stoozing

markharriers

Hi all

I have just opened a Santander 123 account i have a decent amount of money i have read all the pros and cons im very good with my money and i wanted some of you kind peoples advice on stoozing.

I have just received my 23 month in interest free credit card from Santander 0 percent balance transfer and cash back on spending.

My main question is my limit on the card is £4600 which is a little low but the thing on my mind is if i go high say get another card or try and higher limit on this one will it effect my ability for credit? i.e if i go for a mobile phone contract ect.I would very much appreciate your knowledge on this just to iron the fine wrinkles i am curious of.

Biggles

Try posting on the Stoozing forum, http://forums.moneysavingexpert.com/forumdisplay.php?f=95

InsideInsurance

markharriers wrote: »

the thing on my mind is if i go high say get another card or try and higher limit on this one will it effect my ability for credit? i.e if i go for a mobile phone contract ect.I would very much appreciate your knowledge on this just to iron the fine wrinkles i am curious of.

Yes it'll impact it because the data from the CRAs will be different.

Now if it will impact it positively or negatively is more difficult to say as on the one hand lenders like seeing others offering you higher limits so getting the card limit increased helps there however on the flip side their affordability checks will consider if you max out the card and so the higher limit makes these possibly harder to pass depending on your salary/ income

markharriers

InsideInsurance wrote: »

Yes it'll impact it because the data from the CRAs will be different.

Now if it will impact it positively or negatively is more difficult to say as on the one hand lenders like seeing others offering you higher limits so getting the card limit increased helps there however on the flip side their affordability checks will consider if you max out the card and so the higher limit makes these possibly harder to pass depending on your salary/ income

Understandable theres no right or wrong i understand that. Did not no whether to go for a separate card to keep a sensible amount on 2 cards or just stick to one and have a high amount or is this just the same difference.

What you you advise on how to get the spending up i no to use card for all usual spending did not no whether i could make mortgage payments with card to speed things up.

thanks for your help by the way

InsideInsurance

Broadly speaking for credit rating purposes its better to have 1 card with a high limit than two cards with a moderate limit. If you can achieve that is another question.

Just pay everything you can by credit card whilst be careful for any company that charges fees/ you lose a discount which you'd have gotten with another payment method. Depending what net rate of return you are getting from your savings you can easily wipe out any benefit by having to pay a 2.5% card processing fee or losing a 5% DD discount

markharriers

InsideInsurance wrote: »

Broadly speaking for credit rating purposes its better to have 1 card with a high limit than two cards with a moderate limit. If you can achieve that is another question.

Just pay everything you can by credit card whilst be careful for any company that charges fees/ you lose a discount which you'd have gotten with another payment method. Depending what net rate of return you are getting from your savings you can easily wipe out any benefit by having to pay a 2.5% card processing fee or losing a 5% DD discount

i am currently getting 3% return before tax with santander so very good i think. I agree i will use card for all i can without loosing discount many thanks for your help

eskbanker

markharriers wrote: »

My main question is my limit on the card is £4600 which is a little low but the thing on my mind is if i go high say get another card or try and higher limit on this one will it effect my ability for credit?

It's a bit of a moot point asking about increasing the limit on the Santander card - if you've only just opened it then it's very unlikely they'd consider increasing the limit anyway....

gelberto

Broadly speaking for credit rating purposes its better to have 1 card with a high limit than two cards with a moderate limit. If you can achieve that is another question.

Just pay everything you can by credit card whilst be careful for any company that charges fees/ you lose a discount which you'd have gotten with another payment method. Depending what net rate of return you are getting from your savings you can easily wipe out any benefit by having to pay a 2.5% card processing fee or losing a 5% DD discount

Gentoo365

Interest rates on savings accounts are really low at the moment. So even if you could figure out a method of turning a 0% offer into cash the rewards will be minimal.

You would probably make more money just by trying to route as much as possible from your normal spending though the card, such that you get cashback. Then pay off in full.

Unless you have some sort of big purchase you need to spread over time. e.g. a season ticket or something.

markharriers

Gentoo365 wrote: »

Interest rates on savings accounts are really low at the moment. So even if you could figure out a method of turning a 0% offer into cash the rewards will be minimal.

You would probably make more money just by trying to route as much as possible from your normal spending though the card, such that you get cashback. Then pay off in full.

Unless you have some sort of big purchase you need to spread over time. e.g. a season ticket or something.

Best of both worlds i get cashback aswell!!

Kendall80

Would it not make more sense to go for one (or more) of the 5% int. current account offerings?