When to apply for 0% card?

MoneyEM

I'm in the process of buying a flat and applying for a mortgage. I categorically do not want to apply for any new credit which can affect my mortgage application until the money has come through and I'm able to move in.

As I've spent most of my money on the deposit and fees, I'm looking to a long 0% card to buy a new sofa and a few other bits that I would like. How long after I move in should I look to apply? Immediately, 3 months? 6 months?

And what kind of amount can I expect to be offered on someone who earns £30k a year and has a near-perfect (experian 992) credit score? I currently already have 1 credit card with a 3k limit but I use it for everyday spending and pay off in full monthly (using about 30% of the available balance). Unfortunately it's just a cashback card with no 0% period.

[Deleted User]

I'd give it a couple of months after moving.

992 is quite a low score* but you may be lucky, as you have some credit history.

*it's not really low. But it is completely irrelevant when it comes to gauging how lenders will view you.

MoneyEM

Deleted_User wrote: »

I'd give it a couple of months after moving.

992 is quite a low score* but you may be lucky, as you have some credit history.

*it's not really low. But it is completely irrelevant when it comes to gauging how lenders will view you.

How is 992 a bad score? It's in the excellent category. I have never missed a payment, have had credit cards paid off in full every month for more than 3 years, phone contract for 6 years.... I literally don't know what I could do to improve my score...

chuckley

it's called sarcasm. the score is a made up number only you can see.

in short. nobody cares.

jamesd

Just after you move in. Your main issue will be a likely inability to pass electronic identity verification checks and you will also lack the paper documents to prove your new address.

The amounts used for credit limits vary by provider. MBNA and Virgin tend to offer quite large limits. Less than a couple of thousand isn't likely, more than ten thousand is unlikely. You can seek more than one card if the first doesn't offer as much as required.

Don't take the people who say the credit score is meaningless too seriously. It's an indication of how some parts of your credit report are likely to be viewed but it's very imperfect because different lenders can be looking for different things in their customers and it doesn't include important details like your income. More useful for trend monitoring than for one-shot things.

pathtofreedom

I'm in a similar situation. What I was going to do is wait until noddle etc show my new address as being on the electoral role, as well as my other bank accounts etc for at least a month before applying. I don't know if that's the right answer, that's just what I was planning on doing.

LuSiVe

I did mine about 10 minutes after I completed but using the old address as I didn't move for a couple of weeks (and it was a family address I was moving from so no problem with redirection of post).

dresdendave

If you are contemplating waiting six months before applying for a card, why not just save for six months and buy it outright, without going into debt? Even if you buy it on a 0% card it is still debt.

MoneyEM

dresdendave wrote: »

If you are contemplating waiting six months before applying for a card, why not just save for six months and buy it outright, without going into debt? Even if you buy it on a 0% card it is still debt.

because I am unlikely to save up 5k in 6 months, but would easily be able to pay it off over 24 months on a 0% card. I could comfortable save £500 a month. I don't really want to wait 6 months, I just want to know how the new mortgage would affect me getting any new credit agreements.

MoneyEM

LuSiVe wrote: »

I did mine about 10 minutes after I completed but using the old address as I didn't move for a couple of weeks (and it was a family address I was moving from so no problem with redirection of post).

oh right. I might not be moving in for 2 or 3 months when I get it, so would it be better to apply at the address I've been living at for 2 and a half years?

[Deleted User]

MoneyEM wrote: »

oh right. I might not be moving in for 2 or 3 months when I get it, so would it be better to apply at the address I've been living at for 2 and a half years?

As long as you are still living there when you apply (e.g. 10 minutes after completion as previous poster said, or even a month later) that's the better option in terms of 'scoring' (you've got the stability of 30 months at address, Electoral Roll verification etc).

I think many people apply using their 'old' address, then move the account over to the new address. The technicalities of it (and being careful not to end up on CIFAS/N-Hunter lists) are another (probably hypothetical) question

One problem may be what you answer for homeowner status - do you put homeowner (as you now own a home, you just aren't living in it yet), or continue to put renting/living with parents etc. If you put Homeowner, that'll flag up as your previous apps at that address have said rented or whatever.

Also the expenses you declare in theory need to go up (or down).

Slightly off topic, but I've always wondered what the chances of a credit search being performed immediately before completion are? If you're a good enough prospect for the mortgage lender to lend to, do they want to go fishing for what are potentially minor issues (1 x card application).

It would reveal if you were taking the mick or seriously in distress (e.g. 10 apps as you've lost your job), but in reality, who would do that!? If I lost my job just before mortgage completion (but thought I could still afford a mortgage) I'd be more inclined to go to friends/parents etc and get it 'off record'

I know many people 'play it safe' and won't apply until completion (and I would do exactly the same, just incase), but do lenders really go looking...???