Ball park credit score for credit card acceptance?

xlnc99

i believe beany pot is correct but gary is also correct. Even if you pay off every month it all depends on how much you spend on your CC the following month. Its the way the credit reports are updated and when. They always show the balance of the credit card so if your direct debit is paying in full every month but you spend £3000 on your CC before your next statement then that could show on your credit report. IF you understand what i mean. It all depends on the statement when the companies report to your credit file.

The only sure way to make it 0 is to leave a month gap if your paying all your credit cards off fully each month and then the following month the balance on your credit report will show as 0

cymruchris

xlc99 - just in case you weren't aware - The CRA's report exactly your balance and your payment each month - so even if at the 'snapshot' of taking the balance for a particular month, and say that happened to be £71 as per my account above - it also shows the payment of £71 also being made - which of course shows the fact that the account is being settled in full every month. So don't worry about what the 'balance' is - if you're paying off your accounts in full every month - as anyone that needs to see it if you apply for something else can see it.

xlnc99

oh i see. Experian dont do it like that, what site was that screenshot from? MSE?

cymruchris

xlnc99 wrote: »

oh i see. Experian dont do it like that, what site was that screenshot from? MSE?

This is on MSE credit club - but I've seen it elsewhere too... Even if you don't see it though - be assured any future credit referencing company would I'm sure

cymruchris

(You've usually got to toggle 'more info' in order to see it)

xlnc99

the previous balances dont show on my account for all my credits but i dont have a credit card so maybe thats why? for my JD Williams account it doesnt show anything previous like yours and im logged into MSE

cymruchris

xlnc99 wrote: »

the previous balances dont show on my account for all my credits but i dont have a credit card so maybe thats why? for my JD Williams account it doesnt show anything previous like yours and im logged into MSE

I imagine it only works for credit cards - of course any current accounts won't show any balances either - as the banks don't share positive balances - only negative balances such as overdrafts. (With the rare exception where you've overpaid a credit card - or a refund has taken you into positive territory)

SlovakianGuy

OK, if the credit utilisation ratio doesn't matter, then what is the point for CRAs to show it to you and tell you it's either good or bad? I do understand why they show you their "score". They can sell you products for "score improvement". But what benefit is in it for them if they tell you to spend less (keep the utilisation low)? I can't see any. So maybe they show it to you because it really does matter to some extent?

On the other hand, I've read about people who do stoozing and every time they apply for a new card, they get even higher credit limit, despite their previous card being maxed out. If maxed out cards were seen as a problem by other lenders, wouldn't these people get rejected or at least get very small limits on new cards from new lenders?

I just took out a credit card with £5000 credit limit and 20 months 0% interest on purchases. Let's say I buy a car for £4900 with that card, then pay off about £250 every month so the balance is cleared right at the end of the 0% introductory period. My initial credit utilisation ratio would be 98% (4900 / 5000), gradually decreasing as I pay £250 every month. If this was seen as a problem by other lenders, then what would be the point of getting 0% purchase credit cards after all? People would be encouraged to apply for these card and then only spend small amounts on them because of the credit utilisation ratio?

I'm a bit confused here because both sides of the debate have some rational arguments, but it's just a word against word.

[Deleted User]

The CRA’s show it to you purely to coincide with the “score” improvement suggestions.

A card on a promo balance with “high utilisation” is different to a card not on a promo balance.

Willing2Learn

!!! wrote: »

A card on a promo balance with “high utilisation” is different to a card not on a promo balance.

And just to add to this that Experian mark an account on a promotional offer with a 'promo' marker too...