Credit Card Balance

w00519772

I have a credit card, which offers interest free credit on balances of up to £1500. This is currently maxed out.
I could easily pay it off, however I get 3% on my current account (about 2.4% after tax). On that basis I am gaining:
(2.4/100)*1500=£36
Therefore I get about £36 extra in my current account in a year as a result of doing this.
Are there any negative implications of doing this? e.g. credit score.

genetic

w00519772 wrote: »

I have a credit card, which offers interest free credit on balances of up to £1500. This is currently maxed out.
I could easily pay it off, however I get 3% on my current account (about 2.4% after tax). On that basis I am gaining:
(2.4/100)*1500=£36
Therefore I get about £36 extra in my current account in a year as a result of doing this.
Are there any negative implications of doing this? e.g. credit score.

Credit agencies report the % of your credit that is used. If this is your only credit card, your use would be 100% and potential lenders could see this as a red flag.

w00519772

genetic wrote: »

Credit agencies report the % of your credit that is used. If this is your only credit card, your use would be 100% and potential lenders could see this as a red flag.

What percentage is advisable. As stated I could pay it all off.

rehanmalik3030

w00519772 wrote: »

What percentage is advisable. As stated I could pay it all off.

If there is a high variability in the utilization of your credit for example some months you use say 5 or 10% or your credit limit and other months you use 80 or 90% of your credit limit. Then this shows that your household finances are erratic.

If you credit utilization is always above 90% then that shows you are living off credit.

Stick within a certain range say 10 to 30% do not go under and do not go over and as always stick to purchases and pay it off in full each month.

w00519772

rehanmalik3030 wrote: »

If there is a high variability in the utilization of your credit for example some months you use say 5 or 10% or your credit limit and other months you use 80 or 90% of your credit limit. Then this shows that your household finances are erratic.

If you credit utilization is always above 90% then that shows you are living off credit.

Stick within a certain range say 10 to 30% do not go under and do not go over and as always stick to purchases and pay it off in full each month.

There is never a range. It is always between £1300 and £1500. I have opened a few new current accounts recently with no problems.

How much would you pay off and maintain at?

w00519772

Is it worth me getting my credit report to see how this has affected me. I have already had a free month with Experian in June 2014.

YorkshireBoy

w00519772 wrote: »

Is it worth me getting my credit report to see how this has affected me.

I wouldn't bother personally. It is what it is. And it'll only be Experian's opinion anyway, which will probably bear no resemblance to what lenders will think.

w00519772

Apparently it is called stoozing: http://www.moneysavingexpert.com/credit-cards/stooze-cash-credit-cards

w00519772

Does anyone else stooze and what impact does it have on your credit rating?

saver861

Been stoozing for years and years and done very well out of it last time 0% was around in the 90's

It depends on what you need going forward. If you are intending to apply for a mortgage etc then you need to show responsibility. Get another credit card, use that and pay it off every month. That shows you are not maxing your credit and are responsible.

Otherwise, enjoy the 3% at the generosity of the 0% credit card - however, ensure you pay it off before the deadline or you will find you have lost the whole year's interest in one months CC interest!

w00519772

saver861 wrote: »

Been stoozing for years and years and done very well out of it last time 0% was around in the 90's

It depends on what you need going forward. If you are intending to apply for a mortgage etc then you need to show responsibility. Get another credit card, use that and pay it off every month. That shows you are not maxing your credit and are responsible.

Otherwise, enjoy the 3% at the generosity of the 0% credit card - however, ensure you pay it off before the deadline or you will find you have lost the whole year's interest in one months CC interest!

What impact does it have on your credit rating. I got a mortgage in July 2014. My credit score was the maximum i.e. 999. What is it likely to be now as I have been maxing my credit card for 12 months?


I am thinking about getting my credit report. I already had the 30 day trial with Experian (when I got my mortgage). Do you think it is worth checking my credit rating with Equifax (they have a 30 day free period as well).