Applying for credit card after loan

looloo12

Hiya, I've recently taken out a loan with Wickes for a new kitchen, I was hoping to apply for a credit card for other home improvements, does anyone have any advice on what my chances are? Are loans and credit cards treated in the same way on your credit score? The last time I applied for a credit card was March last year.

Thanks for a any help you can give me

grumbler

looloo12 wrote: »

Hiya, I've recently taken out a loan with Wickes for a new kitchen, I was hoping to apply for a credit card for other home improvements, does anyone have any advice on what my chances are?

Do you really think that anyone can tell you based on the information you posted?

Are loans and credit cards treated in the same way on your credit score?

If there is any difference, then it's not significant.
Effects of a new loan/CC:

• credit search in your credit files,
• increased total amount of credit available,
• increased total amount of credit used,
• increased used/available ratio,
• increased available/income ratio.

All effects are obviously negative, bet without knowing the actual ratios nobody can even hazard a guess. Short time at the new address works against you too.


There are 'soft' eligibility checkers in MSE articles and on many CC websites.

Consumerist

As above but you may be asked about any loans you already have as part of your card application. The loan repayments will also affect your monthly outgoings you usually have to report in the application process.

Edit
Forgot to mention that the loan will also appear on your credit file, in due course, which the card company would then see in their search.

Anthorn

I refer to my own personal experience here: To cut a very long story over 7 years short, I was trying every 6 months or so to get a prime credit card, any prime credit card but couldn't get one. I've closed more than a few cards, a mobile phone contract and a few catalogue accounts all of which became "settled" on my credit history but to no effect. The turning point was when I paid off a very small personal loan and it became "settled" on my credit history: My credit score which I usually only regard as nothing more than mildly entertaining on Noddle shot up to 5/5 and I was approved for an MBNA card at 11.9% APR. I have now taken out another small loan which I will clear very quickly to see what effect that has. I'm going for AMEX next.

So based on my own personal experience the difference between a loan and a credit card is the effect on a credit history when it's settled.

Other than the above I don't see any evidence to suggest that to lenders a credit card is any different to a loan and vice versa other than the effect on what lenders may regard as the maximum overall allowable credit related to income.


**If doing the settled personal loan bit be sure to check to see whether you'll be penalised if you pay it off early. Most do penalise but some don't.