What are we aiming for?

dylanl73

I'm sure this will have been covered before somewhere on the forum but I just can't find it in the search.

Ok, so basically what i'm asking is, we build our credit reports up for better deals in the market and more affordable options of credit. But what is the top line we can achieve?

For example, I built my credit history up, like everyone, from having no credit, then a high interest credit card and now last week got a credit card with 15 months 0% balance transfer, and a lower rate of 18.9% on purchases, and i'm sure i still have a long way to go, but its considerably better than the 34.9% capital one card i started with!

I also had a loan which my bank sent me an offer at representative 9% apr but I actually got it at 25.9% apr (something which i didn't realised until a few months in)! Lesson learned, but what (in your opinion) would be a good rate to you?

I would be happy to get 9% apr on a loan, but is that considered high to you? The 18.9% card I got is a good rate (for now) to me, but i'm sure some of the better 'scoring' users on here have much lower rates.

I'm rambling now so sorry, but I guess what i'm asking is, what is the lowest rates on cards and loans you have achieved?

Thrugelmir

What are we aiming for?

Demonstrating an ability to handle credit doesn't require anything particular. Other to borrow and repay in full.

Tixy

The rates people are offered will be based on far more than their credit file history.

Having a good credit history and demonstrating a responsible use of credit will help you get accepted for better rates. But for people to get the very best rates lenders offer they'll need more than a good credit history.

Ideally you'd be aiming to be offered products at the representative rates lenders advertise.

NorthernMonkey1

My last loan was £7000 over 30 months at 3.9%. I used it to buy a car and paid it off 6 months early.

I worked to clear all my debt and sort my credit rating to apply for a mortgage.

MisterBaxter

Loan rates will very often be linked to the amounts being borrowed or in some cases the purpose for which you want the loan, car for example. The advertised rates will generally reduce as the loan gets larger so the 25.9% may have been the correct rate for the amount borrowed whereas the 9% rate being advertised was for a higher loan value. A lot of advertising for loans show the 'FROM x%' but when you look that rate is for the maximum loan amounts.

I have been through the same process and have picked up cards at the advertised headline rate. I was surprised at how quickly I went from having nothing but a current account with no overdraft and a mortgage account on my credit file to being able to get prime credit cards at the headline rate. After a year and a bit of having a Vanquis card I was able to get prime cards at the headline rate so it doesn't take long provided you keep on top of things.

If you pay of cards in full each statement the interest rate is academic in any case and the credit limits offered will also be linked to salary.

harry457

I do not have much better then your rate.
yes i think it is high 9% apr on a loan.

rockm87

Is this because you need cheaper forms of credit?

can you not just pay off your debt, and not use credit in future?

dylanl73

No, not really, this is just something I was wondering.

I'm unsure whether I will apply for anymore credit (accept a mortgage) but I just was interested in seeing examples of what other people have been offered.

As for not using it in the future, I think as long as you aren't spending above your limit, its fine. I know what I can afford and not afford, so I wouldn't take on something that would make life hard.

But say I wanted to buy something for work, or had an emergency e.g. car trouble or something, Its nice (for me, anyway) to know that I have some way to pay for it. If it means paying monthly for it, I don't mind.

I guess it just depends on your mind set, I suppose.