further information about 0% credit card

YorkshireBoy

Cpu2007 wrote: »

I am asking about the possible downsides if in this hypothetical scenario I get a 10k limit, I use it instead of my savings and then I pay out at the end everything.

Can this cause any downsides? can it affect my credit score negatively even if I pay everything in full and pay all my debts back?

Yes, and no!


Yes it will affect your credit rating negatively in the short term...simply because you now have £10K of debt showing on your credit file (but surely you knew that?). And whether you earn £15K or £50K per annum, £10K debt (especially on a card with a £10K limit) is significant.


No it won't affect your credit rating negatively in the long term...because your credit files will show a settled account with a £10K limit, heavy utilisation over 17 months, and all payments made on time (and that will be seen as a positive...once it's closed).

Cpu2007

great,this is basically what I wanted to know.
I understand now that other than credit rating being affected negatively on short-term, there are no other disadvantages (if you pay everything back properly)

Obviously, during the period I have a 10k debt on a card, will mean that it will be hard for me to get loans etc.

thanks