Impact of Stoozing on my credit file/credit worthiness?

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I have recently opened two new credit cards, one 0% balance transfer and one 0% purchase card.

I opened these to defer payments for purchases already made and future purchases for as long as possible so that I didn't run out of funds to fill my interest paying current accounts and regular savers. The balances on the cards are therefore matched in savings.

I have set up Direct Debits for the minimum payments so as to defer full payment for as long as possible. Previously, I have always paid my Credit Cards in full each month.

Clearly, lenders will be able to see that I have balances on my Credit Cards but will making minimum payments have any other specific impact on my ability to get further credit?

I have a mortgage and don't expect any immediate need to remortgage or apply for loans but am likely to apply for another 0% balance transfer card before my 0% purchase term runs out.
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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    I can't say making only minimum payments has affected me negatively over the years (nearly 12 years stoozing now), but I suppose I'd never know anyway. I mean, when I have been declined I've put it down to over-indebtedness. But if I'd paid more than minimum would I have got another £1K on the limit on an accepted application?...or 18.9% APR rather than 25.9% APR? Who cares anyway...I don't pay interest!

    If I was managing 'real' debt, rather than stoozing debt, I'd be making sure I paid at least a bit more than minimum payment (as little as £1 will ensure no marker). As it is, I won't suffer if I don't get another deal...I'll simply repay from the stooz pot.
  • Candyapple
    Candyapple Posts: 3,384 Forumite
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    Pretty much the same as YB. On your credit file under each credit card it will show that the card is on a promotional deal so minimum payments shouldn’t make any difference. Your credit history will only suffer a temporary ‘hit’ so to speak for 6 months or so whilst the repayment schedule and your management of each new account is showing and then shouldn’t make any real difference when it comes to applying for a new deal(s) in future.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
  • Superscrooge
    Superscrooge Posts: 1,171 Forumite
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    Making minimum payments month after month, when you are paying the standard high interest rates on credit cards suggests you have as much, or possibly more, debt than you can handle. Who would willingly pay interest at 39.9% APR?

    However I agree with previous comments - Minimum payments on 0% cards is almost expected. I have been making minimum payments on various 0% cards for years and still able to obtain further credit.

    The only thing I have noticed as I have stoozed ever greater amounts, is that credit card providers have scaled back my credit limits. I used to get initial credit limits of £5,000 - £10,000 but my last two cards only offered limits of £1500 - £2000
  • TheShape
    TheShape Posts: 1,781 Forumite
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    This is all good to know especially as I've just come to the realisation that I should be able to Stooz next year's Council Tax as the fee to pay by Credit Card is lower than the discount for paying up front.
  • Ben8282
    Ben8282 Posts: 4,821 Forumite
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    There has been much discussion on the subject of the effect of minimum payments on 0% cards.
    As paying a small extra amount each month will not cause me financial hardship and can do no harm, I prefer to take the safe approach and pay just that little bit more in order to avoid the marker.
  • [Deleted User]
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    But if you have the following markers, would that be worse than just paying the minimum??

    Promo balance - Y
    Minimum Payment - N
    Actual Payment amount - small % of balance

    Could that suggest to lenders that you actually *don't* want to pay just the minimum (as flag is N) so you are paying more.... but as you're only paying a small percentage, you can't afford to pay the lot off???

    All if's and buts, but something I've always wondered!

    Also promo rate doesn't necessarily equal 0% interest - I had a Life of Balance 9.9% deal a few years ago which showed as a promo rate on my file.

    Interesting to see people's experience. Even if it is still a good 12 months before I have any chance of getting a 0% card!
  • Golfish
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    Last year I opened six high interest current accounts in quick succession and this affected my credit rating to the point I couldn't get anymore accounts or credit cards even though I had £20,000+ in these accounts, having previously had an exemplary credit history ie never ever missed a single payment I found this hard to accept.


    All my credit cards are now paid off after the 12m interest free period and I'm left with a nice pot to start again with, the question is as follows:
    Should I close all the older credit cards down as my available credit limit is about £25000 and would this stop me been offered newer longer period 0% cards.
  • [Deleted User]
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    It might not stop you getting new cards, even longer length ones - but it will affect what limit you are offered.

    Not sure of your income, but £25k available credit is fairly high - you might want to cull a few but almost certainly not 'all' - you may get some retention deals/offers to try and make you use them again (cheap 'life of balance' deals, new 0% offers etc).

    On the other hand, cards you keep mean you often can't qualify as a 'new customer' if you want a new deal, which may trip you up in future.

    Have a look at http://www.moneysavingexpert.com/credit-cards/cancel-unused-cards

    You could also try an eligibility checker (e.g. MSE or Clearscore) based on your credit file as it stands. Assess how you stand with regards to the % chance of getting the cards you want. Possibly close a couple, wait a few months for your records to update and try again - you should see some improvement.

    Generally speaking, the higher % chance, the higher your limit should be if you are approved - but it's no guarantee
  • MallyGirl
    MallyGirl Posts: 6,671 Senior Ambassador
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    Golfish wrote: »
    Should I close all the older credit cards down as my available credit limit is about £25000 and would this stop me been offered newer longer period 0% cards.

    I always close them as soon as I have paid them off after a deal. Some require a period before you can be counted as a new customer again so no point in hanging on to them e.g. Tesco needs a 6 month gap after closure I seem to remember.
    The exception might be Barclaycard. I might keep this after I pay it off as it has a very high limit and regularly offers deals to existing customers.
    I’m a Forum Ambassador and I support the Forum Team on the Pensions, Annuities & Retirement Planning, Loans
    & Credit Cards boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com.
    All views are my own and not the official line of MoneySavingExpert.
  • Golfish
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    Thanks for the above replies, my credit rating started to rise again to over 800 with Experian, I then paid of the £8000 stoozed on my Barclaycard, switched out both my Halifax and Lloyds accounts to Nationwide Flex Direct accounts and low and behold the following month my rating dropped to poor, with no mortgage and £20k+ in my better high interest current accounts, why does my rating drop so much each time with only £4k left on credit cards and never ever ever missing a single payment on anything.....Help please
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