0% credit cards and my credit rating

gundo

Apologies for the numpty question but does bouncing around from one 0% credit card to the other damage your credit rating? I heard a story from a friend of someone he knew at work who stoozed (i.e. 0% to 0% CC) for 2.5 yrs then was refused an application.

I've probably had 10 different credit cards in the past 4 years (not simultaneously!) from swapping balances around and currently I have 5 cards. If I apply for another one (Cahoot for web shopping) will I damage my credit rating?

I've never defaulted on a loan, I'm on the electoral register, I'm a home owner and usually I pay my CC bills on the dot (occasionally due to !!!!-ups I've forgotten to pay a bill and paid it immediately when it was pointed out) so my CR should be ok.

Clariman

It is not a numpty question at all gundo - it is a very sensible one. There are a number of factors which affect credit-worthiness and different lenders use different criteria so it is difficult to be very specific. However, some common themes emerge and these include

1. A large number of applications in a short period of time give the impression of someone being desperate for credit and, therefore, potentially a high risk customer. For stoozers I suggest a maximum of one credit application per month and no more than 10 a year. It is just a guideline. 10 should be a maximum rather than a target ! Alternatively a couple of applications in one month then no more for 3 or 4 months works fine - which is what I do.

2. The larger the amount of credit you have available to you on cards and loans, then the more likely that a future application will be turned down. As a general rule it is a good idea to close off unused cards or, at least, reduced the credit limits on them. Having said that, some card issuers also look at the amount of credit you have available to you and how much you are actually using, so if you have a small number of cards but they are all maxed out, it might make you look as if you are in debt up to the max. If you have one card with a small balance it suggests that you are not totally up to your existing credit limits.

Coming to your specific situation, having 10 cards over 4 years and 5 at one time is not a big deal in itself. I would say that your likelihood of getting more credit would depend on what the total limit is across the number of cards versus your income rather than the number of cards.

Your !!!!-ups that you mention will appear on your credit file as late payments and they will be picked up by any potential new lenders when they do a credit check. Depending on how many there are, it could have an impact on your credit worthiness.

Clariman