Barclaycard Early Repayments

Herbalus

datlex wrote: »

Not true. You would only show a zero balance if you had paid off everything prior to the day the bill is generated. You can borrow and pay off numerous times within that time, it then appears you have a low usage ratio.

That's what he's doing.

OP, unless I have reason to otherwise, I always leave the balance to be paid via a direct debit because, in addition to the credit record that others have mentioned, I earn interest on the money while it sits in my current account waiting to be collected. That's an average of about 40 days interest at 3% on everything I spend. Little things help.

Rosco32

Good advice there Herbalus, thank you.

Monkeyballs

Hi Rosco,

You may be minted for all I know so apologies if I sound rude in saying this but why do you have a credit card with an £8k limit?

I was under the impression that having excessive credit available to you (even if you're not using it) can have a negative impact purely because any future creditors might look and see that you already have X amount of credit available already?

Anyone feel free to step in and correct if I'm wrong or not fully understanding this

Thanks!

MB

Rosco32

Monkeyballs wrote: »

Hi Rosco,

You may be minted for all I know so apologies if I sound rude in saying this but why do you have a credit card with an £8k limit?

I was under the impression that having excessive credit available to you (even if you're not using it) can have a negative impact purely because any future creditors might look and see that you already have X amount of credit available already?

Anyone feel free to step in and correct if I'm wrong or not fully understanding this

Thanks!

MB

Hi MB, certainly not minted but I do have a good job that pays me just shy of £53k per annum. I guess the BC has had the limit upped over the years and I've never done anything about it. My Experian report says its a good thing as the value of my highest credit limit indicates a lower risk, I presume as BC are willing to give me an £8k limit, however I know not everything Experian tells us is worth the paper its written on. I see you point. However in July 2013 I had the BC plus an MBNA/Virgin card which had a limit of £8,200! As the balance transfer offer was almost up I switched to Tesco and they gave me a £7,100 limit. The MBNA account has obviously been cancelled and I can see that on my credit report. At the moment according to Experian I am using 22% of my available credit and my total outstanding debt is £8253, of which approximately £4k was a car loan I took out just over two years ago. Maybe I should reduce the limit on the BC?

Herbalus

Rosco32 wrote: »

Maybe I should reduce the limit on the BC?

I'd leave it. Reduction of a credit limit isn't necessarily seen as a responsible step by the cardholder - other credit providers won't know who reduced the limit so may view it as your existing provider reducing your limit to minimise risk.

In reality, nobody really knows what other lenders will think when you apply, so I'd leave it and not worry about it.