Getting the hang of cards and stoozing pots.

thebananapimp

Two quick questions:

1. With your first credit card is it best to pay off in full or just the minimum of your aim is to build up your credit rating?

2. After getting the hang of paying off your first card is it worth applying for a 25 month 0% card in order to start a slow but sure stoozing pot?

Please pardon the ignorance .

[Deleted User]

1 Full
2 could be, but you will need a fairly decent history

thebananapimp

Deleted_User wrote: »

2 could be, but you will need a fairly decent history

Let's say that I got the card. What advice is out there for turning that credit limit into a stoozing pot?

Is the general consensus to use it for a couple of months for everything you buy, and then max out the limit and pay off the minimum each month - meanwhile putting the equivalent amount in a saver?

[Deleted User]

Well, that's how it works yes. You run up a debt at 0% on the card, and keep your own cash earning interest, until the end of the promo.

thebananapimp

How do you build up a pot of £5,000 or higher? Do you request larger limits or are you automatically given them over time?

[Deleted User]

They'll generally be automated. Some companies may entertain requests, but you'll need a decent period of managing the card well.

Some companies will give more generous limits than others.

thebananapimp

Would it be possible to build up a limit of £6000 over 2 cards over a couple of years?

MallyGirl

Whether you could would totally depend on your credit history, salary, other debt, commitments .....
But certainly it can be done with the right answers to the above points

thebananapimp

Last question - How might a stoozing pot of £6000 over 2 cards affect my credit rating over time?

If I wanted to get a mortgage in the next 5 years would it be poor planning to start stoozing?

Thanks for the help so far!

MallyGirl

as long as you set DD to pay the minimum it will show correctly managed accounts which is a positive. Just make sure you pay them off before applying for a mortgage.

JimmyTheWig

thebananapimp wrote: »

Last question - How might a stoozing pot of £6000 over 2 cards affect my credit rating over time?

If I wanted to get a mortgage in the next 5 years would it be poor planning to start stoozing?

My opinion is that Stoozing in the past improves your credit history.
It shows that you can take on debt, often at high levels, and repay it on time. That's exactly what a mortgage company would be looking for on a credit report.

However, Stoozing at the time of a mortgage application would generally be a bad thing. The mortgage company would see that you have credit card debts and reduce your offer accordingly. They won't care if it's at 0% and you've got the debt covered in savings.
So plan to close down your Stooz pots before a mortgage application.