Will this help with my credit score?

premiumz

I don't have any credit cards or loans. Just a mortgage.
I am in need of a loan for a car so will be getting one soon as we have just paid off our PCP finance in full on our other car and need to change to a different car.
I want to get an American express CC to rack up air miles.
I also want to get a second CC with 0% interest for over 12 months.

Would getting 2 credit cards help increase my credit score as long as I pay whatever I use on them off each month?

Or does it get to a point where, you have a loan, a credit card and now another credit card so this will negatively impact your credit score?

Thanks for taking the time to read my post!

(FYI, don't worry, this isn't me spiraling into debt)

CliveOfIndia

Your score is utterly meaningless, it plays no part in any lending decisions.

Using a credit card regularly and always paying off in full every month is a good way of building up a favourable credit history, which is what matters.

It's always something of a balancing act.  Having multiple lines of well-managed credit is viewed as a positive by many lenders, but there does come a point where having too much available credit can start to make them jittery.  But on balance, having two credit cards would not usually be viewed as excessive.

As a slight aside, do you really need a loan for the new car?  If you're able to buy it outright with savings, this would save you quite a bit in interest payments.

premiumz

CliveOfIndia said:

Your score is utterly meaningless, it plays no part in any lending decisions.

Using a credit card regularly and always paying off in full every month is a good way of building up a favourable credit history, which is what matters.

It's always something of a balancing act.  Having multiple lines of well-managed credit is viewed as a positive by many lenders, but there does come a point where having too much available credit can start to make them jittery.  But on balance, having two credit cards would not usually be viewed as excessive.

As a slight aside, do you really need a loan for the new car?  If you're able to buy it outright with savings, this would save your quite a bit in interest payments.

Hi,

Thanks for the reply.

Credit history/file is what I really meant by credit score. With the loan, I need it to help buy the new car as I am selling my current car and using that money for something else.
The credit cards are to help build a better history.
I have one default on my history (which was unfairly put on there for a £30 bill that I had no idea about). There's nothing I can no about that but it does come off my history in 2026 I believe. I've always paid my bills etc and as mentioned have a mortgage. Always paid on time etc. This one default is having a bad effect on how my credit looks. So I want to try and level that out by using credit cards and showing companies that I am in fact, good at paying what I owe etc.

Thanks

eskbanker

premiumz said:

I don't have any credit cards or loans. Just a mortgage.
I am in need of a loan for a car so will be getting one soon as we have just paid off our PCP finance in full on our other car and need to change to a different car.
I want to get an American express CC to rack up air miles.
I also want to get a second CC with 0% interest for over 12 months.

Would getting 2 credit cards help increase my credit score as long as I pay whatever I use on them off each month?

Or does it get to a point where, you have a loan, a credit card and now another credit card so this will negatively impact your credit score?

Surely even for those who believe in credit scores, they can't be anything more than a means to an end, i.e. what you really want is credit rather than a fictitious score?

You can check what your credit files look like, including commentary about what may be seen as negative, and also experiment with eligibility checkers, as it's unlikely that you'd have access to the best credit cards (such as 0% and reward ones) with no CC history:

https://www.moneysavingexpert.com/loans/check-free-credit-report/
https://www.moneysavingexpert.com/eligibility/credit-cards/search/

cymruchris

premiumz said:

I don't have any credit cards or loans. Just a mortgage.
I am in need of a loan for a car so will be getting one soon as we have just paid off our PCP finance in full on our other car and need to change to a different car.
I want to get an American express CC to rack up air miles.
I also want to get a second CC with 0% interest for over 12 months.

Would getting 2 credit cards help increase my credit score as long as I pay whatever I use on them off each month?

Or does it get to a point where, you have a loan, a credit card and now another credit card so this will negatively impact your credit score?

Thanks for taking the time to read my post!

(FYI, don't worry, this isn't me spiraling into debt)

As above - don't focus on the score - only the history - and it seems that if you ONLY have a mortgage - then you have very little HISTORY.

That might impact you in getting your desired Amex/0% interest free card and a loan.

Those that provide credit want to see that you have a well-managed credit HISTORY. They like to see that you've been making payments on time, clearing balances and generally being responsible with what you borrow and pay back.

If you're only credit account is your mortgage (and although that'll be a nice long stable history I'm sure) it may be that credit providers would be wary about giving you the best products off the bat as it were.

The way to test the waters is to run eligibility checks on the providers websites directly to see if they'll offer you the product you're interested in.

If they say 'no' - then you might have to start at a lower peg with a credit builder credit card, build some positive history before moving on to better products.

You might be lucky that with your other financial info, how long you've been at your address, income etc. they may offer you better products - but it's just a heads up that if you don't get what you want, there's likely a reason why.

premiumz

eskbanker said:

premiumz said:

I don't have any credit cards or loans. Just a mortgage.
I am in need of a loan for a car so will be getting one soon as we have just paid off our PCP finance in full on our other car and need to change to a different car.
I want to get an American express CC to rack up air miles.
I also want to get a second CC with 0% interest for over 12 months.

Would getting 2 credit cards help increase my credit score as long as I pay whatever I use on them off each month?

Or does it get to a point where, you have a loan, a credit card and now another credit card so this will negatively impact your credit score?

Surely even for those who believe in credit scores, they can't be anything more than a means to an end, i.e. what you really want is credit rather than a fictitious score?

You can check what your credit files look like, including commentary about what may be seen as negative, and also experiment with eligibility checkers, as it's unlikely that you'd have access to the best credit cards (such as 0% and reward ones) with no CC history:

https://www.moneysavingexpert.com/loans/check-free-credit-report/
https://www.moneysavingexpert.com/eligibility/credit-cards/search/

Yeah exactly that. I have a default on my account and it's giving me bad rates on things although I pay my bills on time etc. So I think perhaps getting a CC will help with this and show companies I am responsible with handling finance. I just want to make sure I don't over-do it and that getting 2 CC is beneficial and not detrimental.

eskbanker

premiumz said:

eskbanker said:

premiumz said:

I don't have any credit cards or loans. Just a mortgage.
I am in need of a loan for a car so will be getting one soon as we have just paid off our PCP finance in full on our other car and need to change to a different car.
I want to get an American express CC to rack up air miles.
I also want to get a second CC with 0% interest for over 12 months.

Would getting 2 credit cards help increase my credit score as long as I pay whatever I use on them off each month?

Or does it get to a point where, you have a loan, a credit card and now another credit card so this will negatively impact your credit score?

Surely even for those who believe in credit scores, they can't be anything more than a means to an end, i.e. what you really want is credit rather than a fictitious score?

You can check what your credit files look like, including commentary about what may be seen as negative, and also experiment with eligibility checkers, as it's unlikely that you'd have access to the best credit cards (such as 0% and reward ones) with no CC history:

https://www.moneysavingexpert.com/loans/check-free-credit-report/
https://www.moneysavingexpert.com/eligibility/credit-cards/search/

Yeah exactly that. I have a default on my account and it's giving me bad rates on things although I pay my bills on time etc. So I think perhaps getting a CC will help with this and show companies I am responsible with handling finance. I just want to make sure I don't over-do it and that getting 2 CC is beneficial and not detrimental.

It's a fine line - if you obtain a loan and also a CC (likely to be a subprime one) and stick to the repayment schedules (in full for the CC) then this is likely to be beneficial, but you could indeed overdo it if you keep on seeking further credit, so take it slowly and wait to see what your files look like six months later on.

cymruchris

premiumz said:

eskbanker said:

premiumz said:

I don't have any credit cards or loans. Just a mortgage.
I am in need of a loan for a car so will be getting one soon as we have just paid off our PCP finance in full on our other car and need to change to a different car.
I want to get an American express CC to rack up air miles.
I also want to get a second CC with 0% interest for over 12 months.

Would getting 2 credit cards help increase my credit score as long as I pay whatever I use on them off each month?

Or does it get to a point where, you have a loan, a credit card and now another credit card so this will negatively impact your credit score?

Surely even for those who believe in credit scores, they can't be anything more than a means to an end, i.e. what you really want is credit rather than a fictitious score?

You can check what your credit files look like, including commentary about what may be seen as negative, and also experiment with eligibility checkers, as it's unlikely that you'd have access to the best credit cards (such as 0% and reward ones) with no CC history:

https://www.moneysavingexpert.com/loans/check-free-credit-report/
https://www.moneysavingexpert.com/eligibility/credit-cards/search/

Yeah exactly that. I have a default on my account and it's giving me bad rates on things although I pay my bills on time etc. So I think perhaps getting a CC will help with this and show companies I am responsible with handling finance. I just want to make sure I don't over-do it and that getting 2 CC is beneficial and not detrimental.

With a default on file - particularly if it's recent, you'll most likely struggle to get an amex and a 0 percent card. Until it falls off it'll be a bit of  a red flag to lenders, so you may need to start at the credit building stage first. The likes of Vanquis, Capital One and Aqua spring to mind. But as I said previously try the eligibility checkers directly on various providers websites to get an indication of acceptance. You'll then have a clear idea whether places like Amex will say no if you make a full application.

premiumz

cymruchris said:

premiumz said:

eskbanker said:

premiumz said:

I don't have any credit cards or loans. Just a mortgage.
I am in need of a loan for a car so will be getting one soon as we have just paid off our PCP finance in full on our other car and need to change to a different car.
I want to get an American express CC to rack up air miles.
I also want to get a second CC with 0% interest for over 12 months.

Would getting 2 credit cards help increase my credit score as long as I pay whatever I use on them off each month?

Or does it get to a point where, you have a loan, a credit card and now another credit card so this will negatively impact your credit score?

Surely even for those who believe in credit scores, they can't be anything more than a means to an end, i.e. what you really want is credit rather than a fictitious score?

You can check what your credit files look like, including commentary about what may be seen as negative, and also experiment with eligibility checkers, as it's unlikely that you'd have access to the best credit cards (such as 0% and reward ones) with no CC history:

https://www.moneysavingexpert.com/loans/check-free-credit-report/
https://www.moneysavingexpert.com/eligibility/credit-cards/search/

Yeah exactly that. I have a default on my account and it's giving me bad rates on things although I pay my bills on time etc. So I think perhaps getting a CC will help with this and show companies I am responsible with handling finance. I just want to make sure I don't over-do it and that getting 2 CC is beneficial and not detrimental.

With a default on file - particularly if it's recent, you'll most likely struggle to get an amex and a 0 percent card. Until it falls off it'll be a bit of  a red flag to lenders, so you may need to start at the credit building stage first. The likes of Vanquis, Capital One and Aqua spring to mind. But as I said previously try the eligibility checkers directly on various providers websites to get an indication of acceptance. You'll then have a clear idea whether places like Amex will say no if you make a full application.

Hi,

I already did a pre-check for them. The amex is the british airways one, 9/10 for approval on their website and the 0% through a different bank was pre-approved. Not sure if that will change once I take one and then try to apply for another. I plan on using the amex one for everyday purchases to rack up air miles and the 0% interest rate for something in the short term. Thanks

maxximus75

Your credit history seems to be your mortgage and a recently paid off PCP finance agreement so a solid start.

When you apply for credit, it will leave a hard search.  This shows lenders you are actively applying for credit.  It certianly doesnt stop you from getting further credit.

If you have multiple and recent hard searches it can make some lenders jittery but it depends on their lending criteria.

Your default is over 4 years so although, it's hurting your "credit score", I doubt on a manual review, for £30 it would be much of an issue.  Worst case it may mean a higher interest rate.  Some lenders may have a "no default" policy but it obviously varies.

Lender pre-checks (soft search) are pretty accurate, in my opinion, as long as they don't find anything nasty on a full search, you should be fine.

Good luck!