Credit scores

Bowsa

Hi all,

First time poster - I hope you're all good!

I had a few questions regarding my credit score.

I am saving for a deposit for a house and reducing my debt at the same time.

Currently in my O/D near the limit which I am slowly reducing (this is costing me about £7 a month in interest.

I have two C/cards on 0% one which is about to come to an end. Card provider 2 is offering me 0% on card and money transfers - I will definitely be taking up the offer on the credit card.

Question one is: will having money transferred to to my account to wipe off my O/D look bad inbox a credit rating or would it affect it negatively in any way?

Also if I do go ahead and consolidate my O/D cards onto one card.....would i be better to leave the accounts open, or close them down.

Shutting them down would mean that's i a man essentially losing 1/2 the credit currently available to me.

Or would it be better to leave the O/D and credit card 1 active and just not go use the credit.

My credit rating is fairly good, so I don't want to damage it, as you'd imagine i am trying to improve it.

TIA

Bowsa :beer:

DCFC79

Forget the credit rating as no 1 can see it, the history is whats important as lenders see it.

You shouldnt really be in your OD not least it costs you money but it shows that you cant manage your finances also the bank could recall it at any time.

Can you not wipe out the O/D with your savings ? Be saving yourself £7.

What are the apr for each of the cards and whats owed on them ?

[Deleted User]

You don't have a credit score - just credit files.

Keeping the same amount of debt, by using a money transfer, won't have any particular impact on how lenders see you.

Bowsa

I won't get go into exat amounts but around 6k over the 2 cards both currently on 0% as I say.

Savings are tied up in an H2B isa so I can't just wipe out the overdraft.....hense every why I was contemplating doing a money transfer (@ 0%) for my O/D and as one cards 0% offer is nearly up, doing a balance transfer (also 0%)

Bowsa

So am I right in thinking that I'm good to swap everything to one card without causing any issues.

What about leaving the accounts live or should I close them

Ben8282

Repay overdraft with money transfer.
Do not close any accounts.

Bowsa

Cheers all, I will get cracking today

PixelPound

You may well get movement on your scores, but as has been said, only you see that.

Your first goal is to pay less interest, so the money transfer, is good, though there is the BT fee to add. As you are aiming to buy a house in the future, then its a case of planning for the day you want a mortgage. Once you have cleared your OD can you stay out of it? Have you a plan to clear your cards, and how does that timescale look with when you want to buy.

Rhetorical questions really, its just constantly dipping into OD would show difficulty with cash flow and outstanding CC balances can effect affordability (you can have them, it just means you may be offered a lower maximum, though some lenders will insist they are cleared before approval).

Richey_

Bowsa do you actually have any savings or just credit card and overdraft debt which because you have that money in a savings account, then you feel that's savings?

Bowsa

nic_c wrote: »

You may well get movement on your scores, but as has been said, only you see that.

Your first goal is to pay less interest, so the money transfer, is good, though there is the BT fee to add. As you are aiming to buy a house in the future, then its a case of planning for the day you want a mortgage. Once you have cleared your OD can you stay out of it? Have you a plan to clear your cards, and how does that timescale look with when you want to buy.

Rhetorical questions really, its just constantly dipping into OD would show difficulty with cash flow and outstanding CC balances can effect affordability (you can have them, it just means you may be offered a lower maximum, though some lenders will insist they are cleared before approval).

Hi there,

Im aware of the BT fee and my interest on both cards was at 0% the only thing I was having interest paid on was the O/D.

my debts are all being paid off - around £150 p/m with around £300 (set up and agreed) going into the house savings.

I also have a litte extra that I am putting aside, to allow for other needs birthdays / christmas or anything else that I may need (incase it all blows up).

so as of now the O/D has been transferred to Credit card 2, as has Credit Card 1.....so now ALL my debt is currently on one card, and is 0% interest.

Bowsa

Richey_ wrote: »

Bowsa do you actually have any savings or just credit card and overdraft debt which because you have that money in a savings account, then you feel that's savings?

very little at this point a couple of hundred, essentially incase something goes wrong or blows up lol.

though I am paying more than the minimum payments for the cards, and getting savings sorted..... my finances are in a much better place and have been for a number of years and so I don't think I will be going back into it......though never thought or was aware of money transfers.