Multiple cards

Chronicle

Hi folks,

I'm looking for some advice in regards to my credit score.

I recently signed up to CreditExpert to have a nosey at what my score was due to the recent decline in loan applications, and to my surprise it was an inch below good, yet on 'noddle' it states it is Very Poor (548) I have never really had an issue in getting credit cards or finance until recently.

At present I have credit cards with the following companies with the current balance:

- BarclayCard (£3500 owed out of £5000 limit)
- Vanquis (£900 owed out of £1500 limit)
- Santander (£1000 available)
- Aqua (£2500 available)
- Capital One (£1750 available)

I also have car finance and a Barclay's loan (£2k), I pay all bills on time without any hassle or late payments. Recently I have attempted to get another loan to pay off my two credit cards and also my current loan as my partner and I are looking to move out and unfortunately I keep getting knocked back with the only offers being in the circa of 49.9% APRs.

My question is, can having these credit cards go against my score? Would it be in my best interest to close the ones I do not use? I am registered to vote, working full time and as I say, all payments are made on time and I always pay above the minimum payment on credit cards. Yet, just last week I was knocked back in getting a contract phone for £8.50 per month!

I would appreciate any feedback on this.. cheers folks!

HappyMJ

Sounds like mine. I have 6 credit cards (£6,700 owed out of £27,100 limit) and 2 loans (£21,100) and a Noddle score of 575. All paid on time no late payments, arrears, defaults or CCJ's. Not on the electoral roll and I'm self employed.

I wouldn't worry too much about the score. Don't apply for credit too often. I try and space out the applications to no less than 4 months apart.

Maybe you just owe too much in relation to your income.

stclair

Does Barclaycard not have an offer available to you so you can transfer the balance from Vanquis at a cheaper rate.

20aday

It could be a case of 'too much' available credit; as posted above is it an option to transfer your Vanquis balance to your Barclaycard if there's a 0% (for a fee) transfer promotion? Or even your Santander credit card?

Chronicle

Thanks for the responses. I'm not having much luck in obtaining some form of transfer or loan. I'm going to close my Santander account on Monday, and also the Aqua (although I've had that since 2012 and have got it to £2.250!).

Just wondering what your opinions on this is?

Regards

CalumHeath

Chronicle wrote: »

Hi folks,

I'm looking for some advice in regards to my credit score.

I recently signed up to CreditExpert to have a nosey at what my score was due to the recent decline in loan applications, and to my surprise it was an inch below good, yet on 'noddle' it states it is Very Poor (548) I have never really had an issue in getting credit cards or finance until recently.

My question is, can having these credit cards go against my score?

This exacty why credit scores are completely irrelevant.

Lenders do not see your credit score and those that give credit scores (Noddle, Experian, and others) do not make lending decisions.

Lenders do, however, see your credit history which is (should be?) an accurate record of credit accounts and how you managed them, and applications for credit.

Your eligibility for any credit is not solely based on one factor (and certainly not a score or rating); any combination of the following factors might be taken into consideration by a potential lender:

- amount of existing debt
- amount of existing available credit
- history of settled accounts
- history of incurring defaults
- number of recent applications for credit
- age
- whether single, married, widowed, separated or divorced
- whether home-owner, tenant or living with parents
- whether you're on the electoral register
- current employment status
- length of time with current employer
- salary

This is by no means an exhaustive list and how each credit-provider assesses you is different; some companies may not consider many of these factors (Payday lenders), some may consider even more (mainstream lenders, mortgage providers). Certain factors may not carry any weight and some might dictate the decision-making process completely - you'll never know.

Ultimately, it's up to each company whether they want to provide credit facilities and on what terms. They have no obligation to lend to anyone nor explain or justify their lending criteria at any time. It's not based on a score or rating.

The best thing you can do is meet your existing credit repayment obligations in accordance with the terms you signed up, and planning ahead, not apply for too much credit within a small timeframe - there is no definition for "too much", it's all relative as explained above.

cakeforbrains

It could also be the amount of credit you're seeking as a ratio of your income. Even thought you are looking to consolidate with your loan, lenders will add the amount you are seeking to the debts you already have. This is because they can't guarantee that you'll pay off your existing debt with the new loan (it's nothing personal, they do this for everyone).

So that means that they're assessing you on combined debts of your cards (£4,400), your loan (£2,000), the new loan (£6,400) and whatever your car finance is. That's a total of £12,800 plus car finance.

It may just be that you've hit your borrowing ceiling.

Kim_13

What are the interest rates on those cards? Although you'd prefer a balance transfer to 0%, a balance transfer of some or all of the balance to a lower rate card is better than nothing.

I would avoid loans completely. At least when you apply for a balance transfer offer, the lender has an indication that you're not planning on running up more debt.