credit agreement (Natwest)

4/ Each time the 0% for purchase card, runs out, then I get a new card, with 0% on purchases. I make large purchases on this card at the beginning, that I'm not going to clear, within a month, But again always clear within the 0% period.

Any cards that do run out of 0% offers and don't give repeat offers on I just close down or more often the companies close them down for non use.

chadm20

Thanks guys. More happy now. I have the money to pay off the cards so think I may start to pay them off and then do the same after the morgage. I think there is going to be a lot of spending with a new house :eek: