Impact New Credit Card Every Year

YoungGentry

Hi Forum,



My workplace doesn't have a season ticket loan scheme, so I want to use a 0% credit card to have a interest free period long enough that I pay down every month.



Essentially get a card 12 or otherwise, buy my season ticket, pay it down monthly, close the credit card, get another one with 0% interest on purchases.



What is the impact of doing this on my credit rating? I already have a mortgage, and no other credit cards.



Thanks,

[Deleted User]

Lenders will see the accounts opened and closed, and make their decisions based on that.

In isolation, it's no reason for major concern, although I would personally keep a number of them open and use them regularly to build some solid history.

Willing2Learn

The only thing that impacts your credit file is your history of how you manage your credit accounts. If you manage them well, then your file will have positive markers. If you don't manage your accounts well, then your file will have negative markers.

System

Willing2Learn wrote: »

The only thing that impacts your credit file is your history of how you manage your credit accounts. If you manage them well, then your file will have positive markers. If you don't manage your accounts well, then your file will have negative markers.

Thats just not true.
If you make 10 credit applications every week this will certainly negatively affect your credit file.

Willing2Learn

beany_bot wrote: »

Thats just not true.
If you make 10 credit applications every week this will certainly negatively affect your credit file.

Sorry, but did the OP say that they had made 10 applications in a week. No. I was simply responding [accurately] to their query.

You are just being pedantic I believe

Candyapple

YoungGentry wrote: »

My workplace doesn't have a season ticket loan scheme, so I want to use a 0% credit card to have a interest free period long enough that I pay down every month.

Essentially get a card 12 or otherwise, buy my season ticket, pay it down monthly, close the credit card, get another one with 0% interest on purchases.

No need to apply for one every year - you can get 0% deals up to 28 months:
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

YoungGentry

Candyapple wrote: »

No need to apply for one every year - you can get 0% deals up to 28 months:
https://www.moneysavingexpert.com/credit-cards/best-0-credit-cards/

So every 27/28 months then. No interest will ever be accrued. I should be okay?

Willing2Learn

Just make sure that you have the money kept aside to clear the 28 month balance when the promotion ends and you should be fine. Don't use it as an excuse to build debt

YoungGentry

Willing2Learn wrote: »

Just make sure that you have the money kept aside to clear the 28 month balance when the promotion ends and you should be fine. Don't use it as an excuse to build debt

It is solely budget management, faciliation of monthly payments

Candyapple

YoungGentry wrote: »

So every 27/28 months then. No interest will ever be accrued. I should be okay?

Yes - no interest. Just make sure you set up a DD to take the minimum monthly payment and an alarm in your calendar about a month before the offer is due to end to remind you to clear the balance and check to see what new deals are out there.

Nasqueron

Just remember that a balance transfer card offers typically last for 3 months or so, you may get another offer later. In the ideal world you have 3-4 cards that may keep offering either money transfer or balance transfers and every year you buy the card either with cash from the money transfer or pay on card then BT it to another card and pay off. Do aim to pay it off in 12 months though or you'll end up with a long chain of season ticket debt accumulating