Next Credit Account

LupusWolf

I have a next credit account, limit is £450. I maxed it to buy new work clothes, suits, shirts etc.

It's 0% interest for six months, I'm paying it back over the next 6 months so I'm not incurred any interest and hopefully it would improve my credit rating.

However... I've read on this site Next is really bad for my credit rating and the guy on the phone said it doesn't help my credit rating, but if I don't pay it back it'll ruin my credit rating.

Please advise.

Thank you

austonic

I think you are worrying unnecessarily. The evaluations other credit card / lenders make in years to come will not give a fig about you having had a credit card from Next or any other retailer PROVIDED you paid the bills on time and didn't carry a heavy debt on long term (always owing near your credit limit). As long as you pay the card off in full before or when the 0% interest rate period ends, you will be fine.

PixelPound

I suppose as you have maxed it out then that will affect score as far as credit utilisation in the short term, but so long as you pay more than the minimum and pay it off in six months it will show you handled credit sensibly and the paying off in 6 months means you don't incur unnecessary interest. People sometimes mistakenly believe leaving money on so that they incur interest actually improves credit rating, it has no effect, its your balance and whether you only paid the minimum that is reported, not whether you had any interest added.

I don't see how a Next card would be bad, in comparison to others, unless you didn't pay or only paid the minimum each time. It's like the fallacy of credit-builder cards where people think they need a credit builder card rather than a normal credit card - both have the same affect its just that so called credit builder cards have lower acceptance thresholds so that you are more likely to get one when you have a bad credit history.

PaulW922

Next reports back like any other lender. I don't see how a positive repayment history at next could be bad for your credit rating. Ive had a Next Directory account and the linked store card for years and it has always been reflected on my credit file

A4445

I've got a next account, I use it occasionally it has a £2000 limit. Having one is not bad for your credit report as long as it's paid up correctly. I've had no issues getting other types of credit.

GingerBob_3

Don't forget though, Next have form when it comes to malicious reporting. Numerous cases have been cited on this board where Next have screwed up someone's ability to get credit, through no fault of the account holder. Credit accounts with the likes of Next and Very really should be got rid of if you don't use them.

A4445

GingerBob wrote: »

Don't forget though, Next have form when it comes to malicious reporting. Numerous cases have been cited on this board where Next have screwed up someone's ability to get credit, through no fault of the account holder. Credit accounts with the likes of Next and Very really should be got rid of if you don't use them.

What have they done to people's credit file? I've got both next and very and so far haven't had an issue. I always make my payments on time.

GingerBob_3

A4445 wrote: »

What have they done to people's credit file? I've got both next and very and so far haven't had an issue. I always make my payments on time.

Failing to report accounts to the correct person, having complex and confusing BNPL offers, being unclear about delivery charges; these come to mind immediately.


Purely on what's been posted here, Very would appear to be far and away the worst offenders.

A4445

Ahh yes the payments for BNPL can be a bit confusing as you have to allocate the payment to the correct purchase. I've used their BNPL several times and haven't had an issue.

LupusWolf

It isn't a credit card I have with Next, at checkout they opened an account for me and they gave me a £450 limit and I purchased new clothes.

The first minimum payment was £5, so I paid £5 thinking that I should pay the minimum then the second month (this month) I've paid £70 when the minimum payment was £18.

My plan is to pay this off, then close the account entirely. In the hopes they report that I have closed my account and the payments were complete.

GingerBob_3

LupusWolf wrote: »

It isn't a credit card I have with Next, at checkout they opened an account for me and they gave me a £450 limit and I purchased new clothes.

The first minimum payment was £5, so I paid £5 thinking that I should pay the minimum then the second month (this month) I've paid £70 when the minimum payment was £18.

My plan is to pay this off, then close the account entirely. In the hopes they report that I have closed my account and the payments were complete.

Good idea. These types of account are usually high interest and should be avoided.