How long until I look good to lenders

sean9461

I know it may be hard to answer this question but I could just use some general figures if possible.

I have only just started to build credit. Prior to 6 months ago I didn't even have a bank account on my credit report.

I currently have a Barclaycard initial and a capital one 4 months old each that I pay off in full each month. However extremely low credit limits of 150 and 200.

I have applied for a mortgage first time buy and hopefully it's all accepted subject to valuation.

However I'm just wondering how many months or even years of credit history do lenders usually expect before I start being able to get these good 0% credit cards with credit limits upwards of 4000?

I just like the idea of being able to buy things for the house eg furniture etc and pay 0% on it and pay it off as fast or as slow as I like.

So far the mortgage process has been extremely difficult with so little history but I'm hoping being a home owner will give me some sort of advantage.

Any opinions on anything else I can do to increase my history would be great

Thanks

Gaz83

sean9461 wrote: »

However I'm just wondering how many months or even years of credit history do lenders usually expect before I start being able to get these good 0% credit cards with credit limits upwards of 4000?

I just like the idea of being able to buy things for the house eg furniture etc and pay 0% on it and pay it off as fast or as slow as I like.

... that's not really how those credit cards work.

sean9461

Gaz83 wrote: »

... that's not really how those credit cards work.

What am I missing?

You purchase something for £ and you pay 0 interest?

chuckley

so how have you been saving for a mortgage? got your wages? NO bank history at all?

I'm just perplexed on how you've saved a deposit but have no history... unless it was a gift/inheritance of course.

sean9461

chuckley wrote: »

so how have you been saving for a mortgage? got your wages? NO bank history at all?

I'm just perplexed on how you've saved a deposit but have no history... unless it was a gift/inheritance of course.

Saved deposit from my wages. However my bank account that I started with at 17 was never upgraded and never shared info to credit reference agencies and I'm currently only 22. I changed banks 6 months ago to an account that does share data

ParaJon

sean9461 wrote: »

What am I missing?

You purchase something for £ and you pay 0 interest?

Generally your credit file isnt the only major factor with credit cards.

Salary is one of the main deciders of Credit Limits.

Some Card providers you will be eligible for 0% cards within 6-12 months of using your current card.

Ideally though try and pay off your current cards each month in full, this will assist a positive credit history.

These 0% cards you desire though, CAN BE DANGEROUS especially if you dont know the risks. alot of people think "i'll worry about that when the 0% is up" and that day comes very fast, ONLY use the 0% offers when you have a plan of repayment or you really need it, Because after you get the new customer 0% offer, you never get one quite as good.

sean9461

ParaJon wrote: »

Generally your credit file isnt the only major factor with credit cards.

Salary is one of the main deciders of Credit Limits.

Some Card providers you will be eligible for 0% cards within 6-12 months of using your current card.

Ideally though try and pay off your current cards each month in full, this will assist a positive credit history.

These 0% cards you desire though, CAN BE DANGEROUS especially if you dont know the risks. alot of people think "i'll worry about that when the 0% is up" and that day comes very fast, ONLY use the 0% offers when you have a plan of repayment or you really need it, Because after you get the new customer 0% offer, you never get one quite as good.

I understand the way it works and the reason it appeals to me is because I don't ever want to pay interest on anything I will try and get away with not paying interest wherever I can. So ill always make sure it's paid off before end. Only case I'll have to pay interest in my life hopefully will be on a mortgage.

I currently earn 25000 would that be too low for credit limits of say 5000?

Thanks

ParaJon

£25,000 is more than comfortable for a £5,000 Limit. DEPENDING on the Lender.

Some Lenders start you low & increase it "for you" every few months.

Barclays tend to get higher credit limits on their Visa credit cards. and bombard you with 0% offers on money transfer & balance transfers every 2-3 months. But their app is very easy to use and pay off.

sean9461

ParaJon wrote: »

£25,000 is more than comfortable for a £5,000 Limit. DEPENDING on the Lender.

Some Lenders start you low & increase it "for you" every few months.

Barclays tend to get higher credit limits on their Visa credit cards. and bombard you with 0% offers on money transfer & balance transfers every 2-3 months. But their app is very easy to use and pay off.

I have a Barclay card initial. It will be 6 months old in 2 months and had balances always paid in full no more than 40% utilisation on 150 credit limit.

What's the chances of a good increase in limit soon?

Also do you know if it's possible to eventually have a Barclaycard platinum as well as the initial?

Thanks

Gaz83

Gaz83 wrote: »

... that's not really how those credit cards work.

You don't pay it off "as fast or as slow" as you like.

You have minimum payments to make, even if they aren't charging you interest, and interest-free periods don't last forever.

downhillfast

I can't offer any more advice than has already been pointed out other than to say whatever you do DO NOT apply for any credit cards whilst you are involved in obtaining a mortgage - if your lender sees you extending yourself they could withdraw the mortgage offer and leave you high and dry!