Why is 999 a POOR credit rating?

Zebedee69

wymondham wrote: »

I think it's possible to have a rating too high these days - it shows itself especially with Credit Card companies as a good credit rating says to them you pay off the amount each month and don't pay interest (ie pay them interest)...

What is the best way to 'dent' your rating if it's at 999 ?????

Go bankrupt:rotfl:

wymondham

a tad extreme! :T

Jolly_Roger

The reason why my wife is so angry is that the two sub-10% APR cards were being marketed at people with "excellent credit histories". When she applied, she was offered alternative high APR cards, with almost double the APR in one case. It seems to both of us that the advertising used by both companies was totally misleading. They aren't looking for people with excellent credit histories, they want people who will make them money. So the headline rate cards are being deliberately used to seduce people in. Who on earth would be eligible for a sub-10% APR card? It strikes me that for such a rate to be offered suggests the companies want people who spend an awful lot on their cards and don't pay off balances. If that is the case then "an excellent credit history" won't do you any good. The advertising therefore deliberately sets out to mislead. That's not legal, is it?

YorkshireBoy

Jolly_Roger wrote:

Who on earth would be eligible for a sub-10% APR card?

At the risk of appearing greedy, I have 3 of them.

Just out of interest, did your wife fully meet Capital One's "excellent credit rating" criteria, specifically...

• Less than £10K of credit card balances
• A credit limit of at least £5K on her own active credit card at the moment
• Held a credit card in her own name for at least 5 years (that can be verified from a search of her credit file with the CRA's)

When the likes of Capital One launch these types of cards they can afford to cherry pick applicants because they will be inundated with applications. The only stipulation, from an advertising viewpoint, is that they must offer 66% of successful applicants the 'typical' rate. There will, therefore, be four possible outcomes from an application...

1. You get what you applied for, and on their 'typical' rate.
2. You get the product, but at a slightly higher APR.
3. You get a different product offered.
4. You're rejected.

If rejected, you either appeal or move on. Best not to get worked up over it.

ManAtHome

Jolly_Roger wrote: »

It strikes me that for such a rate to be offered suggests the companies want people who spend an awful lot on their cards and don't pay off balances.

But people who pay off balances regardless of spending wouldn't be that bothered about the interest rate anyway - better off with a high-rate cashback card...