Correlation between existing customer BT offers and general credit worthiness

Ben8282

To what extent can the 0% period being offered for existing customer balance transfers be regarded as an indication of general credit rating/credit worthiness? Is it, for example, a better indicator than the scores produced by the credit reference agencies?
In determining the period to be offered do lenders take into account only the conduct of the account in question or do they constantly monitor credit reports and take them into consideration when determining the offer?

[Deleted User]

Generally, it's more a reflection of your management of that account. Some lenders will also take a look at your file, to ensure you're not tripping over elsewhere.

planteria

i would say very little, and agree with zx81.
if you operate well with MBNA, for example, they are likely to look after you nicely.. but at the same time, anyone sensible does their best to handle all of their credit lines properly.

Superscrooge

Ben8282 wrote: »

To what extent can the 0% period being offered for existing customer balance transfers be regarded as an indication of general credit rating/credit worthiness? Is it, for example, a better indicator than the scores produced by the credit reference agencies?
In determining the period to be offered do lenders take into account only the conduct of the account in question or do they constantly monitor credit reports and take them into consideration when determining the offer?

In my experience the offers made to existing customers are based on the conduct of that particular account.

Like many customers I have just had the latest offers from Tesco CC. Barclaycard also give me regular offers every few months. But neither conduct a fresh credit search. They just look at how you operate their account.

SnowTiger

Superscrooge wrote: »

Like many customers I have just had the latest offers from Tesco CC. Barclaycard also give me regular offers every few months. But neither conduct a fresh credit search. They just look at how you operate their account.

Don't card providers receive regular information from CRA without having for perform an actual search?

YorkshireBoy

SnowTiger wrote: »

Don't card providers receive regular information from CRA without having for perform an actual search?

Yes they do...the so-called "monthly feed", which will contain, amongst other things, CII and CATO data.


Consumer Indebtedness Index
Current Account TurnOver

Superscrooge

YorkshireBoy wrote: »

Yes they do...the so-called "monthly feed", which will contain, amongst other things, CII and CATO data.


Consumer Indebtedness Index
Current Account TurnOver

Thanks. I had assumed they had to record a search to obtain info from a credit file.

I hadn't heard of the 'monthly feed'.

planteria

nor had i
CATO could be pushed up artificially if helpful:)